Kirkland's, Inc. (KIRK): Business Model Canvas

Tauchen Sie ein in die strategische Blaupause von Kirkland's, Inc. (KIRK), einem Einzelhändler für Wohnaccessoires, der meisterhaft ein Geschäftsmodell entwickelt hat, das erschwinglichen Stil mit innovativen Einzelhandelsstrategien verbindet. Von seinem umfangreichen Netzwerk physischer Geschäfte bis hin zu einer robusten E-Commerce-Plattform hat sich Kirkland's als Anlaufstelle für preisbewusste Verbraucher positioniert, die auf der Suche nach trendigen Einrichtungsgegenständen sind. Entdecken Sie, wie sich dieses führende Einzelhandelsunternehmen in der Wettbewerbslandschaft der Heimdekoration behauptet und dabei wichtige Partnerschaften, einzigartige Wertversprechen und einen Multi-Channel-Ansatz nutzt, der sowohl bei Hausbesitzern aus der Mittelschicht als auch bei Design-Enthusiasten Anklang findet.

Kirkland's, Inc. (KIRK) – Geschäftsmodell: Wichtige Partnerschaften

Hersteller von Wohnaccessoires und Möbeln

Kirkland's arbeitet mit mehreren Herstellern zusammen, um Heimdekorations- und Möbelprodukte zu beschaffen. Im Jahr 2023 gab das Unternehmen an, mit etwa 200–250 verschiedenen Produktionspartnern weltweit zusammenzuarbeiten.

Herstellertyp	Anzahl der Partner	Geografischer Ursprung
Inländische Hersteller	75-100	Vereinigte Staaten
Internationale Hersteller	125-150	China, Vietnam, Indien

Großhandelslieferanten und -händler

Kirkland's unterhält strategische Beziehungen zu Großhandelslieferanten, um einen konsistenten Produktbestand und wettbewerbsfähige Preise sicherzustellen.

• Gesamtes Großhandelslieferantennetzwerk: 50–75 Partner
• Jährlicher Beschaffungswert: Ungefähr 180–220 Millionen US-Dollar
• Durchschnittliche Dauer der Lieferantenbeziehung: 3-5 Jahre

Anbieter von E-Commerce-Plattformen

Kirkland's arbeitet mit Anbietern digitaler Plattformen zusammen, um die Möglichkeiten des Online-Einzelhandels zu verbessern.

Plattformanbieter	Servicetyp	Umsetzungsjahr
Shopify	E-Commerce-Plattform	2019
Adobe Commerce	Digitale Storefront	2021

Versand- und Logistikunternehmen

Kirkland arbeitet mit mehreren Versand- und Logistikanbietern zusammen, um den Produktvertrieb zu verwalten.

• Primäre Logistikpartner: UPS, FedEx, USPS
• Jährliche Versandausgaben: 45–55 Millionen US-Dollar
• Prozentsatz der versandten Online-Bestellungen: 65–70 %

Marketing- und Werbeagenturen

Kirkland's arbeitet mit spezialisierten Marketingagenturen zusammen, um Markenförderungs- und Kundengewinnungsstrategien zu unterstützen.

Agenturtyp	Marketing-Fokus	Jährliches Marketingbudget
Agentur für digitales Marketing	Social Media, Suchmaschinenmarketing	8-12 Millionen Dollar
Kreative Werbeagentur	Entwicklung von Markenkampagnen	5-7 Millionen Dollar

Kirkland's, Inc. (KIRK) – Geschäftsmodell: Hauptaktivitäten

Einzelhandel mit Wohnaccessoires und Möbeln

Im Geschäftsjahr 2023 betrieb Kirkland's 393 Einzelhandelsgeschäfte in 35 Bundesstaaten. Der Gesamtnettoumsatz belief sich für das am 3. Februar 2024 endende Jahr auf 487,5 Millionen US-Dollar.

Metrisch	Wert
Gesamtzahl der Einzelhandelsgeschäfte	393
Abgedeckte Staaten	35
Jährlicher Nettoumsatz	487,5 Millionen US-Dollar

Produktdesign und Kuration

Kirkland's konzentriert sich auf die Kuratierung einzigartiger Wohndekor- und Möbelkollektionen.

• Eigenes Produktdesign-Team
• Saisonale Kollektionsaktualisierungen
• Trendgerechte Warenauswahl

Bestandsverwaltung

Der Inventarwert betrug am 3. Februar 2024 139,9 Millionen US-Dollar.

