Kirkland’s Expects Record Earnings In Q4

Preliminary results released by Kirkland’s for the fourth fiscal quarter ended January 30 include expectation of earnings per diluted share of $1.30 to $1.40 and adjusted earnings per diluted share of $1.35 to $1.45, marketing a big step forward year over year.

In the year-previous period, Kirkland’s posted a loss per diluted share of 35 cents and an adjusted income per diluted share of 59 cents.

The company expects a comparable sales increase of 1.8%, including e-commerce growth of 35.5%, it stated. Strong post-holiday demand resulted in a January comp gain of more than 15% with positive store comparable sales and e-commerce growth of 60%. With 59 fewer stores in operation, Kirkland’s anticipates net sales for the quarter to come in at $195 million versus $209.4 million in the prior-year period. Its estimated cash balance stands at $100 million with no outstanding debt at year-end, with total liquidity of $140 million.

“Our expected fourth quarter earnings per share are the highest we have achieved as a public company and are a fitting end to an extraordinary year for Kirkland’s,” said Woody Woodward, Kirkland’s CEO. “These record earnings results reflect the appeal of our merchandise assortments with customers and the earnings leverage in the business from our cost and infrastructure changes. The strength of the omni-channel strategy was evident as e-commerce revenues were able to offset the weaker store traffic in December caused by higher COVID cases, inventory shortages and early sell-through of holiday product. With cash expected to be approximately $100 million and total liquidity of $140 million, we are well positioned to fund our continued growth and deploy capital strategically.”