In a letter to Kirkland’s board, Osmium Partners said, “As the largest shareholder, Osmium believes that Kirkland’s share price trades at a material discount to what a strategic buyer would pay for the company. The management team at Kirkland’s, a well-known brand with a 50-year heritage, recently guided to full-year positive EBITDA for the first time in several years. Consequently, we believe the company is materially undervalued at 0.05x sales, or more than $35 in sales per share, including more than $9 in e-commerce sales per share. In addition, we believe a strategic alternative or partnership could create material equity value by leveraging Kirkland’s 330 brick-and-mortar retail stores to accelerate growth by cross-selling since management has implied nearly 40% incremental EBITDA margins…Based on Kirkland’s 2024 trajectory, we believe a strategic buyer paying $7 per share or $90 million could achieve a 57% IRR over three years…Given Kirkland’s market cap, the favorable capital market conditions, and our firm belief the company holds significant strategic value for public and private companies and private equity, we expect the board to do what is in the best interest of shareholders and explore strategic alternatives in earnest.” Shares of Kirkland’s jumped 17% to $2.17 in after-hours trading on Friday.