Kirkland's, Inc. (Kirk): Modelo de Negócios Canvas [Jan-2025 Atualizado]

Mergulhe no plano estratégico da Kirkland's, Inc. (Kirk), um varejista de decoração de casa que criou magistralmente um modelo de negócios misturando estilo acessível com estratégias inovadoras de varejo. De sua extensa rede de lojas físicas a uma plataforma robusta de comércio eletrônico, a Kirkland's se posicionou como um destino preferido para os consumidores preocupados com o orçamento que buscam móveis de casa modernos. Descubra como essa potência de varejo navega no cenário competitivo da decoração da casa, alavancando parcerias-chave, proposições de valor exclusivas e uma abordagem multicanal que ressoa com proprietários de casas de classe média e entusiastas do design.

Kirkland's, Inc. (Kirk) - Modelo de negócios: Parcerias -chave

Fabricantes de decoração e móveis de casa

A Kirkland da Kirkland é parceira com vários fabricantes para obter produtos de decoração e móveis de origem. A partir de 2023, a empresa relatou trabalhar com aproximadamente 200-250 parceiros de fabricação diferentes em todo o mundo.

Tipo de fabricante	Número de parceiros	Origem geográfica
Fabricantes domésticos	75-100	Estados Unidos
Fabricantes internacionais	125-150	China, Vietnã, Índia

Fornecedores e distribuidores por atacado

A Kirkland's mantém relacionamentos estratégicos com fornecedores por atacado para garantir um inventário consistente de produtos e preços competitivos.

• Rede total de fornecedores por atacado: 50-75 parceiros
• Valor anual de compras: aproximadamente US $ 180-220 milhões
• Duração média do relacionamento do fornecedor: 3-5 anos

Provedores de plataforma de comércio eletrônico

A Kirkland colabora com os provedores de plataformas digitais para aprimorar os recursos de varejo on -line.

Provedor de plataforma	Tipo de serviço	Ano de implementação
Shopify	Plataforma de comércio eletrônico	2019
Adobe Commerce	Store Digital Front	2021

Empresas de remessa e logística

A Kirkland da Kirkland é parceira com vários provedores de remessa e logística para gerenciar a distribuição de produtos.

• Parceiros de logística primária: UPS, FedEx, USPS
• Despesas de remessa anual: US $ 45-55 milhões
• Porcentagem de pedidos on-line enviados: 65-70%

Agências de marketing e publicidade

A Kirkland se envolve com agências de marketing especializadas para apoiar estratégias de promoção de marcas e aquisição de clientes.

Tipo de agência	Foco de marketing	Orçamento anual de marketing
Agência de marketing digital	Mídia social, marketing de mecanismo de pesquisa	US $ 8-12 milhões
Agência de publicidade criativa	Desenvolvimento de campanhas da marca	US $ 5-7 milhões

Kirkland's, Inc. (Kirk) - Modelo de negócios: Atividades -chave

Vendas de decoração de casa e móveis de varejo

No ano fiscal de 2023, as 393 lojas de varejo de Kirkland operavam em 35 estados. As vendas líquidas totais foram de US $ 487,5 milhões para o ano que terminou em 3 de fevereiro de 2024.

Métrica	Valor
Total de lojas de varejo	393
Estados cobertos	35
Vendas líquidas anuais	US $ 487,5 milhões

Design de produto e curadoria

O Kirkland's se concentra em curar a decoração e coleções de móveis exclusivas.

• Equipe de design de produtos proprietários
• Atualizações de coleção sazonal
• Seleção de mercadorias responsivas a tendências

Gerenciamento de inventário

O valor do estoque em 3 de fevereiro de 2024, era de US $ 139,9 milhões.

Métrica de inventário	Valor
Valor total do inventário	US $ 139,9 milhões
Taxa de rotatividade de inventário	3.5x

Operações de loja e expansão

A Kirkland's mantém uma abordagem estratégica para o gerenciamento de lojas e a expansão seletiva.

• Tamanho médio da loja: 4.000-5.000 pés quadrados
• Investimento típico da loja: US $ 250.000 a US $ 350.000 por local
• Estratégia de otimização de lojas em andamento

Estratégias de marketing online e offline

As vendas digitais representaram 22,4% do total de vendas líquidas no ano fiscal de 2023.

Canal de marketing	Porcentagem de vendas
Varejo físico	77.6%
Comércio eletrônico	22.4%

Kirkland's, Inc. (Kirk) - Modelo de negócios: Recursos -chave

Extensa rede de lojas de varejo

Até o ano fiscal de 2023, Kirkland's operou 448 lojas de varejo em 36 estados nos Estados Unidos. Distribuição de armazenamento Distribuição:

Região	Número de lojas	Percentagem
Sudeste	187	41.7%
Sudoeste	96	21.4%
Nordeste	65	14.5%
Centro -Oeste	58	12.9%
Oeste	42	9.5%

Inventário diversificado de produtos

Redução da categoria de produto para o ano fiscal de 2023:

