Kirkland's, Inc. (NASDAQ:KIRK) Q2 2023 Earnings Conference Call September 6, 2023 9:00 AM ET

Company Participants

Cody Cree - Director, IR

Ann Joyce - Interim CEO

Amy Sullivan - President and COO

Mike Madden - EVP and CFO

Conference Call Participants

Jeremy Hamblin - Craig-Hallum Capital Group

John Lawrence - Benchmark

Operator

Good morning everyone and thank you for participating in today's conference call to discuss Kirkland's Financial Results for the Second Quarter ended July 29th, 2023. Joining us today are Kirkland's Home Interim CEO, Ann Joyce; President and COO, Amy Sullivan; EVP and CFO, Mike Madden; and the company's External Director of Investor Relations, Cody Cree.

Following their remarks, we'll open the call for your questions. Please note, today's conference is being recorded. Before we go further, I would like to turn the call over to Mr. Cree as he reads the company's Safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements.

Cody, please go ahead.

Cody Cree

Thanks Rocco. Except for historical information discussed during this conference call, the statements made by company management are forward-looking and made pursuant to the Safe Harbor provision 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 in future periods to differ materially from forecasted results. Those risks and uncertainties are more fully described in Kirkland's filings with the Securities and Exchange Commission.

I'd like to remind everyone that this call will be available for replay through September 13th, 2023. A webcast replay will also be available via the link provided in today's press release as well as on the company's website at kirklands.com.

Now, I'd like to turn the call over to Kirkland's Interim CEO, Ann Joyce. Ann, over to you.

Ann Joyce

Thank you, Cody and good morning everyone.

Before we jump into the results, I want to start by expressing my gratitude For the tireless work our associates at Kirkland's are putting in to return our business to profitability.

We knew these efforts were going to translate into immediate success and we remain up against difficult macroeconomic headwinds, but I am confident we are doing all the right things to write the shift and return the company to profitability.

As expected, Q2 was a difficult quarter with challenging sales comparison due to prior year inventory liquidation activity. On a macro level, inflation remains a challenge as our customers continue to spend a large portion of their disposable income on necessities and experiences.