Kirkland’s CEO to retire; Q4 sales fall 9%
Kirkland’s Home is looking for a new chief executive.
The home décor and furnishings retailer said that president and CEO Steve "Woody" Woodward will retire, effective May 31. Board member Ann Joyce will serve as interim CEO until a successor is named. The company said its board is evaluating options for a permanent successor.
Woodward has served as CEO of Kirkland’s Home since October 2018. Prior to that, he was president and chief merchant of Create and Barrel.
In a release, Kirkland’s Home noted that Joyce has an extensive background in the retail industry, having served in various executive and senior-level positions for companies such as Chico's FAS, Aeropostale and Ralph Lauren.
COO
Kirkland's Home also announced that Amy Sullivan, senior VP and chief merchandising and stores officer, has been promoted to the role of president and COO. Sullivan joined the retailer in 2012, and in recent years her leadership role expanded to include global sourcing, stores and omnichannel operations.
Prior to Kirkland's Home, she held senior-level positions for Express, Lands' End, Kohl's and JCPenney.
In separate news, Kirkland’s Home reported a net loss of $3.8 million, or a loss of $0.30 per share, for the quarter ended Jan. 28, compared to net income of $12.5 million, or earnings of $0.91 per share, in the year-ago quarter. Adjusted net loss was $1.1 million, or a loss of $0.09 per share, compared to an adjusted net income of $11.4 million, or income of $0.84 per share, in the prior year.
Net sales fell 9% to $162.5 million from $176.2 million in the prior year quarter. Comparable same-store sales decreased 6.1%, with a 5.5% decline in e-commerce sales. The company said the decrease was primarily driven by a decline in traffic, partially offset by an increase in average ticket.
For the full year, net sales totaled $498.8 million, with 4.2% fewer stores, compared to $558.2 million the previous year. Comparable same-store sales decreased 9.0%, which included an 11.6% decrease in e-commerce sales.
"On behalf of our board, I would like to thank Woody for his tremendous service and dedication to Kirkland's Home over the years," said R. Wilson Orr, chairman. "As we begin to navigate this transition, I'm pleased we have an experienced retail executive in Ann to lead our organization. Ann brings a wealth of experience in retail operations that has proven to be of significant value at the board level. We also congratulate Amy on her well-deserved promotion and enhanced leadership role. We look forward to both of their further contributions in these new roles as we focus on reinvigorating our customer base and returning to profitability."
Commenting on his retirement, Woodward stated: "It has been a pleasure serving Kirkland's Home, and I'm thankful for the resiliency shown across our entire organization as we've navigated the unprecedented macroeconomic challenges of these last few years. Despite these challenges, I'm proud to say we made significant strides improving the quality and design of our merchandise, refreshing the look and feel of our stores, enhancing our omnichannel experience and optimizing our distribution footprint.”
“I firmly believe that Ann, Amy, and our entire leadership team are well equipped to position the Company for long-term success,” Woodward added.
Kirkland's Home operates 344 stores in 35 states as well as an e-commerce website.