Latest news with #Kirkland's
Miami Herald
13-05-2025
- Business
- Miami Herald
Formerly bankrupt retail giant makes major expansion move
When a brand has a cult following as big as this one, not even declining sales, a mass shutdown, or bankruptcy can stop it from overcoming so many odds. This retail giant helped teenagers redecorate their rooms during an identity crisis, provided college students with the necessary supplies to set up college dorms, and eased the stress of those looking to equip a new home. Don't miss the move: Subscribe to TheStreet's free daily newsletter Unfortunately, Bed Bath & Beyond filed for Chapter 11 bankruptcy in April 2023 after over 50 years of business, having accumulated $1.8 billion in long-term debt. At the time of the filing, it had 360 Bed Bath & Beyond stores and 120 buybuy BABY locations, which it was forced to close. Related: Popular formerly bankrupt retail chain makes brick-and-mortar comeback However, Beyond Inc. BYON, formerly Overstock (OSTK) , acquired Bed Bath & Beyond for $21.5 million two months later. This transaction excluded the company's brick-and-mortar business and the buybuy BABY brand, causing the brands to split and marking the end of its physical stores, transforming it into a fully online retailer. But Bed Bath & Beyond didn't stay away from physical stores for long. In October, Beyond struck a deal with Kirkland's (KIRK) , allowing it to sell Bed Bath & Beyond (BBBY) products at its locations and making it the exclusive licensee to develop physical stores with a smaller format. Now that Bed Bath & Beyond has reestablished its brick-and-mortar presence, it was time to reunite it with its former sister brand, something Beyond had intended to do from the start. Beyond acquired buybuy BABY in February this year, with a similar goal of reviving the brand and returning its merchandise to brick-and-mortar settings. Related: Formerly bankrupt retail giant finalizes deal to return to physical stores The company hit the ground running, relaunching Buybuy BABY's online store on May 8. Because of Beyond's agreement with Kirkland's, the company may also sell buybuy BABY merchandise and open physical stores for the brand. However, this acquisition was just another step in a bigger upcoming expansion. During its latest earnings call, Beyond revealed plans to open at least four Overstock stores and launch a new Bed Bath & Beyond branch called "Bed Bath & Beyond Home," intended to be a physical standalone store focused on home decor. Beyond and Kirkland announced on May 12 that they have entered into an agreement through which Beyond is to acquire Kirkland's intellectual property for $5 million, with intentions to license the trademarks back to Kirkland's. Additionally, Beyond closed a $5.2 million deal to expand the existing credit facility with Kirkland's. "The upsized facility strengthens Kirkland's financial position, providing flexibility for general working capital purposes and support for the company's updated store conversion strategy," stated Kirkland's in the announcement on its website. More Retail News: Tariff fears fuel rising sales, dread of shortages, empty shelvesWhen you'll see empty retail store shelves due to tariffsPopular restaurant announces more closures despite rising sales This new deal has resulted in changes to the existing agreement between the two companies. Beyond's "collaboration fee" has increased from 0.25% to 0.50% on Kirkland's brick-and-mortar retail revenue. This eliminated Kirkland's 3% royalty obligation to Beyond for all store sales generated by Bed Bath & Beyond. Kirkland's is now also allowed to open and operate Bed Bath & Beyond Home and buybuy BABY stores, while Beyond now has a say on Kirkland's board and may acquire up to 65% of its capital stock. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
13-05-2025
- Business
- Yahoo
Beyond to acquire Kirkland's IP for $5M — and plans to license it back
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Building on a partnership that started early this year, Beyond has entered into an agreement to acquire Kirkland's intellectual property for a purchase price of $5 million, according to a Monday filing from Kirkland's. Beyond said in a Monday press release that it intends to license the trademarks back to Kirkland's. Additionally, Beyond has agreed to a $5.2 million expansion of the existing credit facility with Kirkland's. Beyond's share of Kirkland's quarterly retail revenue was increased from 0.25% to 0.5% and will now only apply to physical sales, while an additional incentive fee will be tied to e-commerce revenue. The updated deal also eliminates Kirkland's 3% 'royalty obligations on net sales in Kirkland's-operated Bed Bath & Beyond and Overstock retail locations,' per the release. The move features several other changes to the retailers' partnership, including the ability for Beyond to acquire up to 65% of Kirkland's outstanding capital stock, per a press release from Kirkland's Monday. The latest news from Beyond and Kirkland's adds several layers to an already complex retail partnership. 