Bestandsmetrik	Wert
Gesamtbestandswert	139,9 Millionen US-Dollar
Lagerumschlagsquote	3,5x

Filialbetrieb und -erweiterung

Kirkland's verfolgt einen strategischen Ansatz bei der Filialverwaltung und selektiven Expansion.

• Durchschnittliche Ladengröße: 4.000–5.000 Quadratmeter
• Typische Filialinvestition: 250.000–350.000 US-Dollar pro Standort
• Kontinuierliche Strategie zur Filialoptimierung

Online- und Offline-Marketingstrategien

Der digitale Umsatz machte im Geschäftsjahr 2023 22,4 % des gesamten Nettoumsatzes aus.

Marketingkanal	Prozentsatz des Umsatzes
Physischer Einzelhandel	77.6%
E-Commerce	22.4%

Kirkland's, Inc. (KIRK) – Geschäftsmodell: Schlüsselressourcen

Umfangreiches Filialnetz

Ab dem Geschäftsjahr 2023 ist Kirkland's in Betrieb 448 Einzelhandelsgeschäfte in 36 Bundesstaaten der Vereinigten Staaten. Aufschlüsselung der Filialverteilung:

Region	Anzahl der Geschäfte	Prozentsatz
Südosten	187	41.7%
Südwesten	96	21.4%
Nordosten	65	14.5%
Mittlerer Westen	58	12.9%
Westen	42	9.5%

Vielfältiger Produktbestand

Aufschlüsselung der Produktkategorien für das Geschäftsjahr 2023:

• Heimdekoration: 42 %
• Möbel: 28 %
• Wanddekoration: 15 %
• Saisonartikel: 10 %
• Zubehör: 5 %

Starke Markenbekanntheit

Markenkennzahlen für Kirkland's:

• Durchschnittlicher Ladenumsatz: 1,2 Millionen US-Dollar pro Laden
• Mitgliedschaft im Kundenbindungsprogramm: 2,1 Millionen Mitglieder
• Social-Media-Follower: 750.000 auf allen Plattformen

Digitale E-Commerce-Plattform

Online-Verkaufsleistung im Geschäftsjahr 2023:

Metrisch	Wert
Gesamter E-Commerce-Umsatz	78,3 Millionen US-Dollar
Prozentsatz des Gesamtumsatzes	22%
Mobiler Website-Traffic	65%

Erfahrenes Management-Team

Zusammensetzung des Führungsteams:

• Durchschnittliche Amtszeit der Führungskräfte: 12,5 Jahre
• Erfahrung in der Einzelhandelsbranche: 87 % der Führungsqualitäten
• Interne Beförderungsquote: 63 %

Kirkland's, Inc. (KIRK) – Geschäftsmodell: Wertversprechen

Erschwingliche Inneneinrichtung und Möbel

Ab dem 4. Quartal 2023 lag die durchschnittliche Produktpreisspanne von Kirkland bei 19,99 $ bis 299,99 $. Bruttomarge: 36,7 % für die Segmente Wohndekoration und Möbel. Gesamtnettoumsatz für das Geschäftsjahr 2023: 541,8 Millionen US-Dollar.

Produktkategorie	Durchschnittliche Preisspanne	Verkaufsvolumen
Wanddekoration	$29.99 - $129.99	1,2 Millionen Einheiten
Möbel	$99.99 - $299.99	425.000 Einheiten
Dekorative Accessoires	$19.99 - $79.99	2,1 Millionen Einheiten

Trendige und einzigartige Designauswahl

Design-Aktualisierungsrate: Vierteljährliche Sammlungsaktualisierungen. Das Produktdesign-Portfolio umfasst:

• Moderner Landhausstil
• Küsten- und nautische Themen
• Minimalistische zeitgenössische Designs
• Vintage- und rustikale Kollektionen

Bequeme Einkaufserlebnisse

Kennzahlen zur Omnichannel-Präsenz:

• Physische Geschäfte: 392 Standorte
• E-Commerce-Plattform: Online-Shopping rund um die Uhr
• Downloadrate der mobilen App: 175.000 aktive Benutzer
• Anteil der Online-Verkäufe: 22,4 % des Gesamtumsatzes

Zugängliche Preispunkte

Preispositionierungsstrategie:

