NASHVILLE, Tenn., April 20, 2020 /PRNewswire/ -- Kirkland's,
Inc. (NASDAQ: KIRK) provided an update on additional measures it is
taking in response to the impact from the novel coronavirus
"With our stores closed to customer traffic to keep our
employees and customers safe, we have accelerated our contingency
plans across all areas of the company. I'm proud of the innovation
of our team as we stood up contactless curbside pickup and
immediately saw great results," said Woody
Woodward, Chief Executive Officer. "These actions have had a
direct impact on many within our Kirkland's family and were taken
to ensure we have the right cost structure and infrastructure for
this new environment as well as the liquidity and capabilities to
serve our customers online during this pandemic."
Kirkland's has recently taken the following actions to mitigate
the impact of this current situation:
- Extended the closure of all of its 405 stores to customer
traffic, instead offering contactless curbside pickup at over 300
of our stores during specific hours, as permitted. The Company is
unable to predict when its stores can reopen to customer traffic,
but it will continue to follow the guidance of the Centers for
Disease Control and Prevention, as well as local and state
- Focused offers and promotions on its ecommerce business through
its website, www.kirklands.com.
- After paying all store team members during the first two weeks
of closure, furloughed all part-time store employees and
temporarily reduced the pay of full-time managers and key
- Permanently reduced 33% of distribution center indirect labor
and furloughed 30% of direct labor, while further reducing hours to
- Permanently reduced headcount at our corporate headquarters by
approximately 18%; in addition to the 14% reduction in January and
temporarily reduced compensation for the executive team.
- The Company's Board of Directors elected to forego their cash
compensation for the first quarter.
- Cancelled orders and delayed merchandise receipts to manage
inventory levels, and extended payment terms with product and
non-product vendors to improve working capital.
- Significantly reduced transportation expenses with limited
deliveries to stores and the delay/reduction of inbound freight
- Began negotiations with landlords to defer or waive rent while
our stores are closed and accelerated ongoing negotiations with
landlords on potential closures of unprofitable stores in addition
to the 27 permanent store closures completed in the first quarter
- Significantly reduced the planned 2020 marketing spend to
levels consistent with 2019 and reduced all non-operating and
- Further reduced capital expenditures planned for 2020 below the
low end of the previously released range of $10 million.
- Pursued all relevant measures under the CARES Act including net
operating loss carry back, wage credits and payroll tax deferrals
to improve liquidity.
- As previously disclosed, the Company drew down $40 million of its $75
million revolving credit facility. As of April 17, 2020, the Company had approximately
$34 million of cash on hand. The
Company will provide an update on its liquidity when it reports
results for the first quarter of fiscal 2020 in early June.
The COVID-19 pandemic is complex and evolving rapidly, and the
Company's plans may change.
About Kirkland's, Inc.
Kirkland's, Inc. is a specialty retailer of home décor in
the United States, currently
operating 405 stores in 36 states as well as an e-Commerce enabled
website, www.kirklands.com. The Company's stores present a broad
selection of distinctive merchandise, including holiday décor,
furniture, art, fragrance and accessories, ornamental wall décor,
decorative accessories, mirrors, lamps, textiles, artificial floral
products, gifts, housewares, outdoor living items, frames and
clocks. The Company's stores offer an extensive assortment of
holiday merchandise during seasonal periods as well as items
carried throughout the year suitable for gift-giving. More
information can be found at www.kirklands.com.
Except for historical information contained herein, the
statements in this release are forward-looking and made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve known and
unknown risks and uncertainties, which may cause Kirkland's actual
results to differ materially from forecasted results. Those risks
and uncertainties include, among other things, the impact of store
closures in 2020, the effectiveness of the Company's marketing
campaigns, risks related to changes in U.S. policy related to
imported merchandise, particularly with regard to the impact of
tariffs on goods imported from China and strategies undertaken to mitigate
such impact, risks associated with the spread of COVID-19 and its
possible impact on the Company's revenues and supply chain, the
Company's ability to retain its senior management team, continued
volatility in the price of the Company's common stock, the
competitive environment in the home décor industry in general and
in Kirkland's specific market areas, inflation, fluctuations in
cost and availability of products, interruptions in supply chain
and distribution systems, including our e-commerce systems and
channels, the ability to control employment and other operating
costs, availability of suitable retail locations and other growth
opportunities, disruptions in information technology systems
including the potential for security breaches of Kirkland's or its
customers' information, seasonal fluctuations in consumer spending,
and economic conditions in general. Those and other risks are more
fully described in Kirkland's filings with the Securities and
Exchange Commission, including the Company's Annual Report
on Form 10-K filed on April 10,
2020 and subsequent reports. Kirkland's disclaims any
obligation to update any such factors or to publicly announce
results of any revisions to any of the forward-looking statements
contained herein to reflect future events or developments.
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SOURCE Kirkland's, Inc.