'We have broadened the brick-and-mortar store conversion strategy to include the Bed Bath & Beyond Home concept and BuyBuy Baby,' Beyond Executive Chairman and Principal Executive Officer Marcus Lemonis said in a statement. 'We also see great value in enhancing our intellectual property portfolio to include Kirkland's Home within our family of brands alongside Bed Bath & Beyond, Overstock, and BuyBuy Baby, among others. We expect this to enhance Beyond's brand equity and unlock new revenue streams across retail formats.' With an amendment to the companies' existing license agreement, Kirkland's is now allowed to open and operate Bed Bath & Beyond Home and BuyBuy Baby stores within the neighborhood format retail footprint. New amendments to a stockholder agreement between the retailers also open up the potential for Beyond to become more influential on Kirkland's board. The expanded credit agreement allows Beyond to convert the outstanding debt into shares of Kirkland's common stock. A Friday filing from Beyond says that the company's share of common stock in Kirkland's, along with the stock it has the right to acquire upon conversion, amounts to 19.9% of the shares of common stock outstanding as of Wednesday. . The amended deal allows Beyond to appoint one nominee to Kirkland's Board of Directors as long as it beneficially owns at least 5% of Kirkland's then-outstanding common stock. Beyond can appoint two new directors once it beneficially owns 20% and three directors if it owns at least 50% of the outstanding common stock. If Beyond chooses to exercise its rights, up to three existing directors must resign from the board, and Beyond will also have the right to appoint one person as a nonvoting observer to Kirkland's board. Kirkland's President and CEO Amy Sullivan was elected to Kirkland's board in June of 2024 while two existing board members resigned after not receiving a majority of the votes cast. Kirkland's former interim CEO Ann Joyce was re-elected to the board as Chair and reduced the Board's size from eight to six members. The new elements in Beyond and Kirkland's relationship come after the home goods companies entered into a strategic partnership in October. Beyond (which operates Bed Bath & Beyond, BuyBuy Baby and Overstock) initially gave Kirkland's the ability to operate five neighborhood small-format Bed Bath & Beyond stores as their exclusive operator and licensee. Kirkland's Q4 earnings report earlier this month revealed that the company's net sales dropped about 10% year over year to $148.9 million and net income for the quarter fell about 22% to $7.9 million.
Business Mayor
12-05-2025
- Business
- Business Mayor
Beyond to acquire Kirkland's IP for $5M — and plans to license it back
Listen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Building on a partnership that started early this year, Beyond has entered into an agreement to acquire Kirkland's intellectual property for a purchase price of $5 million, according to a Monday filing from Kirkland's. Beyond said in a Monday press release that it intends to license the trademarks back to Kirkland's. Additionally, Beyond has agreed to a $5.2 million expansion of the existing credit facility with Kirkland's. Beyond's share of Kirkland's quarterly retail revenue was increased from 0.25% to 0.5% and will now only apply to physical sales, while an additional incentive fee will be tied to e-commerce revenue. The updated deal also eliminates Kirkland's 3% 'royalty obligations on net sales in Kirkland's-operated Bed Bath & Beyond and Overstock retail locations,' per the release. The move features several other changes to the retailers' partnership, including the ability for Beyond to acquire up to 65% of Kirkland's outstanding capital stock, per a press release from Kirkland's Monday. The latest news from Beyond and Kirkland's adds several layers to an already complex retail partnership. 'We have broadened the brick-and-mortar store conversion strategy to include the Bed Bath & Beyond Home concept and BuyBuy Baby,' Beyond Executive Chairman and Principal Executive Officer Marcus Lemonis said in a statement. 'We also see great value in enhancing our intellectual property portfolio to include Kirkland's Home within our family of brands alongside Bed Bath & Beyond, Overstock, and BuyBuy Baby, among others. We expect this to enhance Beyond's brand equity and unlock new revenue streams across retail formats.' With an amendment to the companies' existing license agreement, Kirkland's is now allowed to open and operate Bed Bath & Beyond Home and BuyBuy Baby stores within the neighborhood format retail footprint. New amendments to a stockholder agreement between the retailers also open up the potential for Beyond to become more influential on Kirkland's board. The expanded credit agreement allows Beyond to convert the outstanding debt into shares of Kirkland's common stock. A Friday filing from Beyond says that the company's share of common stock in Kirkland's , along with the stock it has the right to acquire upon conversion, amounts to 19.9% of the shares of common stock outstanding as of Wednesday. . The amended