Kirkland’s, Inc. (NASDAQ:KIRK) Q4 2022 Earnings Call Transcript

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But certainly, you know, below the price points that we’ve had and we’ve rebalanced our marketing that was very heavily focused last year on room settings and higher ticket and kind of said, let’s do both, let’s have some of that. But let’s also really emphasize to our core customers that we have this new quick come in, surprise and delight, pick up something around $20 to $30 and really make happiness happen in our stores. And the stores have embraced it. Our customers are loving it. And so as those products flow in, and we actually — not just the flow in product, but we emphasize how we show those products in the store because remember, we had that up to maybe 30% in the past, but we made it almost like a hunt that the customer had defined.

Now we’re putting that on table, really focusing on them and saying, here’s a whole table of items under $20, if you’re interested in that. And the taste level and items, they really look great. So a lot of work’s gone into that. Amy Sullivan and her team have done a fantastic job about recalibrating towards what we think the customer wants right now and being able to make those adjustments, so we can reap the benefits this year.

John Lawrence: Yes. And just quickly, Woody, would you give us just a little insight into maybe a couple of those categories that you’re really aiming for or showing some promise first half of the year that stretch — consumer is going to find a real value?

Steven Woodward: Yes. Really, there’s a couple that have been ongoing successful both in the back half of last year and certainly into this year. Our customer loves newness. So our floral category has been wonderful. It kind of feeds into that lower price point coming in and getting something, whether it’s a REIT or an arrangement for your table. So that’s been doing really well. Our textile business continues to do really well. And our furniture business at the end of last year was very good, and this year, it’s stabilized and our inventory levels are kind of where we want them to be. So we have multiples categories that are doing well. And right now it’s just the balancing of making sure we think we have some payback that we need to do and some decorative accessories where our price points got a little too high and we lowered those, so that somebody can come in and buy something for their home that’s fun and exciting.

We’ve had some pluses and minuses in our wall decor business. But generally, our art business has been pretty well done for this past. And so there are definitely pluses and minuses. And I think that our stores probably look better than they’ve looked for a long time. If you walk in, it doesn’t look like we cut our inventory. It looks like we’ve just really leaned into the items that we feel like the customer is desiring right now.

John Lawrence: Great. Thanks. Good luck.

Steven Woodward: Thank you.

Operator: And ladies and gentlemen, with that, we’ll be concluding today’s question-and-answer session. I’d like to turn the floor back over to the management team for any closing remarks.

Steven Woodward: Yes, I’d like to just say thank you for the past 4.5 years, your support. I think that we have done so much to stabilize the ship and get us ready for the next 10 to 15 years as a value player in the home furnishings pyramid for specialty. And I just want to say thank you to everyone, thank you to every associate that’s been working so hard on this transition and thanks to all of our supporters out there, and look forward to better results. Thanks.

Operator: And ladies and gentlemen that does conclude today’s teleconference. You may now disconnect your lines at this time. Thank you for your participation.

Steven Woodward: Thank you.

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