Preissegment	Prozentsatz der Produktmischung	Durchschnittliche Kundenausgaben
Budget	35%	$39.99
Mittelklasse	50%	$89.99
Premium	15%	$199.99

Große Auswahl an Einrichtungsprodukten

Aufschlüsselung der Produktkategorien für 2023:

• Wandkunst: 28 % des Gesamtumsatzes
• Möbel: 22 % des Gesamtumsatzes
• Wohnaccessoires: 35 % des Gesamtumsatzes
• Saisonale Dekoration: 15 % des Gesamtumsatzes

Kirkland's, Inc. (KIRK) – Geschäftsmodell: Kundenbeziehungen

Mitgliedschaft im Treueprogramm

Im Jahr 2024 hat das Insider Rewards-Programm von Kirkland 3,2 Millionen aktive Mitglieder. Das Treueprogramm bietet:

Programmfunktion	Details
Punktesammelquote	1 Punkt pro ausgegebenem Dollar
Vierteljährliche Belohnungen	Prämienzertifikat im Wert von 10 $ für jeweils 250 gesammelte Punkte
Mitgliederrabatt	10 % Rabatt auf den ersten Einkauf nach dem Beitritt

Personalisiertes E-Mail-Marketing

Die E-Mail-Marketing-Datenbank von Kirkland enthält 4,7 Millionen Abonnenten. Die durchschnittliche E-Mail-Öffnungsrate beträgt 22,6 % bei einer Klickrate von 3,8 %.

• Segmentierte E-Mail-Kampagnen, die auf bestimmte Kundendemografien abzielen
• Personalisierte Produktempfehlungen basierend auf der Kaufhistorie
• Ausgelöste E-Mail-Sequenzen zur Wiederherstellung abgebrochener Warenkörbe

Social-Media-Engagement

Plattform	Anzahl der Follower	Engagement-Rate
Instagram	287,000	2.3%
Facebook	412,000	1.9%
Pinterest	156,000	3.1%

Kundendienstunterstützung

Kirklands Kundendienstkennzahlen für 2024:

• Durchschnittliche Antwortzeit: 2,4 Stunden
• Kundenzufriedenheitsbewertung: 87 %
• Supportkanäle: Telefon, E-Mail, Live-Chat, soziale Medien

Einkaufserlebnisse im Laden und online

Kanal	Verkaufsprozentsatz	Durchschnittlicher Transaktionswert
Physische Geschäfte	68%	$85.40
Online-E-Commerce	32%	$112.60

Omnichannel-Integrationsfunktionen:

• Online kaufen, Abholung im Geschäft möglich
• Bestandstransparenz in Echtzeit
• Mobile App mit personalisierten Empfehlungen

Kirkland's, Inc. (KIRK) – Geschäftsmodell: Kanäle

Physische Einzelhandelsgeschäfte

Im dritten Quartal 2023 betrieb Kirkland's 378 Einzelhandelsgeschäfte in 35 Bundesstaaten der Vereinigten Staaten. Die gesamte Verkaufsfläche betrug etwa 1.650.000 Quadratmeter.

Store-Metrik	Daten für 2023
Gesamtzahl der Geschäfte	378
Abgedeckte Staaten	35
Gesamtaufnahme des Einzelhandelsplatzes	1.650.000 Quadratfuß

Online-E-Commerce-Website

Die E-Commerce-Plattform von Kirkland erwirtschaftete im Geschäftsjahr 2022 einen Nettoumsatz von 108,3 Millionen US-Dollar, was 24,7 % des Gesamtumsatzes des Unternehmens entspricht.

Mobile Shopping-Anwendung

Zu den Funktionen der mobilen App von Kirkland gehören:

• Bestandskontrolle in Echtzeit
• Digitale Coupon-Integration
• Personalisierte Produktempfehlungen

Social-Media-Plattformen

Plattform	Follower-Anzahl (2023)
Instagram	126,000
Facebook	342,000
Pinterest	87,000

Katalog- und Direktmarketing

Die Ausgaben für Direktmarketing beliefen sich im Geschäftsjahr 2022 auf 4,2 Millionen US-Dollar, was 1,1 % des Gesamtumsatzes des Unternehmens entspricht.