deal allows Beyond to appoint one nominee to Kirkland's Board of Directors as long as it beneficially owns at least 5% of Kirkland's then-outstanding common stock. Beyond can appoint two new directors once it beneficially owns 20% and three directors if it owns at least 50% of the outstanding common stock. If Beyond chooses to exercise its rights, up to three existing directors must resign from the board, and Beyond will also have the right to appoint one person as a nonvoting observer to Kirkland's board. Kirkland's President and CEO Amy Sullivan was elected to Kirkland's board in June of 2024 while two existing board members resigned after not receiving a majority of the votes cast. Kirkland's former interim CEO Ann Joyce was re-elected to the board as Chair and reduced the Board's size from eight to six members. The new elements in Beyond and Kirkland's relationship come after the home goods companies entered into a strategic partnership in October. Beyond (which operates Bed Bath & Beyond, BuyBuy Baby and Overstock) initially gave Kirkland's the ability to operate five neighborhood small-format Bed Bath & Beyond stores as their exclusive operator and licensee. Read More UK supermarket sandwich recall: full list of products
Business Wire
12-05-2025
- Business
- Business Wire
Beyond, Inc. Expands Strategic Investment in Kirkland's Home
MURRAY, Utah--(BUSINESS WIRE)--Beyond, Inc. (NYSE:BYON) (the 'Company'), owner of Bed Bath & Beyond, Overstock, buybuy BABY, and a blockchain asset portfolio, announced the closing of a $5.2 million expansion of the existing credit facility with Kirkland's, Inc. (Nasdaq: KIRK). The upsized facility is intended to strengthen Kirkland's financial position, provide flexibility for general working capital purposes and support an updated store conversion strategy. Additionally, the companies have entered into an agreement for Beyond to acquire the rights of Kirkland's in the Kirkland's brand, expanding Beyond's portfolio of iconic brands. Marcus Lemonis, Beyond's Executive Chairman and Principal Executive Officer, commented, 'Our expanded investment in Kirkland's represents another step in our vision to create a family of trusted, iconic brands that serve customers where they are, both online and in local communities. We are excited to bring a much-desired omni experience to our valuable customers. We have broadened the brick-and-mortar store conversion strategy to include the Bed Bath & Beyond Home concept and buybuy BABY. We also see great value in enhancing our intellectual property portfolio to include Kirkland's Home within our family of brands alongside Bed Bath & Beyond, Overstock, and buybuy BABY, among others. We expect this to enhance Beyond's brand equity and unlock new revenue streams across retail formats.' In connection with the credit facility expansion noted above, the Company and Kirkland's have agreed to certain amendments and modifications to existing agreements previously entered into between the companies, including: Credit Facility Expansion: An Amended and Restated Term Loan Credit Agreement, whereby Beyond provided Kirkland's with additional financing in an aggregate principal amount of $5 million plus accrued interest under the prior facility with Kirkland's and outstanding collaboration fees under the prior collaboration agreement between the parties. Under this amended agreement, Beyond has the option to convert the outstanding debt into shares of Kirkland's common stock, subject to Nasdaq shareholder approval rules, if applicable. In connection with the expansion of the credit facility, both Beyond and lender Bank of America have provided waivers to Kirkland's with respect to the event of default for non-compliance with certain covenants disclosed in the Kirkland's Annual Report on Form 10-K for the year ended February 1, 2025, filed with the Securities and Exchange Commission on May 2, 2025. Brand Portfolio Expansion: The parties have entered into an Asset Purchase Agreement pursuant to which, subject to senior lender approvals, Beyond will acquire from Kirkland's all of its trademarks that contain 'Kirkland,' along with certain related assets, with the intent to license the trademarks back to Kirkland's for use in connection with their existing retail stores and associated e-commerce websites. Enhanced Collaboration Terms: The parties have also entered into an Amended and Restated Collaboration Agreement whereby the parties have agreed to increase the 'collaboration fee' it receives from 0.25% to 0.50% on all of Kirkland's brick-and-mortar retail revenue to capture expanded branding opportunity while eliminating Kirkland's prior 3% royalty obligations on net sales in Kirkland's-operated Bed Bath & Beyond and Overstock retail locations. Updated License and Store Strategy: The parties have amended their existing License Agreement to include a license to Kirkland's to open and operate Bed Bath & Beyond Home and buybuy BABY stores within the neighborhood format retail footprint. Strengthened Capital Structure Flexibility and Governance: The transaction further includes the removal of transfer