NASHVILLE, Tenn., May 23, 2017 /PRNewswire/ -- Kirkland's,
Inc. (NASDAQ: KIRK) today reported financial results for the
13-week period ended April 29,
2017.
Net sales for the 13 weeks ended April
29, 2017 increased 2.3% to $132.8
million compared with $129.9
million for the 13 weeks ended April
30, 2016. Comparable store sales for the first quarter of
fiscal 2017, including e-commerce sales, decreased 3.8% compared
with an increase of 0.5% in the prior-year quarter. Kirkland's
opened 8 stores and closed 11 during the first quarter of fiscal
2017, bringing the total number of stores to 401 at quarter
end.
The net loss for the 13 weeks ended April
29, 2017 was $1.4 million, or
$0.09 per diluted share compared with
net income of $0.9 million, or
$0.06 per diluted share, for the 13
weeks ended April 30, 2016.
"Although we had a slow start to February, we experienced
improvement in sales trends as we progressed through the quarter,"
said Mike Madden, Chief Executive
Officer. "Highlights for the quarter included stabilization in
several key product categories and definitive progress on our path
to improve our merchandise assortment. Operating expenses and
inventory levels remained well-controlled, and I am very pleased
with the first quarter's e-commerce results, which achieved a 32%
increase in revenue and reflected improvements in our operating
efficiency."
"Overall, we're encouraged about the progress we're making on
our strategic priorities and believe the groundwork we laid during
the first quarter will help us establish better merchandising and
marketing execution," continued Mr. Madden. "We've identified
significant opportunities to drive the business, and we remain
confident in our long-term outlook."
Fiscal 2017 Outlook
Kirkland's maintained its fiscal 2017 outlook given on
March 10, 2017, which provides for
diluted earnings per share in the range of $0.50 to $0.65.
This performance outlook is based on current information as of
May 23, 2017. The information
on which this outlook is based is subject to change, and the
Company may update its full year business outlook or any portion
thereof at any time for any reason.
Investor Conference Call and Web Simulcast
Kirkland's will hold its earnings call for the first quarter
later today at 11:00 a.m. ET.
Participating on the call will be Mike
Madden, President and Chief Executive Officer, and
Adam Holland, Vice President and
Chief Financial Officer. The number to call for the interactive
teleconference is (412) 542-4163. A replay of the conference call
will be available through Tuesday, May 30,
2017, by dialing (412) 317-0088 and entering the
confirmation number, 10106773.
A live broadcast of Kirkland's quarterly conference call will be
available online at ir.kirklands.com or
https://www.webcaster4.com/Webcast/Page/957/20999 on May 23, 2017, beginning at 11:00 a.m. ET. The online replay will follow
shortly after the call and continue for one year.
About Kirkland's, Inc.
Kirkland's, Inc. was founded in 1966 and is a specialty retailer
of home décor in the United
States. Although originally focused in the Southeast, the
Company has grown beyond that region and currently operates 401
stores in 36 states as well as an e-Commerce enabled website,
www.kirklands.com. The Company's stores present a broad
selection of distinctive merchandise, including framed art,
mirrors, candles, lamps, picture frames, accent rugs, garden
accessories and artificial floral products. The Company's
stores also offer an extensive assortment of gifts, as well as
seasonal merchandise. More information can be found at
www.kirklands.com.
Forward-Looking Statements
Except for historical information contained herein, the
statements in this release are forward-looking and made pursuant to
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve known
and unknown risks and uncertainties, which may cause Kirkland's
actual results to differ materially from forecasted results.
Those risks and uncertainties include, among other things, the
competitive environment in the home décor industry in general and
in Kirkland's specific market areas, inflation, possibility of new
tax legislation, fluctuations in cost and availability of products,
interruptions in supply chain and distribution systems, 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 Kirkland's or its customers'
information, seasonal fluctuations in consumer spending, and
economic conditions in general. Those and other risks are
more fully described in Kirkland's filings with the Securities and
Exchange Commission, including the Company's Annual Report on Form
10-K filed on March 31, 2017 and
subsequent reports. Kirkland's disclaims any obligation to
update any such factors or to publicly announce results of any
revisions to any of the forward-looking statements contained herein
to reflect future events or developments.
