Kirkland's, Inc. (KIRK): Canvas del Modelo de Negocio [Actualizado en Ene-2025]

Sumérgete en el plan estratégico de Kirkland's, Inc. (KIRK), un minorista de decoración para el hogar que ha creado magistralmente un modelo de negocio que combina un estilo asequible con estrategias minoristas innovadoras. Desde su extensa red de tiendas físicas hasta una sólida plataforma de comercio electrónico, Kirkland's se ha posicionado como un destino de referencia para los consumidores conscientes del presupuesto que buscan muebles de casas de moda. Descubra cómo esta potencia minorista navega por el panorama competitivo de la decoración del hogar, aprovechando las asociaciones clave, las propuestas de valor únicas y un enfoque multicanal que resuena con los propietarios de clase media y los entusiastas del diseño.

Kirkland's, Inc. (KIRK) - Modelo de negocios: asociaciones clave

Fabricantes de decoración y muebles para el hogar

Kirkland se asocia con múltiples fabricantes para obtener productos de decoración y muebles para el hogar. A partir de 2023, la compañía informó trabajar con aproximadamente 200-250 socios de fabricación diferentes a nivel mundial.

Tipo de fabricante	Número de socios	Origen geográfico
Fabricantes nacionales	75-100	Estados Unidos
Fabricantes internacionales	125-150	China, Vietnam, India

Proveedores y distribuidores mayoristas

Kirkland mantiene relaciones estratégicas con proveedores mayoristas para garantizar un inventario constante de productos y precios competitivos.

• Red total de proveedores mayoristas: 50-75 socios
• Valor de adquisición anual: aproximadamente $ 180-220 millones
• Duración promedio de la relación del proveedor: 3-5 años

Proveedores de plataforma de comercio electrónico

Kirkland colabora con los proveedores de plataformas digitales para mejorar las capacidades minoristas en línea.

Proveedor de plataforma	Tipo de servicio	Año de implementación
Shop	Plataforma de comercio electrónico	2019
Adobe Commerce	Escaparate digital	2021

Empresas de envío y logística

Kirkland se asocia con múltiples proveedores de envío y logística para administrar la distribución de productos.

• Partners de logística primaria: UPS, FedEx, USPS
• Gastos de envío anuales: $ 45-55 millones
• Porcentaje de pedidos en línea enviados: 65-70%

Agencias de marketing y publicidad

Kirkland se involucra con agencias de marketing especializadas para apoyar la promoción de la marca y las estrategias de adquisición de clientes.

Tipo de agencia	Enfoque de marketing	Presupuesto anual de marketing
Agencia de marketing digital	Redes sociales, marketing de motores de búsqueda	$ 8-12 millones
Agencia de publicidad creativa	Desarrollo de campaña de marca	$ 5-7 millones

Kirkland's, Inc. (KIRK) - Modelo de negocio: actividades clave

Venta de decoración y muebles para el hogar minorista

A partir del año fiscal 2023, Kirkland operaba 393 tiendas minoristas en 35 estados. Las ventas netas totales fueron de $ 487.5 millones para el año que finalizó el 3 de febrero de 2024.

Métrico	Valor
Total de tiendas minoristas	393
Estados cubiertos	35
Ventas netas anuales	$ 487.5 millones

Diseño y curación del producto

Kirkland's se centra en curar colecciones únicas de decoración y muebles para el hogar.

• Equipo de diseño de productos patentado
• Actualizaciones de colección estacionales
• Selección de mercancías que responde a tendencias

Gestión de inventario

El valor de inventario al 3 de febrero de 2024 fue de $ 139.9 millones.

Métrico de inventario	Valor
Valor de inventario total	$ 139.9 millones
Relación de rotación de inventario	3.5x

Operaciones de almacenamiento y expansión

Kirkland mantiene un enfoque estratégico para la gestión de las tiendas y la expansión selectiva.

• Tamaño promedio de la tienda: 4,000-5,000 pies cuadrados
• Inversión típica de la tienda: $ 250,000- $ 350,000 por ubicación
• Estrategia de optimización de la tienda en curso

Estrategias de marketing en línea y fuera de línea

Las ventas digitales representaron el 22.4% de las ventas netas totales en el año fiscal 2023.

Canal de marketing	Porcentaje de ventas
Minorista física	77.6%
Comercio electrónico	22.4%

Kirkland's, Inc. (KIRK) - Modelo de negocio: recursos clave

Extensa red de tiendas minoristas

A partir del año fiscal 2023, Kirkland operó 448 tiendas minoristas En 36 estados en los Estados Unidos. Desglose de distribución de la tienda:

Región	Número de tiendas	Porcentaje
Sudeste	187	41.7%
Suroeste	96	21.4%
Nordeste	65	14.5%
Medio oeste	58	12.9%
Oeste	42	9.5%

Inventario de productos diversos

Desglose de categoría de productos para el año fiscal 2023:

• Decoración del hogar: 42%
• Muebles: 28%
• Decoración de la pared: 15%
• Artículos estacionales: 10%
• Accesorios: 5%

Reconocimiento de marca fuerte

Métricas de marca para Kirkland:

• Ingresos promedio de la tienda: $ 1.2 millones por tienda
• Membresía del programa de fidelización del cliente: 2.1 millones de miembros
• Seguidores de redes sociales: 750,000 en todas las plataformas

Plataforma digital de comercio electrónico

Rendimiento de ventas en línea en el año fiscal 2023:

Métrico	Valor
Ingresos totales de comercio electrónico	$ 78.3 millones
Porcentaje de ventas totales	22%
Tráfico del sitio web móvil	65%

Equipo de gestión experimentado

Composición del equipo de liderazgo:

• Promedio de tenencia ejecutiva: 12.5 años
• Experiencia de la industria minorista: 87% del liderazgo
• Tasa de promoción interna: 63%

Kirkland's, Inc. (KIRK) - Modelo de negocio: propuestas de valor

Decoración y muebles para el hogar asequibles

A partir del cuarto trimestre de 2023, el rango promedio de precios del producto de Kirkland: $ 19.99 - $ 299.99. Margen bruto: 36.7% para decoración del hogar y segmentos de muebles. Ventas netas totales para 2023 año fiscal: $ 541.8 millones.

Categoría de productos	Rango de precios promedio	Volumen de ventas
Decoración de la pared	$29.99 - $129.99	1,2 millones de unidades
Muebles	$99.99 - $299.99	425,000 unidades
Accesorios decorativos	$19.99 - $79.99	2.1 millones de unidades

Selecciones de diseño de moda y únicas

Tasa de actualización de diseño: actualizaciones trimestrales de la colección. La cartera de diseño de productos incluye:

• Estilos modernos de casa de campo
• Temas costeros y náuticos
• Diseños contemporáneos minimalistas
• Colecciones vintage y rústicas

Experiencias de compra convenientes

Métricas de presencia omnicanal:

• Tiendas físicas: 392 ubicaciones
• Plataforma de comercio electrónico: compras en línea 24/7
• Tasa de descarga de la aplicación móvil: 175,000 usuarios activos
• Porcentaje de ventas en línea: 22.4% de los ingresos totales

Puntos de precio accesibles

Estrategia de posicionamiento de precios:

Segmento de precios	Porcentaje de mezcla de productos	Gasto promedio del cliente
Presupuesto	35%	$39.99
De rango medio	50%	$89.99
De primera calidad	15%	$199.99

Amplia gama de productos para muebles para el hogar

Desglose de categoría de productos para 2023:

• Arte de pared: 28% de las ventas totales
• Muebles: 22% de las ventas totales
• Accesorios para el hogar: 35% de las ventas totales
• Decoración estacional: 15% de las ventas totales

Kirkland's, Inc. (KIRK) - Modelo de negocios: relaciones con los clientes

Membresía del programa de fidelización

A partir de 2024, el programa Insider Rewards de Kirkland tiene 3.2 millones de miembros activos. El programa de fidelización ofrece:

Característica del programa	Detalles
Tasa de ingresos de puntos	1 punto por $ 1 gastado
Recompensas trimestrales	Certificado de recompensa de $ 10 por cada 250 puntos acumulados
Descuento para miembros	10% de descuento por primera compra después de unirse

Marketing por correo electrónico personalizado

La base de datos de marketing por correo electrónico de Kirkland contiene 4.7 millones de suscriptores. Las tasas de apertura de correo electrónico promedio son del 22.6% con una tasa de clics del 3.8%.

• Campañas de correo electrónico segmentadas dirigidas a la demografía específica de los clientes
• Recomendaciones de productos personalizadas basadas en el historial de compras
• Secuencias de correo electrónico activadas para la recuperación del carrito abandonado

Compromiso de las redes sociales

Plataforma	Recuento de seguidores	Tasa de compromiso
Instagram	287,000	2.3%
Facebook	412,000	1.9%
Pinterest	156,000	3.1%

Apoyo al cliente

Las métricas de servicio al cliente de Kirkland para 2024:

• Tiempo de respuesta promedio: 2.4 horas
• Calificación de satisfacción del cliente: 87%
• Canales de soporte: teléfono, correo electrónico, chat en vivo, redes sociales

Experiencias de compras en la tienda y en línea

Canal	Porcentaje de ventas	Valor de transacción promedio
Tiendas físicas	68%	$85.40
Comercio electrónico en línea	32%	$112.60

Características de integración omnicanal:

• Compre en línea, opción de recogida en la tienda
• Visibilidad de inventario en tiempo real
• Aplicación móvil con recomendaciones personalizadas

Kirkland's, Inc. (KIRK) - Modelo de negocios: canales

Tiendas minoristas físicas

A partir del tercer trimestre de 2023, Kirkland operaba 378 tiendas minoristas en 35 estados en los Estados Unidos. Los pies cuadrados totales totales fueron de aproximadamente 1,650,000 pies cuadrados.

Métrica de almacenamiento	2023 datos
Total de las tiendas	378
Estados cubiertos	35
Total de metros cuadrados de cuadras minoristas	1,650,000 pies cuadrados

Sitio web de comercio electrónico en línea

La plataforma de comercio electrónico de Kirkland generó $ 108.3 millones en ventas netas durante el año fiscal 2022, lo que representa el 24.7% de los ingresos totales de la compañía.