and voting restrictions associated with the shares of Kirkland's stock that were previously issued under the Subscription Agreement, the removal of the standstill period previously in effect under the Investor Rights Agreement, and the addition of provisions under which Beyond may appoint one additional nominee to the Kirkland's Board of Directors. About Beyond Beyond, Inc. (NYSE:BYON), based in Murray, Utah, is an ecommerce-focused retailer with an affinity model that owns or has ownership interests in various retail brands, offering a comprehensive array of products and services that enable its customers to enhance everyday life through quality, style, and value. The Company currently owns Bed Bath & Beyond, Overstock, buybuy BABY, and other related brands and websites as well as a blockchain asset portfolio. The Company regularly posts information and updates on its Newsroom and Investor Relations pages on its website, Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include all statements other than statements of historical fact, including but not limited to statements regarding the anticipated benefits of the transactions for any party, licensing arrangements, Beyond's brand equity, future revenue streams, shareholder approval, and the timing of any of the foregoing. Forward-looking statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the factors found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 25, 2025, Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on April 29, 2025, and in our subsequent filings with the SEC.
Yahoo
18-02-2025
- Business
- Yahoo
KIRKLAND'S ACCELERATES TRANSFORMATION FOCUSED ON PATH TO PROFITABILITY
Provides 4Q24 Business Update; Net Sales of ~$148 Million with Comparable Brick-and-Mortar Store Sales Growth of 1.6% Amy Sullivan, CEO, to Participate in Virtual Fireside Chat Hosted by Craig-Hallum, Wednesday, February 19th at 2pm ET NASHVILLE, Tenn., Feb. 18, 2025 /PRNewswire/ -- Kirkland's, Inc. (Nasdaq: KIRK) ("Kirkland's" or the "Company"), a multi-brand specialty retailer of home décor, housewares and furnishings, today announced an update to the Company's strategic initiatives and plans to advance the path to profitability and provided an update on fourth quarter fiscal 2024 preliminary results. Amy Sullivan, CEO of Kirkland's, commented, "Over the past year we delivered significant improvement in key operating metrics while driving consistent positive comparable brick-and-mortar store sales growth as we worked to stabilize the core Kirkland's Home business during the first phase of our transformation. As we enter our next chapter with new assets through our partnership with Beyond, Inc., we are positioned to leverage our collective family of brands as we drive towards our path to profitability. We believe an omnichannel retail strategy focused on customer experience is foundational in building brand health, maximizing lifetime customer value and delivering sustainable profitable growth. We are dedicated to three strategic initiatives as part of our ongoing transformation, ensuring accountability and execution at every level." Improve or Eliminate Underperforming Assets: By expanding our portfolio of brands to include Kirkland's Home, Bed Bath & Beyond, buybuy Baby and Overstock, we are setting new benchmarks and raising the bar of expectations. Following a comprehensive review of our entire store footprint, we have identified an initial list of approximately 6% of our stores that do not meet our profitability standards in their current format, and we are aggressively taking actions to address these stores. Such actions include strategically converting stores to a more margin accretive brand, augmenting the assortment strategy to drive improved profitability through the term of the lease, and closing select locations to ensure our real estate investments align to our new standards. As part of our ongoing transformation, we will continue to eliminate or convert underperforming assets to drive revenue growth and improve the profitability of the company. Optimize E-Commerce Performance: While we have seen sequential improvement in our Kirkland's Home brick & mortar channel, we are not satisfied with our e-Commerce performance. Through our collaboration with Beyond, we intend to leverage their expertise and partnerships to enhance site experience and improve conversion, while our internal team prioritizes profitability. With clear line of sight from our holistic channel analysis, we have begun strategic actions including eliminating SKUs that do not meet margin standards after shipping, handling and returns, strategically expanding product categories to drive average order value and maximizing our omnichannel assets by reallocating lower AUR inventory to brick & mortar stores to maximize our Buy Online Pick-up In Store ("BOPIS") capabilities. Our e-Commerce channel is an integral part of our Kirkland's Home customer journey, and we believe the actions we are taking will deliver a more profitable transaction. Maximize Kirkland's Home Brand Value and Distribution: For almost 60 years, Kirkland's Home has been a