Kirkland's Stock

Kirkland's, Inc. operates as a specialty retailer of home decor and furnishings in the United States.

As of January 28, 2023, the company operated stores in 35 states, as well as an e-commerce website, www.kirklands.com, under the Kirkland's Home brand. The company provides its customers with an engaging shopping experience characterized by a curated, affordable selection of home furnishings along with inspirational design ideas.

The company's merchandise categories include holiday decor, furniture, textiles, ornamental wall decor, art, decorative accessories, mirrors, home fragrance, housewares, lighting, floral, outdoor, and gift. The company partners with three sourcing agents that assist with sourcing activities in China, India, Southeast Asia, and Europe. Its merchandise comes from numerous foreign and domestic manufacturers and importers.

The company has multiple online fulfillment options, including delivery to the customer's home directly from its warehouses or from vendors, ship-to-store and buy online, and pickup in-store programs.

Strategy

The key elements of the company's strategy are to focus on becoming a true home furnishings retailer offering product categories for the whole home; acquire new customers and extend its brand reach, while maintaining and strengthening its existing customer base; and improve its website platform to provide an engaging shopping experience for its customers, which includes an improved checkout process and enhanced search functionality. The company's strategy is to continue to diversify sourcing opportunities and minimize risks to gain competitive advantages through a streamlined process.

Real Estate

The company operates stores, including 'power' strip or 'lifestyle' centers, freestanding locations, mall locations, and outlet centers.

Distribution and Logistics

The company's main retail distribution center in Jackson, Tennessee services approximately 71% of its stores, and a third-party operated retail fulfillment facility in Lancaster, Texas services the other 29% of its stores. The company's main Jackson, Tennessee retail distribution center also supports its e-commerce fulfillment along with its two smaller e-commerce order fulfillment centers in North Las Vegas, Nevada and Winchester, Virginia.

In early 2023, the company closed its North Las Vegas, Nevada e-commerce order fulfillment center due to lack of shipping volume from that location. The company also has a third-party operated west coast distribution operation, which provides for the improved flow of merchandise through its supply chain network.

The company utilizes third-party carriers to transport merchandise from its Jackson, Tennessee and Lancaster, Texas distribution centers to its stores.

Marketing

The company's overall marketing efforts encompass various tactics, including digital marketing, paid search, and social media initiatives. It manages a database of customers and communicate with them via targeted emails featuring new products, marketing events, and special offers.

The company focuses on improving the customer experience through its loyalty program, K-club, and its private label credit card financing. The company's private label Kirkland's credit card through Wells Fargo offers financing options, including '6-months no interest' and '12-months no interest' financing for purchases over $250 and $500, respectively.

Seasonality

The company has historically experienced substantial seasonal fluctuations in its net sales and operating results. Due to the importance of the fall selling season, which includes Thanksgiving and Christmas, the last quarter of its fiscal year (year ended January 2023) has historically contributed a disproportionate amount of its net sales, net income, and cash flow for the entire fiscal year.

Trademarks

All of the company's stores operate under the names Kirkland's, Kirkland's Home, Kirkland's Home Outlet, Kirkland's Outlet, and The Kirkland Collection.

The company has registered several trademarks with the United States Patent and Trademark Office on the Principal Register that are used in connection with the Kirkland's stores, including KIRKLAND'S logo design, KIRKLAND'S, THE KIRKLAND COLLECTION, KIRKLAND'S OUTLET, KIRKLAND'S HOME, MARKET AND VINE, SIMPLE THINGS BY KIRKLAND'S, LOVE THE POSSIBILITIES, and LOVE THE PRICE.

Competition

Some of the company's main competitors include HomeGoods; Bed, Bath & Beyond; Cost Plus World Market; Crate & Barrel; Williams-Sonoma, Inc.; Hobby Lobby; At Home; Target; Ebay; Amazon; and Wayfair.

History

Kirkland's, Inc. was founded in 1966. The company was incorporated in Tennessee in 1981.