Kirkland's, Inc. (NASDAQ:KIRK)

Q2 2022 Earnings Conference Call

August 30, 2022 9:00 AM ET

Company Participants

Cody Cree - Gateway Group, Inc., Investor Relations

Steve Woodward - President and Chief Executive Officer

Nicole Strain - Chief Operating Officer and Chief Financial Officer, Executive Vice President

Conference Call Participants

Jeremy Hamblin - Craig Hallum Capital Group

Anthony Lebiedzinski - Sidoti and Company

John Lawrence - The Benchmark Company

David Berman - Berman Capital

Presentation

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 30, 2022. Joining us today are Kirkland's President and CEO, Steve "Woody" Woodward; COO and CFO, Nicole Strain; 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, Roco. Except for historical information discussed during this 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 6, 2022. 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 would like to turn the call over to Kirkland's President and CEO, Woody Woodward. Woody, over to you.

Steve Woodward

Thank you, Cody, and good morning, everyone. As I reflect on the first half of this year, we've encountered a number of headwinds in our business, whether it be supply chain issues, ramping inflation, or depressed consumer spending environment. Working through these external pressures hasn't been easy. But I'm proud of the resiliency of our entire organization, especially as we make progress to transitioning our company or sustained long-term success.

On today's call, I'm going to go over our performance in the second quarter, the current state of our customer acquisition strategy, our liquidity and inventory management goals for the remainder of the year, and what the consumer spending environment looks like as we head into harvest and holiday selling season. So let's jump right into it.