Marketingkanal	Jährliche Ausgaben	Prozentsatz des Umsatzes
Katalogverteilung	2,1 Millionen US-Dollar	0.6%
Direktmailing-Kampagnen	2,1 Millionen US-Dollar	0.5%

Kirkland's, Inc. (KIRK) – Geschäftsmodell: Kundensegmente

Hausbesitzer aus der Mittelklasse

Demographisch profile ab 2023:

Altersspanne	Haushaltseinkommen	Wohneigentum
35-54 Jahre	$75,000 - $125,000	68 % Einfamilienhäuser

Junge Berufstätige

Hauptmerkmale:

• Altersspanne: 25–39 Jahre
• Durchschnittliches Jahreseinkommen: 68.700 $
• Präferenz für städtisches und vorstädtisches Wohnen

Liebhaber der Innenarchitektur

Einblicke in das Marktsegment:

Ausgabenkategorie	Jährliche Ausgaben
Heimdekoration	2.400 $ pro Haushalt

Budgetbewusste Verbraucher

Kennzahlen zur Preissensitivität:

• Durchschnittlicher Transaktionswert: 45–75 $
• Rabattsensitivität: 62 % bevorzugen Verkäufe
• Wiederholungskaufrate: 43 %

Vorstädtische und städtische Haushalte

Geografische Verteilung:

Region	Prozentsatz des Kundenstamms
Vorstadtgebiete	56%
Städtische Gebiete	44%

Kirkland's, Inc. (KIRK) – Geschäftsmodell: Kostenstruktur

Bestandsbeschaffung

Im Geschäftsjahr 2023 betrug der Gesamtbestand von Kirkland 157,9 Millionen US-Dollar. Die Herstellungskosten (COGS) des Unternehmens beliefen sich auf etwa 386,1 Millionen US-Dollar.

Inventarkategorie	Beschaffungskosten
Heimdekoration	62,4 Millionen US-Dollar
Möbel	45,3 Millionen US-Dollar
Wanddekoration	29,7 Millionen US-Dollar
Saisonartikel	20,5 Millionen US-Dollar

Ladenbetrieb und -wartung

Im Jahr 2023 betrieb Kirkland's 378 Geschäfte mit Gesamtbelegungskosten von 71,2 Millionen US-Dollar.

• Durchschnittliche Wartungskosten für Filialen: 188.000 US-Dollar pro Filiale und Jahr
• Nebenkosten und Anlagenkosten: 29,6 Millionen US-Dollar
• Renovierung und Instandhaltung des Ladens: 12,4 Millionen US-Dollar

Löhne und Schulung der Mitarbeiter

Die gesamten Arbeitskosten für das Geschäftsjahr 2023 beliefen sich auf 147,3 Millionen US-Dollar.

Mitarbeiterkategorie	Jährliche Arbeitskosten
Einzelhandelspersonal	98,6 Millionen US-Dollar
Unternehmensmitarbeiter	36,7 Millionen US-Dollar
Schulung und Entwicklung	12 Millionen Dollar

Marketing- und Werbekosten

Die Marketingausgaben für das Geschäftsjahr 2023 beliefen sich auf insgesamt 22,7 Millionen US-Dollar.

• Digitales Marketing: 9,3 Millionen US-Dollar
• Traditionelle Werbung: 6,8 Millionen US-Dollar
• Social-Media-Kampagnen: 4,1 Millionen US-Dollar
• Werbematerialien: 2,5 Millionen US-Dollar

Lieferketten- und Logistikkosten

Die gesamten Lieferketten- und Logistikkosten beliefen sich im Jahr 2023 auf 54,6 Millionen US-Dollar.

Kategorie Logistik	Jährliche Kosten
Transport	24,3 Millionen US-Dollar
Lagerhaltung	18,7 Millionen US-Dollar
Betrieb des Vertriebszentrums	11,6 Millionen US-Dollar

Kirkland's, Inc. (KIRK) – Geschäftsmodell: Einnahmequellen

Produktverkauf im Geschäft

Gesamtnettoumsatz im Geschäftsjahr 2023: 540,7 Millionen US-Dollar

Anzahl der Filialen	Durchschnittlicher Umsatz pro Geschäft
363 Einzelhandelsgeschäfte	1,49 Millionen US-Dollar pro Geschäft

Online-E-Commerce-Transaktionen

E-Commerce-Umsatz für das Geschäftsjahr 2023: 83,8 Millionen US-Dollar

• Der Online-Umsatz machte 15,5 % des gesamten Nettoumsatzes aus
• Wachstumsstrategie für digitale Kanäle wird aktiv verfolgt

