Is Kirkland’s Going Out Of Business 2024?

‘Is Kirkland’s Going Out Of Business 2024?’ you might have come across this headline recently. And to be honest, it’s not uncommon in the U.S now that most of the stores in the country are either facing bankruptcy, such as Morphe, or are actually closing like Zulily, or are getting acquired by other companies, such as Straight Talk, or are just in the news for other reasons like Jim Shore and Tellurian.

Is Kirkland's Going Out Of Business

However, all this creates a ruckus among the fans of the company, and Kikrland’s is no exception.

Kikrland’s is a 57-year-old company that started in 1966 and soon became everybody’s go-to store. If you are also one of the many fans of Kirkland’s, then before believing just any news, you should check the facts first.

Let’s find out how much of this is true by reading the article and understanding Kirkland’s and what makes it different.


About Kirkland’s

Kirkland’s is an American retail chain that specializes in selling home decor, gifts, accessories, textiles, and furniture.

The company was founded in 1966 by Carl Kirkland and Robert Kirkland in Jackson, Tennessee. As of now, it has become a mulit-billion brand in the United States of America.


What Makes Kirkland’s Different?

What Makes Kirkland's Different

The story of Kirkland’s started with the low-pricing strategy, and the company maintained this strategy for years.

Kirkland has been able to attract many customers by keeping the low prices of its products but also maintaining the high-quality.

Earlier, their niche products were only bought by customers who were rich and could afford to spend money. The company then understood the problem and started to manufacture cheap products.

As a result, more people became interested in the products, increasing the sales of the company. And the best part is that they don’t comprise the high-quality of their products. This is what makes Kirkland’s different from other companies.


Is Kirkland’s Going Out Of Business 2024?

Impacted by the over-assorted and under-performance of furniture sales in Q1, Kirkland’s might be closing its stores in different locations. However, it would be wrong to say that Kikrland’s is going out of business.

The company increased the prices of their average ticket. As a result, the furniture accounted for 18% of sales in 2022. The segment was also called the weak performer of the company in Q1.

In 2023, the gross profit of the first quarter was $25.9 million as compared to the $28.3 million in the previous quarter. The operating loss for the same quarter of 2023 was reported to be $10.3 million compared to the operating loss of $11.1 million in the prior year.

On this, the company’s CEO, Ann Joyce, told the investors that the company disappointed its loyalist customers by placing too much emphasis on promoting higher-ticket items.

She further added that they have learned a great deal about the furniture category and what works for the customers and what doesn’t.

So, overall, the company might be closing some of its underperforming stores but is not going out of business.


What Is The Reason Kirkland’s Is Going Out Of Business?

What Is The Reason Kirkland's Is Going Out Of Business

It is true that Kirkland’s has been closing many of its stores after it faced supply chain disruptions and inflation issues. However, the good news is that the company is now recovering by closing some of its underperforming stores.

The company is all set to close its three stores in the United States Of America and two other stores in Maryland, White Marsh, Lawton, and Oklahoma.

It also confirmed the closing of the store in the Stone Hill Town Center in Pflugerville, the place where it celebrated 10 years of operation.

So, it was all a part of the strategy where the store closures helped the company to dwindle the operating costs.

Additionally, according to Ann Joyce, the company’s merchandise margins have begun to expand as a result of the market cooling down from the significant issue of inflation.

As the inflation rate rose up to 8.9% in some sections of the economy, this resulted in the limited buying power of the customers.

However, now, as the current inflation rate is 3.14% in the U.S.A., Kirkland’s is working on using this to increase its sales. The company said it will have a heavy discount focus in the next quarter.


What Is The Probability Of Kirkland’s Bankruptcy?

The probability of bankruptcy is the indicator of the financial distress of the company in the next two years. The value is derived between 0 and 100.

According to the calculations of the Macroaxis, the probability of Kirkland’s going bankrupt is less than 30%.

((Source: https://www.macroaxis.com/invest/ratio/KIRK/Probability-Of-Bankruptcy))


Who Are The Top Shareholders Of Kirkland’s?

HolderSharesValue
Vanguard Group Inc665,9352,157,629
U.S. Bancorp\DE\310,0001,004,400
Invesco Ltd.143,943466,375
Blackrock Inc.125,999408,236
Geode Capital Management, LLC114,412370,694
Renaissance Technologies, LLC96,200311,688
Federated Hermes, Inc.74,012239,798
Bridgeway Capital Management, Inc.50,000162,000
State Street Corporation45,382147,037
Shay Capital LLC43,452140,784

Who Are The Top Mutual Fund Holders Of Kirkland’s?

HolderSharesValue
Vanguard Total Stock Market Index Fund458,4781,485,468
Vanguard Extended Market Index Fund180,002583,206
Invesco ETF Tr-Invesco FTSE RAFI US 1500 Small-Mid ETF143,943466,375
Federated Hermes MDT Mid Cap Growth Fund74,012239,798
Fidelity Extended Market Index Fund59,701193,431
Bridgeway Funds Inc-Ultra Small Company Market Fund48,500157,140
Fidelity Total Market Index Fund25,17181,554
Fidelity Series Total Market Index Fund13,52443,817
Vanguard Balanced Index Fund11,80038,232


Annual Revenue Of Kirkland’s Over The Years

The table represent the revenue of Kirkland’s in millions ( USD):

YearsAmount
2023$499
2022$558
2021$543
2020$604
2019$647
2018$634
2017$594
2016$562
2015$508
2014$461
2013$448

Conclusion

The answer to “Is Kirkland’s Going Out Of Business 2024?” is tough. It is true that the company has been facing some serious challenges due to inflation. It has also been closing many of its stores, which raised speculations about its closing.

However, before trusting any news, you should always check all the facts, and we hope that this article has you the information that clears your predicament of Kikrland’s closing headlines.


FAQs

Is Kirkland's owned by Costco?

No, Kirkland’s is not a part of Costco.

Where is the headquarters of Kikrland's?

The headquarters of Kirkalnd’s is located in Brentwood, Tennessee.

Is Kirkland's a franchise?

Kirkland’s Home is a publicly owned company with a board of directors and thus does not offer a franchising option.

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