Aplicación de compras móviles

Las características de la aplicación móvil de Kirkland incluyen:

• Verificación de inventario en tiempo real
• Integración de cupón digital
• Recomendaciones de productos personalizadas

Plataformas de redes sociales

Plataforma	Conteo de seguidores (2023)
Instagram	126,000
Facebook	342,000
Pinterest	87,000

Catálogo y marketing directo

El gasto de marketing directo en el año fiscal 2022 fue de $ 4.2 millones, lo que representa el 1.1% de los ingresos totales de la compañía.

Canal de marketing	Gasto anual	Porcentaje de ingresos
Distribución de catálogo	$ 2.1 millones	0.6%
Campañas de correo directo	$ 2.1 millones	0.5%

Kirkland's, Inc. (KIRK) - Modelo de negocios: segmentos de clientes

Propietarios de clase media

Demográfico profile A partir de 2023:

Rango de edad	Ingresos del hogar	Propiedad de la vivienda
35-54 años	$75,000 - $125,000	68% de casas unifamiliares

Jóvenes profesionales

Características clave:

• Rango de edad: 25-39 años
• Ingresos anuales promedio: $ 68,700
• Preferencia de vivienda urbana y suburbana

Entusiastas del diseño de interiores

Insights de segmento de mercado:

Categoría de gasto	Gasto anual
Decoración del hogar	$ 2,400 por hogar

Consumidores conscientes del presupuesto

Métricas de sensibilidad de precios:

• Valor de transacción promedio: $ 45- $ 75
• Sensibilidad de descuento: el 62% prefiere las ventas
• Repita la tasa de compra: 43%

Hogares suburbanos y urbanos

Distribución geográfica:

Región	Porcentaje de la base de clientes
Áreas suburbanas	56%
Áreas urbanas	44%

Kirkland's, Inc. (KIRK) - Modelo de negocio: Estructura de costos

Adquisición de inventario

A partir del año fiscal 2023, el inventario total de Kirkland fue de $ 157.9 millones. El costo de los bienes de la Compañía vendidos (COGS) fue de aproximadamente $ 386.1 millones.

Categoría de inventario	Costo de adquisición
Decoración del hogar	$ 62.4 millones
Muebles	$ 45.3 millones
Decoración de la pared	$ 29.7 millones
Artículos estacionales	$ 20.5 millones

Almacenar operaciones y mantenimiento

En 2023, Kirkland operó 378 tiendas con gastos de ocupación totales de $ 71.2 millones.

• Costo promedio de mantenimiento de la tienda: $ 188,000 por tienda anualmente
• Gastos de servicios públicos y de instalaciones: $ 29.6 millones
• Renovación y mantenimiento de la tienda: $ 12.4 millones

Salario de empleados y capacitación

Los costos laborales totales para el año fiscal 2023 fueron de $ 147.3 millones.

Categoría de empleado	Costo laboral anual
Personal minorista	$ 98.6 millones
Empleados corporativos	$ 36.7 millones
Capacitación y desarrollo	$ 12 millones

Gastos de marketing y publicidad

El gasto de marketing para el año fiscal 2023 totalizaron $ 22.7 millones.

• Marketing digital: $ 9.3 millones
• Publicidad tradicional: $ 6.8 millones
• Campañas de redes sociales: $ 4.1 millones
• Materiales promocionales: $ 2.5 millones

Costos de cadena de suministro y logística

La cadena de suministro total y los gastos de logística para 2023 fueron de $ 54.6 millones.

Categoría de logística	Costo anual
Transporte	$ 24.3 millones
Almacenamiento	$ 18.7 millones
Operaciones del centro de distribución	$ 11.6 millones

Kirkland's, Inc. (KIRK) - Modelo de negocios: flujos de ingresos

Venta de productos en la tienda

Año fiscal 2023 Ventas netas totales: $ 540.7 millones

Recuento de tiendas	Ventas promedio por tienda
363 tiendas minoristas	$ 1.49 millones por tienda

Transacciones de comercio electrónico en línea

Ventas de comercio electrónico para el año fiscal 2023: $ 83.8 millones

• Las ventas en línea representaron el 15.5% de las ventas netas totales
• Estrategia de crecimiento del canal digital perseguido activamente

Autorización y ventas estacionales

Categoría estacional	Contribución de ingresos aproximados
Decoración navideña	$ 45.2 millones
Actualización del hogar estacional	$ 37.6 millones

Decoración del hogar y colecciones de muebles

Ingresos de la línea de productos de muebles y decoración del hogar: $ 278.4 millones

• Venta de muebles: $ 132.6 millones
• Decoración y accesorios de pared: $ 89.7 millones
• Decoración del hogar estacional: $ 56.1 millones

Ofertas de productos complementarios

Categoría de productos	Contribución de ingresos
Iluminación	$ 42.3 millones
Alfombras	$ 36.9 millones
Accesorios decorativos	$ 53.6 millones

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.