destination for seasonally relevant home décor, gifts and furnishings. We believe there is a significant opportunity to expand the Kirkland's Home name through private label distribution across our collective family of omnichannel brands. We have commitments from top vendor partners to expand our product development and sourcing capabilities to ensure we can deliver unique Kirkland's Home product specifically curated for each of our omnichannel brands. We intend to leverage the Kirkland's Home brand as the exclusive private label assortment for everyday basics and décor in Bed Bath & Beyond stores expanding the reach of the brand to new customers. In addition, we are exploring opportunities to expand e-commerce distribution in furniture, patio and rugs driving average order value through Kirkland's, Overstock and other marketplaces. "Inspired by the possibilities for these iconic brands, we are setting higher standards and maintaining a disciplined approach to capital allocation to maximize our liquidity that we believe will not only advance our path to profitability but position Kirkland's for long-term success while delivering value for all shareholders," concluded Sullivan. Preliminary Financial Results For the fourth quarter of fiscal 2024, the Company expects net sales of approximately $148 million and a consolidated comparable sales decline of approximately 0.6%, inclusive of comparable store growth of 1.6% and an e-commerce decline of 7.9%, compared to the fourth quarter of fiscal 2023. In addition, the Company expects net income of approximately $7.9 million, diluted earnings per share of approximately $0.50, reflecting a total share count of approximately 15.8 million shares, and adjusted EBITDA of approximately $12.0 million. As of February 17, 2025, the Company had $41.9 million of outstanding borrowings and letters of credit under its revolving credit facility, with availability of $8.2 million after the minimum required availability covenant, and $8.5 million in debt to Beyond, Inc. Fireside Chat In addition, the Company announced that Amy Sullivan, will participate in a virtual fireside chat hosted by Jeremy Hamblin from Craig-Hallum on Wednesday, February 19, 2025 at 2pm ET. The event will be webcast live and can be accessed on the Company's Investor Relations website, An online archive will be available on that site following the fireside chat. About Kirkland's, Inc. Kirkland's, Inc. is a specialty retailer of home décor and furnishings in the United States, currently operating 317 stores in 35 states as well as an e-commerce website, under the Kirkland's Home brand. The Company provides its customers an engaging shopping experience characterized by a curated, affordable selection of home décor and furnishings along with inspirational design ideas. This combination of quality and stylish merchandise, value pricing and a stimulating in-store and online environment provides the Company's customers with a unique brand experience. More information can be found at Cautionary Statement Regarding Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or the Company's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "aim," "believe," "can," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "forecast," "plan," "possible," "intend," "target," or the negative of these words or other similar expressions that concern the Company's expectations, strategy, priorities, plans, or intentions. Such forward-looking statements involve known and unknown risks and uncertainties, many of which are outside of the Company's control, which may cause the Company's actual results to differ materially from forecasted results. Forward-looking statements in this communication include, but are not limited to, the effect of the transactions entered into with Beyond (the "Transactions") on the Company's business relationships, operating results and business generally; unexpected costs, charges or expenses resulting from the Transactions; potential litigation relating to the Transactions that could be instituted against Beyond, the Company or their affiliates' respective directors, managers or officers, including the effects of any outcomes related thereto; continued availability of capital and financing; the ability to obtain the various synergies envisioned between the Company and Beyond; the ability of the Company to successfully open new stores or re-brand existing Kirkland's Home stores under a Bed Bath & Beyond or other licensed brand; the ability of the Company to successfully market its products to the new customers and expand through new e-commerce platforms and to implement its plans, forecasts and other expectations with respect to its business after the completion of the Transactions and realize additional opportunities for growth and innovation; risks associated with the Company's liquidity including cash flows from operations and the amount of borrowings under the secured revolving credit facility; the Company's ability to successfully implement cost savings and other strategic initiatives intended to improve operating results and liquidity positions; the