Ausverkauf und Saisonverkäufe

Saisonale Kategorie	Ungefährer Umsatzbeitrag
Urlaubsdekoration	45,2 Millionen US-Dollar
Saisonale Auffrischung Ihres Zuhauses	37,6 Millionen US-Dollar

Kollektionen von Wohnaccessoires und Möbeln

Umsatz der Produktlinie Möbel und Wohnaccessoires: 278,4 Millionen US-Dollar

• Möbelverkäufe: 132,6 Millionen US-Dollar
• Wanddekoration und Accessoires: 89,7 Millionen US-Dollar
• Saisonale Wohndekoration: 56,1 Millionen US-Dollar

Ergänzende Produktangebote

Produktkategorie	Umsatzbeitrag
Beleuchtung	42,3 Millionen US-Dollar
Teppiche	36,9 Millionen US-Dollar
Dekorative Accessoires	53,6 Millionen US-Dollar

Kirkland's, Inc. (KIRK) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Kirkland's, Inc. over competitors right now, based on the latest numbers from the first quarter of fiscal 2025.

Affordable and attainable style in home décor and furnishings

The focus on value is clear in the financial outcomes, showing the trade-off between price competitiveness and margin health. The price-to-sales ratio as of the first quarter of 2025 stood at a low 0.06. This reflects the strategy of offering accessible style, though it pressures profitability, as seen by the Q1 2025 gross profit margin falling to 24.9% from 29.5% in the prior year quarter. Net sales for that same quarter were $81.5 million.

Here's a quick look at the margin pressure tied to pricing strategy:

Metric	Q1 Fiscal 2025 Value	Q1 Fiscal 2024 Value
Gross Profit Margin	24.9%	29.5%
Net Sales	$81.5 million	$91.8 million

Curated selection across multiple home and family brands

Kirkland's, Inc. is actively pivoting to become a multi-brand retail operator, which expands the curated offering beyond the core Kirkland's Home assortment. This strategy involves maximizing partnerships with other brands.

• Expanding utilization of the Bed Bath & Beyond license.
• Expanding utilization of the Overstock license.
• Expanding utilization of the buybuy Baby license.

The company is also setting new benchmarks by accelerating the brand conversion or closure of underperforming assets to sharpen the portfolio.

Engaging in-store shopping experience

Momentum in the physical stores has been a bright spot amidst broader sales softness. While the overall comparable sales for Q1 2025 decreased by 8.9%, the physical stores showed resilience. Specifically, Kirkland's Home stores saw comparable store sales increase by approximately 3% in the month of May 2025 compared to the prior year. The store footprint is actively being managed as part of the transformation.

The store count evolution shows this right-sizing effort:

• Stores at end of Q1 2025: 314.
• Stores closed in Q1 2025: 3.
• Stores at end of Fiscal Year 2024: 317.

This focus on the physical environment is foundational to their omnichannel strategy.

Value pricing and promotional offerings

Value pricing is delivered through promotional offerings, which directly impacts merchandise margins. The lower gross profit margin of 24.9% in Q1 2025 compared to 30.3% in Q4 2024 is attributed in part to lower merchandise margins resulting from higher promotional activity. To counter this, the company is taking specific actions on inventory selection.

The company is actively eliminating inventory that does not meet margin standards:

Eliminating SKUs that do not meet margin standards after shipping, handling, and returns.

Strategically expanding product categories to drive average order value.

The need for promotional activity is evident, as the company is realigning to improve inventory productivity.

Kirkland's, Inc. (KIRK) - Canvas Business Model: Customer Relationships

Loyalty programs focused on maximizing customer lifetime value

Kirkland's, Inc. has a history with its K-club Loyalty Program, which was redesigned in Q3 of 2020 to reward loyal consumers. As of March 2021, this program boasted over 15 million members. The company views an omnichannel retail strategy focused on customer experience as foundational in building brand health and maximizing lifetime customer value. General industry statistics suggest that members of loyalty programs generate 12 to 18% more incremental revenue growth per year than non-members. Furthermore, general data indicates that 60% of US consumers will buy more often from a company they feel loyal to.

The structure of the K-club program includes benefits such as:

• Points on every purchase for rewards redemption.
• Birthday surprises and special offers.
• Monthly $500 sweepstakes entry.
• VIP shopping hours access.

