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Dive Brief:
- Following a positive holiday sales period, specialty home decor and furniture retailer Kirkland’s has promoted Amy Sullivan to chief executive officer, according to a Friday press release. She will step into the position on Feb. 4.
- In her decade-long tenure with the company, Sullivan most recently served as the president and chief operating officer, a position which she took in spring 2023. Prior to joining Kirkland’s, Sullivan acquired senior-level retail experience at Express, Kohl’s, Lands’ End and J.C. Penney.
- Sullivan succeeds interim CEO Ann Joyce, who took over following former CEO Steve Woodward’s retirement in May. Joyce will remain on the company’s board of directors, according to the release.
Dive Insight:
Kirkland’s found its next CEO from within. During her tenure at the home goods company, Sullivan has guided the company through various strategic initiatives, including updating its marketing approach and changing its product assortments to meet customer demand.
“Amy is an invaluable leader within our organization, and over the past nine months she has been instrumental in returning the company to a positive trajectory, including improved 2023 holiday season sales, that we hope to build off of in 2024,” R. Wilson Orr, chairman of Kirkland’s Home, said in a statement. “Since transitioning to an executive leadership role, Amy has been integral to the execution of our repositioning strategy, and we believe, as CEO, she is poised to return Kirkland’s Home to profitable growth over the long-term.”
Kirkland's leadership change follows mixed financial performance in the second half of last year. In Q3 2023, the brand reported an 11% year-over-year decline in net sales to $116.4 million, a figure that included a same-store sales decrease of 9.2%. The company attributed the downturn in part to a slowdown in traffic and a decrease in the average ticket.
That trend reversed some during the holiday period. On Friday, the company reported a 3.1% year-over-year bump in comparable sales during the first two months of Q4. Its comparable sales rose 1.5% in November and 4.8% in December, thanks to stronger traffic and conversion, according to the company’s report.
Earlier this fall, Kirkland’s landed itself on Retail Dive’s bankruptcy watchlist. CreditRiskMonitor rated the retailer a two on its FRISK scoring system as of Oct. 2, indicating a 4% to 10% chance of bankruptcy within 12 months.
Kirkland’s variable financial results come amid shifting demand for home decor and furniture products. According to the U.S. Department of Commerce figures, furniture and home sales dropped by 7% in December compared to last year.
via https://www.aiupnow.com
Tatiana Walk-Morris, Khareem Sudlow
