How does top management feel?
Kirkland’s Chief Executive Officer and President, Steve Woodward, said that the company experienced a lot of challenges in the third quarter. However, they remain confident in their overall position as they continue to execute on their long-term transformation strategy.
Mr. Steve Woodward said:
We experienced softer than expected sales in the final weeks of the quarter but ended with an 8.4% two-year comparable sales increase. We continue to navigate the broader macro issues related to supply chain and labor constraints, which affected year-over-year profitability.
The CEO claimed that they were able to continue to expand their gross margin because they stripped away all the incremental freight charges in their supply chain. However, he says that when we look at the November results, we’ll notice how broader supply chain constraints and inconsistent traffic patterns affected them.
With that said, Mr. Woodward still said:
Despite these headwinds, we are excited about the progress we’ve been making as we enter 2022. We’ve started a brand awareness campaign ahead of our rebranding launch to Kirkland’s Home, which we expect to take place in the first quarter of 2022.
He claimed that they’re working to strengthen the digital capabilities within their e-comm segment to improve the omnichannel experiences of their customers further.
Key strategic initiatives
The company is looking to enhance its product development systems to help reinforce both relevancy and quality as it continues to transform into a leading retailer where customers have the ability to furnish their houses on a budget.
Kirkland’s also intends to bolster its omnichannel strategies through website enhancements, improved in-store experiences, expanded online assortment options, and a more concentrated marketing spend.
The company will also re-launch its loyalty program to improve the overall customer experience. In addition, it will provide its customers with broadened delivery options and extended credit options.
The post Here’s why Kirkland is down 25% on Thursday morning appeared first on Invezz.