Kirkland’s updates turnaround strategy; may close some stores
Kirkland’s new partnership with Beyond — the parent company of Bed, Bath & Beyond, Buy Buy Baby, Overstock and Zulily — is a key part of its transformation strategy.
The home décor and furnishings retailer in October 2025 entered into an agreement with Beyond that, among other things, includes Kirkland’s becoming the exclusive brick-and-mortar operator and licensee for new, smaller-format “neighborhood” Bed Bath & Beyond stores. Kirkland’s also received a $25 million investment from Beyond.
In an update Tuesday on its new strategy, Kirkland’s said it has identified an initial list of approximately 6% of its stores that do not meet its profitability standards in their current format, and that it is “aggressively” taking actions to address the locations. (Kirkland’s currently operates 317 stores in 35 states.)
The actions include converting stores to a more “margin accretive” (or profitable) brand,” enhancing the assortment strategy to drive improved profitability through the term of the lease and closing closing select locations.
“As part of our ongoing transformation, we will continue to eliminate or convert underperforming assets to drive revenue growth and improve the profitability of the company,” Kirkland’s stated in a press release.
Saying it was not satisfied with its e-commerce performance. Kirkland’s intends to leverage Beyond’s expertise and partnerships to enhance site experience and improve conversion, while its internal team prioritizes profitability. As part of the plan, it is eliminating SKUs that do not meet margin standards after shipping, handling and returns. It also is expanding product categories to drive average order value and reallocating lower AUR inventory to brick & mortar stores to maximize its buy online, pick-up in-store capabilities.
In other moves, the company plans to expand the Kirkland’s Home name through private label distribution across its omnichannel brands. The company said it has received commitments from top vendor partners to expand its product development and sourcing capabilities to deliver Kirkland's Home product specifically curated for each of its brands
“We intend to leverage the Kirkland's Home brand as the exclusive private label assortment for everyday basics and décor in Bed Bath & Beyond stores, expanding the reach of the brand to new customers,” the company said.
In addition, the retailer is exploring opportunities to expand e-commerce distribution in furniture, patio and rugs driving average order value through Kirkland's, Overstock and other marketplaces.
"Inspired by the possibilities for these iconic brands, we are setting higher standards and maintaining a disciplined approach to capital allocation to maximize our liquidity that we believe will not only advance our path to profitability but position Kirkland's for long-term success while delivering value for all shareholders," said CEO Amy Sullivan.
Preliminary Q4 Results
Kirkland’s also reported preliminary financial results for its fourth quarter, ended Feb. 1. Net sales are expected to total about $148 million, with a consolidated comparable sales decline of about 0.6%, inclusive of comparable store growth of 1.6%.
E-commerce declined 7.9% year-over-year. Anticipated net income for Q4 is about $7.9 million, down 22%
