KIRKLAND'S ACCELERATES TRANSFORMATION FOCUSED ON PATH TO PROFITABILITY

Core Insights - Kirkland's, Inc. reported preliminary fourth quarter fiscal 2024 net sales of approximately $148 million, with comparable brick-and-mortar store sales growth of 1.6$7.9 million and diluted earnings per share of approximately $0.50, with adjusted EBITDA of approximately$12.0 million [6][12] - The company had $41.9 million in outstanding borrowings and letters of credit under its revolving credit facility as of February 17, 2025 [6] Strategic Initiatives - The company is focused on three strategic initiatives: improving or eliminating underperforming assets, optimizing e-commerce performance, and maximizing the Kirkland's Home brand value and distribution [5][2] - Approximately 6% of stores have been identified as underperforming, with actions being taken to convert or close these locations [5] E-Commerce Strategy - Kirkland's is not satisfied with its e-commerce performance and plans to leverage partnerships to enhance site experience and improve conversion rates [5][2] - The company is implementing strategic actions to eliminate low-margin SKUs and expand product categories to drive average order value [5] Brand Expansion - Kirkland's Home brand is set to expand through private label distribution across its family of brands, including Bed Bath & Beyond [5][2] - The company is exploring opportunities to enhance e-commerce distribution in furniture, patio, and rugs [5]