• Decoração de casa: 42%
• Móveis: 28%
• Decoração de parede: 15%
• Itens sazonais: 10%
• Acessórios: 5%

Forte reconhecimento de marca

Métricas de marca para Kirkland's:

• Receita média da loja: US $ 1,2 milhão por loja
• Associação do Programa de Fidelidade do Cliente: 2,1 milhões de membros
• Seguidores de mídia social: 750.000 entre plataformas

Plataforma digital de comércio eletrônico

Desempenho de vendas on -line no ano fiscal de 2023:

Métrica	Valor
Receita total de comércio eletrônico	US $ 78,3 milhões
Porcentagem de vendas totais	22%
Tráfego do site móvel	65%

Equipe de gerenciamento experiente

Composição da equipe de liderança:

• PRODIÇÃO EXECUTIVO Média: 12,5 anos
• Experiência do setor de varejo: 87% da liderança
• Taxa de promoção interna: 63%

Kirkland's, Inc. (Kirk) - Modelo de Negócios: Proposições de Valor

Decoração e móveis acessíveis

A partir do quarto trimestre 2023, a faixa média de preço do produto da Kirkland: US $ 19,99 - US $ 299,99. Margem bruta: 36,7% para segmentos de decoração e móveis de casa. Vendas líquidas totais para 2023 ano fiscal: US $ 541,8 milhões.

Categoria de produto	Faixa de preço médio	Volume de vendas
Decoração de parede	$29.99 - $129.99	1,2 milhão de unidades
Mobília	$99.99 - $299.99	425.000 unidades
Acessórios decorativos	$19.99 - $79.99	2,1 milhões de unidades

Seleções de design modernas e exclusivas

Design Taxa de atualização: atualizações trimestrais de cobrança. O portfólio de design de produtos inclui:

• Estilos modernos da fazenda
• Temas costeiros e náuticos
• Designs contemporâneos minimalistas
• Coleções vintage e rústicas

Experiências de compras convenientes

Métricas de presença omnichannel:

• Lojas físicas: 392 locais
• Plataforma de comércio eletrônico: compras online 24/7
• Taxa de download de aplicativos móveis: 175.000 usuários ativos
• Porcentagem de vendas on -line: 22,4% da receita total

Preços acessíveis

Estratégia de posicionamento de preços:

Segmento de preços	Porcentagem de mix de produtos	Gasto médio do cliente
Orçamento	35%	$39.99
Intervalo intermediário	50%	$89.99
Premium	15%	$199.99

Ampla gama de produtos de móveis domésticos

Redução da categoria de produto para 2023:

• Arte da parede: 28% do total de vendas
• Móveis: 22% do total de vendas
• Acessórios para casa: 35% do total de vendas
• Decoração sazonal: 15% do total de vendas

Kirkland's, Inc. (Kirk) - Modelo de Negócios: Relacionamentos do Cliente

Associação do programa de fidelidade

Em 2024, o Programa Insider Rewards da Kirkland possui 3,2 milhões de membros ativos. O programa de fidelidade oferece:

Recurso do programa	Detalhes
Taxa de ganho de pontos	1 ponto por US $ 1 gasto
Recompensas trimestrais	Certificado de recompensa de US $ 10 para cada 250 pontos acumulados
Desconto do membro	10% de desconto na primeira compra depois de ingressar

Marketing por e -mail personalizado

O banco de dados de marketing por email da Kirkland contém 4,7 milhões de assinantes. As taxas médias de abertura de email são 22,6%, com uma taxa de cliques de 3,8%.

• Campanhas de email segmentadas direcionando demografia específica de clientes
• Recomendações personalizadas de produtos com base no histórico de compras
• Sequências de email acionadas para recuperação de carrinho abandonada

Engajamento da mídia social

Plataforma	Contagem de seguidores	Taxa de engajamento
Instagram	287,000	2.3%
Facebook	412,000	1.9%
Pinterest	156,000	3.1%

Suporte ao atendimento ao cliente

As métricas de atendimento ao cliente da Kirkland para 2024:

• Tempo médio de resposta: 2,4 horas
• Classificação de satisfação do cliente: 87%
• Canais de suporte: telefone, e -mail, chat ao vivo, mídia social

Experiências de compras na loja e online

Canal	Porcentagem de vendas	Valor médio da transação
Lojas físicas	68%	$85.40
Comércio eletrônico online	32%	$112.60

Recursos de integração omnichannel:

• Compre online, opção de coleta na loja
• Visibilidade do inventário em tempo real
• Aplicativo móvel com recomendações personalizadas

Kirkland's, Inc. (Kirk) - Modelo de Negócios: Canais

Lojas de varejo físico

No terceiro trimestre de 2023, a Kirkland operava 378 lojas de varejo em 35 estados nos Estados Unidos. A metragem quadrada total de varejo foi de aproximadamente 1.650.000 pés quadrados.

Métrica da loja	2023 dados
Total de lojas	378
Estados cobertos	35
Quadra quadrada total de varejo	1.650.000 pés quadrados

Site online de comércio eletrônico

A plataforma de comércio eletrônico da Kirkland gerou US $ 108,3 milhões em vendas líquidas durante o ano fiscal de 2022, representando 24,7% da receita total da empresa.

