Kirkland’s will rebrand itself to The Brand House Collective as part of the company’s transformation into a multi-brand retail operator.
Along with the new identity, the company will take several actions to strengthen its foundation, including reducing excess inventory, closing underperforming stores, optimizing real estate assets, and enhancing talent.
The store network is expected to reduce from more than 310 to approximately 290, which will operate as the foundational footprint for Kirkland’s Home, Bed Bath & Beyond Home, and Overstock.
A number of existing Kirkland’s Home stores will undergo a full market conversion to Bed Bath & Beyond Home locations.
This first store of such kind will open in Brentwood, Tennessee in August, with five more to follow in the market. Approximately 75 more stores are expected to be converted next year.
The website of Kirkland’s Home and Bed Bath & Beyond Home will be integrated to support brand transition and overall growth.
In addition, the company will open a physical store for Overstock in Nashville, with plans to expand to approximately 30 locations after the initial pilot. It is also finalizing store designs for BuyBuy Baby and other potential concepts as part of the multi-brand strategy.
To support the transformation, Kirkland’s has appointed Jamie Schisler as COO to oversee operations related to planning, marketing, e-commerce and technology. Kerri Dlugokinski was named VP general merchandising manager of Bed Bath & Beyond Home and Courtenay Adolf was assumed the VP of supply chain role.
The company’s board will also have four new directors – Eric Schwartzman, Neely Tamminga, Tamara Ward and Steve Woodward. Ward and Woodward were nominated by Beyond in accordance with the terms of the two companies’ agreement in May.
In conjunction with the corporate name change, the company will change its ticker symbol from KIRK to TBHC on the Nasdaq stock market.
“From the moment our partnership with Beyond began it was clear that our model needed to evolve,” commented Amy Sullivan, CEO of Kirkland’s.
“We are building a leaner, flatter and performance-led organization – driven by transformation, anchored in accountability, and powered by new ideas that we believe will deliver results.”
Sales decline
For the first quarter ended May 3, Kirkland’s net sales fell 11 per cent to $81.5 million, driven by a 5 per cent decrease in store count and poor e-commerce performance.
Comparable sales slid 8.9 per cent, with same-store sales down 3.1 per cent and comparable e-commerce sales down 26.7 per cent.
On the bottom line, operating loss expanded from $7.5 million in the year-ago period to $10.5 million. Net loss rose from $8.8 million last year to $11.8 million.
Management stated that the company’s first-quarter performance was impacted by weather and the ongoing softness in consumer sentiment.