Company's actual and anticipated progress towards its short-term and long-term objectives including its multi-brand and omni-channel strategy; the risk that natural disasters, pandemic outbreaks, global political events, war and terrorism could impact the Company's revenues, inventory and supply chain; the continuing consumer impact of inflation and countermeasures, including high interest rates, the effectiveness of the Company's marketing campaigns; risks related to changes in U.S. policy related to imported merchandise, particularly with regard to the impact of tariffs on goods imported from China and strategies undertaken to mitigate such impact; the Company's ability to retain its senior management team; volatility in the price of the Company's common stock; the competitive environment in the home décor industry in general and in the Company's specific market areas; inflation, fluctuations in cost and availability of inventory, increased transportation costs and potential interruptions in supply chain, distribution systems and delivery network, including the Company's e-commerce systems and channels; the ability to control employment and other operating costs, availability of suitable retail locations and other growth opportunities; disruptions in information technology systems including the potential for security breaches of the Company's information, or our customers' information, seasonal fluctuations in consumer spending, and economic conditions in general and other risks detailed in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 10-K filed with the SEC on March 29, 2024 and subsequent filings. All information provided in this communication is as of the date hereof, and the Company undertakes no duty to update this information unless required by law. Any changes in assumptions or factors on which such statements are based could produce materially different results. These forward-looking statements should not be relied upon as representing the Company's assessment as of any date subsequent to the date of this communication. Contact: Investor Relations Kirkland's, Inc. Mike Madden 1-615-872-4800 Investor Relations ICR Caitlin Churchill KIRK@ 1-203-682-8200 Media Kirkland's, Inc. media@ Non-GAAP Financial Measures This business update and the related fireside chat contain certain non-GAAP financial measures, including EBITDA and adjusted EBITDA. These measures are not in accordance with, and are not intended as alternatives to, GAAP financial measures. The Company uses these non-GAAP financial measures internally in analyzing our financial results and believes that they provide useful information to analysts and investors, as a supplement to GAAP financial measures, in evaluating the Company's operational performance. The Company defines EBITDA as net income before interest, the provision for income tax and depreciation. Adjusted EBITDA is defined as EBITDA adjusted to remove asset impairment, stock-based compensation expense, due to the non-cash nature of this expense, severance, as it fluctuates based on the needs of the business and does not represent a normal recurring operating expense, and any financing related legal or professional fees that, due to their nature, did not qualify for capitalization as deferred debt or equity issuance costs. Non-GAAP financial measures are intended to provide additional information only and do not have any standard meanings prescribed by GAAP. Use of these terms may differ from similar measures reported by other companies. Each non-GAAP financial measure has its limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of the Company's results as reported under GAAP. The following table shows a preliminary unaudited non-GAAP measure reconciliation of net income to EBITDA and adjusted EBITDA (in thousands) for the periods indicated: 13-Week Period Ended 14-Week Period EndedFebruary 1, 2025 February 3, 2024Net income$ 7,882 $ 10,117 Income tax benefit (233)(201) Interest expense 1,683902 Other income (142)(153) Depreciation 2,2692,862EBITDA 11,45913,527Adjustments: Asset impairment(1) 77325Stock-based compensation expense(2) 233295Beyond transaction costs not qualifying for capitalization(3) 159—Severance charges(4) 5838Total adjustments 527658Adjusted EBITDA$ 11,986 $ 14,185 (1) Asset impairment charges are related to property and equipment, software costs and cloud computing implementation costs. (2) Stock-based compensation expense includes amounts amortized to expense related to equity incentive plans. (3) Consulting and legal fees incurred related to the Company's transaction with Beyond that, due to their nature, did not qualify for capitalization as deferred debt or equity issuance costs. Given the magnitude and scope of this strategic transaction, the Company considers the incremental consulting and legal fees incurred not reflective of the ongoing costs to operate its business. (4) Severance charges include expenses related to severance agreements and permanent store closure compensation costs. View original content to download multimedia: SOURCE Kirkland's, Inc. Sign in to access your portfolio
