Notable News Spotlight: Kirkland’s, Inc. (NASDAQ: KIRK)

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On 18 May 2020, Kirkland’s, Inc. (NASDAQ: KIRK) changed 1.24% to recent value of $0.83. The stock transacted 275864 shares during most recent day however it has an average volume of 460K shares. It spotted trading -83.66% off 52-week high price. On the other end, the stock has been noted 48.23% away from the low price over the last 52-weeks.

Kirkland’s, Inc. (KIRK) recently stated financial results for the 13-week and 52-week periods ended February 1, 2020.

Net sales for the 13 weeks ended February 1, 2020 reduced 3.1% to $209.4M contrast to $216.1M for the 13 weeks ended February 2, 2019. Kirkland’s did not open or close any stores during the period, ending the year with 432 stores. Comparable store sales, including e-commerce sales, reduced 2.7% contrast to a decrease of 3.3% in the prior-year quarter. Negative brick-and-mortar traffic was partially offset by an improvement in average ticket. The 37.9% increase in e-commerce sales was driven by a raise in transactions.

Gross profit declined from 34.4% to 29.8% of net sales for the 13 weeks ended February 1, 2020, primarily driven by a decline in merchandise margin from increased promotional activity. Incremental promotions also led to deleverage through the supply chain from more units needed to achieve sales. Total operating expenses, not including depreciation and asset impairment charges, increased from 24.7% to 25.9% of net sales for the 13 weeks ended February 1, 2020Because of a raise in severance costs, stock compensation expense and a supplies write-off. Adjusted for certain one-time and non-cash special items, operating expenses, not including depreciation and asset impairment charges, reduced by $2.2M, or 30 basis points as a percentage of net sales for the 13 weeks ended February 1, 2020.

Net loss for the 13 weeks ended February 1, 2020 was $4.9M, or $0.35 per diluted share, contrast to net income of $14.2M, or $0.95 per diluted share, for the 13 weeks ended February 2, 2019. Adjusted for certain one-time and non-cash special items, net income for the 13 weeks ended February 1, 2020 was $0.59 per diluted share.

Net sales for the 52 weeks ended February 1, 2020 reduced 6.7% to $603.9M contrast to $647.1M for the 52 weeks ended February 2, 2019. Comparable store sales, including e-commerce sales, reduced 7.1% contrast to a decrease of 1.3% in the prior-year period. Kirkland’s opened five stores and closed one during the 52-week period ended February 1, 2020. Negative brick-and-mortar traffic was the primary driver of the decline. The 25.3% increase in e-commerce sales was driven by a gain in transactions partially offset by a drop in average ticket.

“We completed a great deal in 2019 to evolve our merchandise assortment and improve the omni-channel experience,” stated Woody Woodward, Chief Executive Officer. “We’re encouraged that some of the hard work began to take hold in the fourth quarter, with strong e-commerce growth and better revenues in sections of the assortment including furniture and tabletop.

“Fourth quarter results also reflect additional steps to right size our infrastructure with the planned closure of 28 under-performing stores in the first quarter and about $14M in additional expense reductions as we transition to 2020. We believe there are more opportunities to streamline our supply chain, and we’ll continue to optimize our store base and related expenses.”

KIRK has a gross margin of 27.40% and an operating margin of -8.80% while its profit margin remained -8.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained 80.50% for this year while earning per share for the next 5-years is expected to reach at 15.00%.  The company has 13.93M of outstanding shares and 12.84M shares were floated in the market. According to the most recent quarter its current ratio was 0.9 that represents company’s ability to meet its current financial obligations. The price moved ahead of -3.52% from the mean of 20 days, -0.66% from mean of 50 days SMA and performed -31.84% from mean of 200 days price. Company’s performance for the week was 2.49%, 0.79% for month and YTD performance remained -33.88%.

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