The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jeremy Hamblin - Craig-Hallum Capital Group LLC - Analyst
: Great, thanks for taking the questions. I wanted to just start by seeing if I could clarify the commentary around trends. So can we assume that May
is kind of flat or maybe slightly negative, albeit a little bit better than April?
Question: Jeremy Hamblin - Craig-Hallum Capital Group LLC - Analyst
: And then I just wanted to make sure that we understood typical seasonality of the business. So I think as I look back historically, Q2 from an absolute
dollar sales basis is down from Q1. I wanted to understand if that is kind of the pattern that you expect to play out again this year.
And then just to see if I could clarify the commentary around gross margin. So it sounds like it's a bit more aggressive on the promotions, both for
Kirk's business as well as industry. Are you kind of expecting like a low-20s type gross margin in Q2?
Question: Jeremy Hamblin - Craig-Hallum Capital Group LLC - Analyst
: Got it. And then let's just touch on the online portion of your business. So that obviously has struggled now for some time. And I wanted to just
understand the product assortment that you're offering online versus your stores. And I think what you indicated is in terms of how it SKUs, it's a
bit more slanted on your online portion of business towards a little bit higher ticket type item.
Is that something that you could potentially revamp? I mean, you have a number of peers in the home dTcor space that kind of slant a little bit
more towards the core accessories in the online portion of their business. Is that an adjustment that you're looking at making on a go-forward
basis?
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JUNE 06, 2024 / 1:00PM, KIRK.OQ - Q1 2024 Kirkland's Inc Earnings Call
Question: Jeremy Hamblin - Craig-Hallum Capital Group LLC - Analyst
: Understood. Thanks for taking the questions and best wishes.
Question: John Lawrence - The Benchmark Company, LLC - Analyst
: Congrats on the positive comp. We've seen several stores over the last few weeks and certainly seeing that traffic is built a little bit and then sort
of step one. Can you talk about the store base and the fleet where you were really strong? And was it the average of that 2% up? Was there a lot
of variability of that across the country and how many stores might have been positive versus still struggling a little bit?
Question: John Lawrence - The Benchmark Company, LLC - Analyst
: Great. Thank you. And Mike, when you talk about the e-commerce and the platform, what ideally better systems, et cetera, down the road, what
do you reasonably see as an opportunity for saving for shipping an order across the country? What's the metric we should look at to be able -- or
what are the possibilities for increased profitability out of that channel?
Question: John Lawrence - The Benchmark Company, LLC - Analyst
: Yeah, thanks. And next question, and you spoke to it, and I want to make sure I understood the process of relocating some stores and some proven
markets and replacing some of those stores. Where does that stand? And I know you spoke to it, but just remind me what that was?
Question: John Lawrence - The Benchmark Company, LLC - Analyst
: Great, thanks, appreciate the time. Good luck.
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JUNE 06, 2024 / 1:00PM, KIRK.OQ - Q1 2024 Kirkland's Inc Earnings Call
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