Kirkland's, Inc. (NASDAQ:KIRK) Q1 2022 Earnings Conference Call May 31, 2022 9:00 AM ET
Company Participants
Cody Cree - Director of IR
Steve Woodward - CEO
Nicole Strain - COO and CFO
Conference Call Participants
Jeremy Hamblin - Craig-Hallum Capital Group
Anthony Lebiedzinski - Sidoti
John Lawrence - The Benchmark Company
John Lewis - Osmium Partners
Operator
Good morning, everyone. And thank you for participating in today's conference call to discuss Kirkland’s Financial Results for the First Quarter Ended April 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. 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
Except for historical information discussed during [Technical Difficulty] call, the statements made by company [Technical Difficulty] forward-looking and made pursuant [Technical Difficulty]. Forward-looking statements involve [Technical Difficulty], 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 June 7, 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, Steve Woodward. Woody, over to you.
Steve Woodward
Thank you, Cody and good morning, everyone. Certainly been a challenging start to the year. Like many of our peers, our first quarter results were significantly impacted by lower customer demand and higher costs associated with various supply chain constraints. Anyone who has been paying attention to the consumer commentary over the last few weeks knows that the broader retail landscape is being notably affected by several concerning macroeconomic trends, including rising interest rates, elevated levels of inflation, the ongoing geopolitical conflict between Russia and Ukraine and increased supply chain costs stemming from higher freight costs and transportation rates.
Kirkland is not immune to these issues. In some ways, we're feeling more than our peers in the home furnishing space. It appears our value focus customer is more negatively impacted by these macroeconomic issues compared to the wealthier customer bases that shop a premium store brands and have more discretionary cash to spend. We believe our consumer has shifted some of their discretionary spend to experiences such as going out to eat or taking a vacation, given the pandemic's restrictions being largely lifted. Simply put, our customers are not prioritizing their discretionary spending on home furnishings and decor right now.