High-touch in-store customer service for design ideas

Kirkland's, Inc. emphasizes creating a stimulating in-store environment and providing excellent customer service to deliver inspiration and value. The company's strategy includes re-engaging its core customer through its physical locations. While specific metrics for design idea consultations aren't public, the performance of the brick-and-mortar channel shows responsiveness to in-store efforts. For the fourth quarter of fiscal 2024, comparable brick-and-mortar store sales showed growth of 1.6%. More recently, for the month of May 2025, Kirkland's Home stores saw comparable store sales up approximately 3% versus the prior year. Industry-wide, 96% of consumers state that customer service plays a vital role in brand loyalty.

Digital engagement and personalized marketing

The company has stated it is not satisfied with its e-Commerce performance as of February 2025. The e-commerce channel experienced a decline of 7.9% in Q4 2024. This pressure continued into the first quarter of fiscal 2025, with e-commerce sales declining by 26.7% compared to Q1 2024. The Q1 2025 consolidated comparable sales decline was 8.9%, heavily weighted by the e-commerce drop. The company intends to leverage its partnership with Beyond, Inc. to enhance site experience and improve conversion. General statistics for 2025 suggest that AI-powered personalization can increase long-term value and retention by 10 to 15%.

Here is a comparison of the channel performance metrics for the fourth quarter of fiscal 2024 (13 weeks ended February 1, 2025):

Metric	Kirkland's Home Brick-and-Mortar	E-Commerce Channel	Consolidated Comparable Sales
Q4 FY2024 Change vs. Q4 FY2023	1.6% Growth	7.9% Decline	0.6% Decline

The store footprint is also part of the customer relationship strategy, as the company closed 3 stores in Q1 2025, ending the quarter with 314 stores, following a total closure of 15 stores in fiscal year 2024, ending with 317 stores. This represented a store count decline of approximately 5% year-over-year as of Q1 2025.

Kirkland's, Inc. (KIRK) - Canvas Business Model: Channels

You're looking at how Kirkland's, Inc., now moving toward The Brand House Collective, gets its products to the customer as of late 2025. The channel strategy is heavily focused on optimizing the physical footprint while aggressively expanding digital reach through new brand partnerships. The plan involves a significant consolidation of the brick-and-mortar presence.

The company is executing an operational reset, which includes closing underperforming locations to streamline the real estate portfolio. Following this consolidation, Kirkland's expects to move forward with approximately 290 of its current store locations to serve as the foundational footprint for the combined brand banners. To give you a snapshot of the recent state, at the end of the first quarter of fiscal 2025, which ended May 3, 2025, Kirkland's operated 314 total stores after closing 3 stores during that period. This physical channel is now being leveraged to support multiple brands.

Channel Strategy Component	Current/Recent Store Count (Q1 FY25)	Target/Planned Store Count (Post-Consolidation)
Total Physical Locations	314	Approximately 290
Kirkland's Home Banners	All 314 locations (pre-conversion)	Remaining Kirkland's Home locations
Bed Bath & Beyond Home Conversions (Planned through 2026)	0 (Initial launch August 2025)	Approximately 75 conversions
Physical Overstock Outposts (Planned after pilot)	0 (First location identified in Nashville)	Approximately 30 locations

The e-commerce platform, Kirklands.com, remains a core channel, though it has faced recent headwinds. For the first quarter of fiscal 2025, net sales for the entire company were $81.5 million, and this was heavily impacted by a significant drop in digital performance. Specifically, e-commerce sales saw a 26.7% decline compared to the first quarter of fiscal 2024. This contrasts with the fourth quarter of fiscal 2024, where e-commerce sales had declined by 7.9% year-over-year.

The digital distribution strategy is evolving to leverage the partnership with Beyond, Inc. (owner of the other brands) to enhance the online experience and conversion rates. You should track these digital touchpoints closely:

• Kirklands.com, which will be co-branded with Bed Bath & Beyond Home for a unified online experience.
• The new physical Overstock.com outposts, which are expected to deliver at least two times the revenue of a current Kirkland's store.
• Expansion of e-commerce presence via other digital marketplaces, including Zulily.

The expansion into other marketplaces and brand formats is a key part of the transformation. Kirkland's is capitalizing on its merchandising and sourcing teams to expand the Kirkland's Home product assortment across the expanded store network and Beyond's websites. The plan includes accelerating the launch of Bed Bath & Beyond Home stores, with the first one planned for Brentwood, Tennessee, in August 2025, followed by five more in that initial market. Furthermore, the company has identified the first Nashville location for a physical Overstock store, with plans to expand that banner to approximately 30 locations after the initial pilot. This multi-brand operator approach is defintely changing how customers interact with the merchandise.

