From Yahoo Finance: 2025-06-18 06:52:00

US home decor retail chain Kirkland’s announces strategic adjustments to operations and management to drive business transformation and financial gains in Q1 of 2025. Net sales decrease to $81.5m from $91.8m, attributed to lower e-commerce sales, store count drop, and decline in comparable sales.

Gross profit for the quarter stands at $20.3m, down from $27.1m due to lower merchandise margins and increased store occupancy costs. Operating expenses decrease slightly to $30.8m driven by lower compensation, advertising, and consulting costs.

Kirkland’s reports an operating loss of $10.5m, compared to $7.5m in the previous year, with a net loss of $11.8m. CEO Amy Sullivan highlights challenges due to weather and consumer sentiment, but notes improvements in store performance and e-commerce pressures.

The company’s EBITDA for the quarter is a loss of $8.4m, with an adjusted loss of $7.9m. Beyond increases stake to 65%, plans to acquire intellectual property. Kirkland’s rebrands to The Brand House Collective, aiming for a multi-brand retail operation.

As part of its transformation strategy, Kirkland’s plans to consolidate properties, close underperforming stores, and focus on maintaining 290 stores under The Brand House Collective. New board members appointed, all brand leaders to report directly to CEO Amy Sullivan.

Read more: Kirkland’s makes operational and leadership change as Q1 2025 sales fall