Kirkland’s Home’s sales slip as consumers tighten belts

Supplied: Kirkland’s Home. (Source: Big Stock)

Kirkland’s Home has reported a 3.5 per cent decrease in comparable sales for the first quarter of FY24, citing a drop in consolidated average ticket and e-commerce traffic.

The company’s net sales for the period were $91.8 million, compared to $96.9 million in the prior-year quarter. 

“We are continuing to see progress on our strategic initiatives as demonstrated by our comparable sales growth of 2.8 per cent in our brick-and-mortar stores for the first quarter,” said Amy Sullivan, CEO of Kirkland’s Home.

“While this positive momentum was offset by continued pressure in our e-commerce business, we are encouraged by the early signs of traction driven by our marketing and merchandising repositioning strategies.”

Kirkland’s Home reported that it operated at a loss of $7.5 million, a $2.8 million improvement compared to the prior year, thanks to an increase in gross profit and lower operating expenses. 

“As we look to the future, we remain confident that our strategic initiatives that include re-engaging our core customer, refocusing our product assortment, and strengthening our omni-channel capabilities are key to driving sales growth,” said Sullivan.

“We believe these initiatives coupled with maintaining disciplined operational effectiveness and improvement in our liquidity position, should enable us to achieve $600 million in revenue and an adjusted EBITDA margin in line with our historical performance in the next five years.”

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