Kirkland's, Inc. (KIRK) - Canvas Business Model: Customer Segments

You're looking at the customer base for what is now The Brand House Collective, Inc. (TBHC), formerly Kirkland's, Inc., as it integrates its new brand licenses. The customer segments are evolving from the core base to include shoppers across the newly acquired portfolio.

Value-conscious consumers seeking stylish, affordable home décor remain central, as the company continues its effort to re-engage this core customer base. This segment is motivated by the combination of quality, stylish merchandise, and value pricing that characterized the Kirkland's Home brand. Evidence of this segment's continued interest showed up in the physical stores during the first quarter of fiscal 2025; Kirkland's Home stores saw comparable store sales increase approximately 3% versus the prior year for the month of May 2025. This suggests that for the core brand, the value proposition is still resonating with shoppers, even as the overall consolidated comparable sales declined 8.9% in Q1 FY2025.

The traditional home-makers and decorators in suburban markets form the backbone of the physical footprint. As of February 17, 2025, the company operated 317 stores across 35 states. However, the strategy involves pruning underperformers; an initial list of approximately 6% of stores was identified as not meeting profitability standards in their current format. This focus on store optimization directly impacts which suburban markets the company prioritizes for its physical presence.

The newest segment is the shoppers of the newly licensed brands (Bed Bath & Beyond, buybuy Baby). The Brand House Collective is now the development engine for these banners, focusing on smaller, high-conversion formats. The first repurposed store, a small format Bed Bath & Beyond Home, opened in Nashville and generated over 250 MM impressions, leading to an uptick in traffic and customer growth. The company plans to convert over 250 additional existing locations to small format Bed Bath & Beyond stores over the next several years, and plans to open the first new BuyBuy Baby store in fiscal 2026.

Here's a quick look at the store footprint and the planned shift impacting these segments as of mid-2025:

Metric	Value/Target	Date/Period Reference
Total Stores (Pre-Transformation)	317	End of Fiscal Year 2024 (Feb 1, 2025)
Stores Open (Q1 FY2025 End)	314	May 3, 2025
Stores Identified for Closure/Conversion	Approximately 6% of footprint	February 2025
Planned Bed Bath & Beyond Conversions	Over 250 locations	Next several years
First New BuyBuy Baby Store Opening	Fiscal 2026	Planned
First Bed Bath & Beyond Home Store Size	Approximately 10,000 square feet	Post-conversion

The strategy is to capture these new customer groups by leveraging the established infrastructure and merchandising expertise of The Brand House Collective. The goal is to maximize lifetime customer value across the portfolio, which now includes Bed Bath & Beyond, buybuy Baby, and Overstock customers.

• Core Kirkland's Home customer re-engagement showing positive May 2025 in-store sales momentum.
• New Bed Bath & Beyond Home shoppers attracted by the initial small-format store opening.
• Potential for significant new customer acquisition via the planned BuyBuy Baby physical rollout.
• The company is actively managing the store base, closing or converting locations that do not meet profitability standards.

Kirkland's, Inc. (KIRK) - Canvas Business Model: Cost Structure

You're looking at the cost side of the business model for Kirkland's, Inc. as of mid-2025, which is heavily influenced by the transformation efforts and the challenging sales environment seen in the first quarter of fiscal year 2025 (Q1 FY25).

Cost of Goods Sold (COGS), impacted by promotional activity

The cost of the product itself, COGS, has been under pressure. For Q1 FY25, the Gross Profit Margin landed at 24.9% of net sales, a notable step down from 29.5% in the prior year quarter. This compression directly impacts the cost structure. The decline in margin was explicitly attributed to lower merchandise margins resulting from higher promotional activity, alongside the deleverage effect from store occupancy costs. With Q1 FY25 net sales at $81.5 million and gross profit at $20.3 million, the calculated Cost of Sales (COGS) for the period was $61.2 million.