Aplicativo de compra móvel

Os recursos do aplicativo móvel de Kirkland incluem:

• Verificação de inventário em tempo real
• Integração de cupom digital
• Recomendações de produtos personalizados

Plataformas de mídia social

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

Catálogo e marketing direto

As despesas de marketing direto no ano fiscal de 2022 foram de US $ 4,2 milhões, representando 1,1% da receita total da empresa.

Canal de marketing	Gastos anuais	Porcentagem de receita
Distribuição do catálogo	US $ 2,1 milhões	0.6%
Campanhas de mala direta	US $ 2,1 milhões	0.5%

Kirkland's, Inc. (Kirk) - Modelo de negócios: segmentos de clientes

Proprietários de casas de classe média

Demográfico profile a partir de 2023:

Faixa etária	Renda familiar	Propriedade da casa
35-54 anos	$75,000 - $125,000	68% de casas unifamiliares

Jovens profissionais

Características -chave:

• Faixa etária: 25-39 anos
• Renda anual média: US $ 68.700
• Preferência de habitação urbana e suburbana

Entusiastas do design de interiores

Insights do segmento de mercado:

Categoria de gastos	Despesas anuais
Decoração da casa	US $ 2.400 por família

Consumidores conscientes do orçamento

Métricas de sensibilidade ao preço:

• Valor médio da transação: $ 45- $ 75
• Sensibilidade com desconto: 62% preferem vendas
• Repita taxa de compra: 43%

Famílias suburbanas e urbanas

Distribuição geográfica:

Região	Porcentagem de base de clientes
Áreas suburbanas	56%
Áreas urbanas	44%

Kirkland's, Inc. (Kirk) - Modelo de negócios: estrutura de custos

Compras de inventário

No ano fiscal de 2023, o inventário total de Kirkland era de US $ 157,9 milhões. O custo de mercadorias da empresa vendido (COGS) foi de aproximadamente US $ 386,1 milhões.

Categoria de inventário	Custo de compras
Decor de casa	US $ 62,4 milhões
Mobília	US $ 45,3 milhões
Decoração de parede	US $ 29,7 milhões
Itens sazonais	US $ 20,5 milhões

Operações e manutenção da loja

Em 2023, as 378 lojas da Kirkland operavam as despesas totais de ocupação de US $ 71,2 milhões.

• Custo médio de manutenção da loja: US $ 188.000 por loja anualmente
• Despesas de serviços públicos e instalações: US $ 29,6 milhões
• Renovação e manutenção da loja: US $ 12,4 milhões

Salários e treinamento de funcionários

Os custos totais da mão -de -obra para o ano fiscal de 2023 foram de US $ 147,3 milhões.

Categoria de funcionários	Custo da mão -de -obra anual
Equipe de varejo	US $ 98,6 milhões
Funcionários corporativos	US $ 36,7 milhões
Treinamento e desenvolvimento	US $ 12 milhões

Despesas de marketing e publicidade

As despesas de marketing para o ano fiscal de 2023 totalizaram US $ 22,7 milhões.

• Marketing Digital: US $ 9,3 milhões
• Publicidade tradicional: US $ 6,8 milhões
• Campanhas de mídia social: US $ 4,1 milhões
• Materiais promocionais: US $ 2,5 milhões

Custos de cadeia de suprimentos e logística

As despesas totais da cadeia de suprimentos e logística de 2023 foram de US $ 54,6 milhões.

Categoria de logística	Custo anual
Transporte	US $ 24,3 milhões
Armazenamento	US $ 18,7 milhões
Operações do centro de distribuição	US $ 11,6 milhões

Kirkland's, Inc. (Kirk) - Modelo de negócios: fluxos de receita

Vendas de produtos na loja

Ano fiscal 2023 Vendas líquidas totais: US $ 540,7 milhões

Contagem de lojas	Vendas médias por loja
363 lojas de varejo	US $ 1,49 milhão por loja

Transações de comércio eletrônico online

Vendas de comércio eletrônico para o ano fiscal de 2023: US $ 83,8 milhões

• As vendas on -line representaram 15,5% do total de vendas líquidas
• A estratégia de crescimento do canal digital seguiu ativamente

Autorização e vendas sazonais

Categoria sazonal	Contribuição aproximada da receita
Decoração de férias	US $ 45,2 milhões
Refresh em casa sazonal	US $ 37,6 milhões

Coleções de decoração e móveis de casa

Receita da linha de produtos de móveis e decoração de casa: US $ 278,4 milhões

• Vendas de móveis: US $ 132,6 milhões
• Decoração de parede e acessórios: US $ 89,7 milhões
• Decoração de casa sazonal: US $ 56,1 milhões

Ofertas de produtos complementares

Categoria de produto	Contribuição da receita
Iluminação	US $ 42,3 milhões
Tapetes	US $ 36,9 milhões
Acessórios decorativos	US $ 53,6 milhões

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.