Kirkland's(US:KIRK) Prnewswireยท2025-06-17 11:00Core Insights - Kirkland's, Inc. announced a significant transformation, including a corporate reorganization and changes to its Board of Directors, aiming to enhance performance and profitability as a multi-brand retail operator [1][19][20]. Financial Performance - For the first quarter of 2025, net sales were $81.5 million, down from $91.8 million in the same period last year, primarily due to declines in e-commerce and comparable store sales [4][8]. - Comparable sales decreased by 8.9%, with a 3.1% drop in comparable store sales and a 26.7% decline in e-commerce sales [4][8]. - Gross profit was $20.3 million, representing 24.9% of net sales, compared to $27.1 million or 29.5% of net sales in the prior year [5][8]. - Operating expenses were $30.8 million, or 37.8% of net sales, a slight decrease from $34.6 million or 37.7% of net sales in the previous year [6][8]. - The operating loss for the quarter was $10.5 million, compared to a loss of $7.5 million in the prior year [7][8]. - Net loss was $11.8 million, or a loss of $0.54 per diluted share, compared to a loss of $8.8 million or $0.68 per diluted share in the prior year [8][11]. Operational Changes - The company is focusing on moving excess and slower-turning inventory and eliminating underperforming assets while expanding the utilization of licenses from Bed Bath & Beyond, Overstock, and buybuy Baby [3][19]. - Kirkland's plans to rebrand itself as "The Brand House Collective, Inc." pending shareholder approval, reflecting its transformation into a multi-brand merchandising and retail operator [19][20]. Debt and Financial Position - As of May 3, 2025, the company had a cash balance of $3.5 million and $38.9 million in outstanding debt [13][17]. - The company closed a $5.2 million expansion of its existing credit agreement with Beyond, which also included amendments to existing transactions [15][16]. - The company experienced disruptions at its Jackson, Tennessee distribution center due to a tornado, impacting its e-commerce operations [18]. Inventory and Store Count - Inventory as of May 3, 2025, was $76.4 million, a 0.8% increase compared to the prior year [12]. - The company closed three stores during the quarter, ending with a total of 314 stores [8].