Here's a quick look at the key cost components for Q1 FY25 versus the prior year:

Financial Metric	Q1 FY25 Amount	Q1 FY24 Amount
Net Sales	$81.5 million	$91.8 million
Gross Profit	$20.3 million	$27.1 million
Gross Profit Margin	24.9%	29.5%
Cost of Sales (COGS)	$61.2 million	(Calculated)

Store occupancy costs (deleverage due to lower sales is a factor)

Store occupancy costs, which include rent and related expenses, are a fixed component that becomes more burdensome when sales drop. In Q4 FY24, for instance, store occupancy costs actually increased 50 basis points as a percentage of sales, which management directly tied to the deleverage from the sales decline. This deleveraging effect, where fixed costs take up a larger slice of a smaller revenue pie, was also cited as a factor contributing to the lower Gross Profit Margin in Q1 FY25.

Operating expenses (compensation, advertising, consulting) of $30.8 million in Q1 FY25

Kirkland's, Inc. successfully managed to reduce the absolute dollar amount of its operating expenses in Q1 FY25, even as sales fell. Total operating expenses for the quarter were $30.8 million, representing 37.8% of net sales. This is an improvement from the $34.6 million, or 37.7% of net sales, reported in the first quarter of fiscal 2024.

The reduction in dollar spend was driven by specific cuts across several key areas:

• Lower store and corporate compensation and benefits expenses.
• Reduced advertising costs.
• Lower consulting costs.

Compensation and benefits expenses specifically fell by 7.4% to $17.9 million in Q1 FY25. It's a clear sign of cost-cutting in action, though the percentage of sales remained relatively flat year-over-year for operating expenses.

Distribution and logistics costs

Distribution and logistics costs, particularly outbound freight, provided a partial offset to the margin pressure in Q1 FY25. Management noted that lower outbound freight costs partially mitigated the negative impact from higher promotional activity and store occupancy deleverage on the gross profit line. This suggests active management of the supply chain costs, which is critical given the e-commerce segment's significant sales decline of 26.7% in that same quarter.

Finance: draft 13-week cash view by Friday.

Kirkland's, Inc. (KIRK) - Canvas Business Model: Revenue Streams

You're looking at how Kirkland's, Inc. is bringing in cash as of late 2025. It's a mix of traditional retail performance and one-off asset sales that really shape the top line. Honestly, the revenue picture is a tale of two channels right now.

The primary engine remains net sales from physical store transactions. You saw this play out in the fourth quarter of fiscal 2024, where the brick-and-mortar side delivered a positive comparable store sales increase of 1.6%. That's a win in a tough environment, showing the core physical customer base is still showing up. For that same Q4 FY24 period, net sales totaled $148.9 million.

However, the digital side has been a headwind. For the first quarter of fiscal 2025, e-commerce net sales saw a significant drop, declining by 26.7%. This steep drop contributed to the overall consolidated comparable sales decline of 8.9% for Q1 FY'25, even as the physical stores showed some resilience.

Here's a quick look at how those sales components stacked up in the most recently reported periods. I put the Q4 FY24 figures next to the Q1 FY25 performance metrics for context.

Metric	Period	Value
Net Sales	Q4 FY24	$148.9 million
Comparable Store Sales Growth	Q4 FY24	1.6%
E-commerce Sales Change	Q4 FY24	decreased 7.9%
Net Sales	Q1 FY25	$81.5 million
E-commerce Sales Change	Q1 FY25	declined 26.7%
Consolidated Comparable Sales Change	Q1 FY25	decreased 8.9%

Then you have the non-recurring, but significant, IP monetization. Kirkland's, Inc., through its parent entity, saw a notable cash event with the sale of the Kirkland's Home IP. Specifically, there was a $10 million sale of Kirkland's Home IP to BBBY (Bed Bath & Beyond, Inc.). This type of transaction provides a non-operational boost to the financials, which is important when core retail sales are fluctuating.

Looking at the bigger picture, the Total Trailing Twelve Month (TTM) Revenue as of December 2025 stands at $0.43 Billion USD. That number reflects the cumulative performance across all channels leading up to that point. To be fair, some sources cite a slightly more precise figure of $420.61 million for the TTM revenue, but we'll stick to the rounded figure for the canvas block.

You should also track these related financial data points that feed into the revenue picture:

• Gross profit margin for Q4 FY24 was 30.3%.
• Gross profit margin for Q1 FY25 was 24.9%.
• The company ended Q4 FY24 with 317 stores after closing 15 locations in the fiscal year.
• The TTM Operating Margin as of late 2025 is reported at -4.84%.

Finance: draft 13-week cash view by Friday.