KIRKLAND'S,
INC.
|
UNAUDITED
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
13-Week
Period
Ended
|
|
13-Week
Period
Ended
|
|
April
29,
|
|
April
30,
|
|
2017
|
|
2016
|
Net
sales
|
$
132,841
|
|
$
129,911
|
Cost of
sales
|
85,217
|
|
80,374
|
Gross
profit
|
47,624
|
|
49,537
|
|
|
|
|
Operating
expenses:
|
|
|
|
Operating
expenses
|
43,505
|
|
42,040
|
Depreciation
|
6,397
|
|
5,973
|
Operating (loss)
income
|
(2,278)
|
|
1,524
|
|
|
|
|
Other (income)
expense, net
|
(25)
|
|
14
|
(Loss) income before
income taxes
|
(2,253)
|
|
1,510
|
Income tax (benefit)
expense
|
(818)
|
|
594
|
Net (loss)
income
|
$
(1,435)
|
|
$
916
|
|
|
|
|
(Loss) earnings per
share:
|
|
|
|
Basic
|
$
(0.09)
|
|
$
0.06
|
Diluted
|
$
(0.09)
|
|
$
0.06
|
|
|
|
|
Shares used to
calculate (loss) earnings per share:
|
|
|
|
Basic
|
15,913
|
|
15,780
|
Diluted
|
15,913
|
|
16,101
|
KIRKLAND'S,
INC.
|
UNAUDITED
CONSOLIDATED CONDENSED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
29,
|
|
January
28,
|
|
April
30,
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
59,804
|
|
$
63,937
|
|
$
38,203
|
|
Inventories,
net
|
|
|
|
74,669
|
|
75,447
|
|
69,107
|
|
Other current
assets
|
|
|
|
10,789
|
|
13,656
|
|
13,627
|
|
Total current
assets
|
|
|
145,262
|
|
153,040
|
|
120,937
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
110,869
|
|
110,870
|
|
108,626
|
|
Non-current deferred
income taxes
|
|
1,144
|
|
1,198
|
|
-
|
|
Other
assets
|
|
|
|
5,815
|
|
5,038
|
|
2,659
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
|
$
263,090
|
|
$
270,146
|
|
$
232,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
|
$
29,915
|
|
$
37,898
|
|
$
24,753
|
|
Income taxes
payable
|
|
|
4,891
|
|
6,273
|
|
-
|
|
Other current
liabilities
|
|
|
31,633
|
|
30,270
|
|
27,647
|
|
Total current
liabilities
|
|
|
66,439
|
|
74,441
|
|
52,400
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current deferred
income taxes
|
|
957
|
|
479
|
|
1,191
|
|
Deferred rent and
other long-term liabilities
|
|
62,431
|
|
61,413
|
|
57,028
|
|
Total liabilities
|
|
|
|
129,827
|
|
136,333
|
|
110,619
|
|
|
|
|
|
|
|
|
|
|
|
|
Net shareholders'
equity
|
|
|
133,263
|
|
133,813
|
|
121,603
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
263,090
|
|
$
270,146
|
|
$
232,222
|
|
KIRKLAND'S,
INC.
|
UNAUDITED
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
13-Week
Period
Ended
|
|
13-Week
Period
Ended
|
|
|
April
29,
|
|
April
30,
|
|
|
2017
|
|
2016
|
Net cash
provided by (used in):
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
$
1,358
|
|
$
2,660
|
|
Investing
activities
|
(5,587)
|
|
(8,682)
|
|
Financing
activities
|
96
|
|
(127)
|
|
|
|
|
|
Cash and
cash equivalents:
|
|
|
|
|
Net
decrease
|
(4,133)
|
|
(6,149)
|
|
Beginning of
the period
|
63,937
|
|
44,352
|
|
End of the
period
|
$
59,804
|
|
$
38,203
|
Contact:
|
Kirkland's
|
SCR
Partners
|
|
Adam
Holland
|
Jeff Black: (615)
760-3679
|
|
(615)
872-4800
|
Tripp Sullivan: (615)
760-1104
|
|
|
IR@Kirklands.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kirklands-reports-first-quarter-2017-results-300461827.html
SOURCE Kirkland's, Inc.