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30.11.2023 07:00
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KIRKLAND'S HOME REPORTS THIRD QUARTER 2023 RESULTS
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PR Newswire
NASHVILLE, Tenn., Nov. 30, 2023
NASHVILLE, Tenn., Nov. 30, 2023 /PRNewswire/ -- Kirkland's, Inc. (Nasdaq: KIRK) ("Kirkland's Home" or the "Company"), a specialty retailer of home décor and furnishings, announced financial results for the 13-week and 39-week periods ended October 28, 2023.
Third Quarter 2023 Summary
- Net sales were $116.4 million, with comparable sales decreasing 9.2%.
- Gross profit margin improved 130 basis points year-over-year to 26.3%.
- Operating loss was flat year-over-year at $6.7 million.
- Adjusted EBITDA loss of $3.2 million.
- Ended the period with a cash balance of $5.8 million and $62.0 million in outstanding debt.
- Closed one store and relocated one store to end the quarter with 339 stores.
Management Commentary
"The third quarter demonstrated execution of our strategic repositioning as we experienced sequential improvements in traffic and comparable sales each month of the quarter, along with expanded gross margins," said Ann Joyce, interim CEO of Kirkland's Home. "Over the last six months, we have spent a significant amount of time assessing every aspect of the business and acted quickly to implement changes to better position us going into our ever-important holiday selling season. During the quarter, we saw promising indicators that our pivots are beginning to work. We increased lapsed customer reactivations, drove improved traffic and conversion with less promotional activity, reduced operating expenses, and improved our inventory position for the remainder of the year.
"While persistent challenges in the macro-economy continue to weigh on consumers, we believe that our renewed emphasis on value and seasonally relevant décor is beginning to resonate with our customers. In fact, the trend continued into the fiscal fourth quarter, which has started off with a low single-digit increase in comparable sales for the month of November at a much-improved merchandise margin as we continue to execute against our holiday promotional strategy.
"Although there is still much work to be done, we are optimistic and encouraged by our recent improvements. We expect solid year-over-year improvement in profitability during the fourth quarter as we continue to progress towards our goal of returning to our historical average adjusted EBITDA margin in the mid-to-high single-digit range. In fiscal 2024, we will look to build off this recent momentum and continue to execute upon our strategy to return the Company to profitable growth."
Third Quarter 2023 Financial Results
Net sales in the third quarter of 2023 were $116.4 million, compared to $131.0 million in the prior year quarter. Comparable same-store sales decreased 9.2%, including an 8.5% decline in e-commerce sales. The decrease was primarily driven by a decline in traffic and a decrease in average ticket, partially offset by increased conversion.
Gross profit in the third quarter of 2023 was $30.7 million, or 26.3% of net sales, compared to $32.7 million, or 25.0% of net sales in the prior year quarter. The improvement as a percentage of net sales was primarily a result of improved merchandise margin, partially offset by the deleverage of fixed cost components on the lower sales base.
Operating loss in the third quarter of 2023 and 2022 remained consistent at $6.7 million, as lower operating costs, including reduced corporate compensation expense, offset the decline in gross profit dollars.
EBITDA in the third quarter of 2023 was a loss of $3.9 million compared to a loss of $2.6 million in the prior year quarter. Adjusted EBITDA in the third quarter of 2023 was a loss of $3.2 million compared to a loss of $1.7 million in the prior year quarter.
Net loss in the third quarter of 2023 improved to $6.4 million, or a loss of $0.50 per diluted share, compared to a net loss of $7.3 million, or a loss of $0.58 per diluted share in the prior year quarter.
As of October 28, 2023, the Company had a cash balance of $5.8 million, with $62.0 million of outstanding debt under its $90.0 million senior secured revolving credit facility. As of November 30, 2023, the Company had $35.0 million of outstanding debt under its senior secured revolving credit facility.
Investor Conference Call and Web Simulcast
Kirkland's Home management will host a conference call to discuss its financial results for the third quarter ended October 28, 2023, followed by a question-and-answer period with Interim CEO Ann Joyce, President and COO Amy Sullivan, and EVP and CFO Mike Madden.
Date: Thursday, November 30, 2023
Time: 9:00 a.m. Eastern Time
Toll-free dial-in number: (855) 560-2577
International dial-in number: (412) 542-4163
Conference ID: 10184344
Please call the conference telephone number 10-15 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the Company's website at www.kirklands.com. The online replay will follow shortly after the call and remain available for one year.
A telephonic replay of the conference call will be available after the conference call through December 7, 2023.
Toll-free replay number: (877) 344-7529
International replay number: (412) 317-0088
Replay ID: 7702205
About Kirkland's, Inc.
Kirkland's, Inc. is a specialty retailer of home décor and furnishings in the United States, currently operating 339 stores in 35 states as well as an e-commerce website, www.kirklands.com, under the Kirkland's Home brand. The Company provides its customers with an engaging shopping experience characterized by a curated, affordable selection of home décor along with inspirational design ideas. This combination of quality and stylish merchandise, value pricing and a stimulating online and store experience allows the Company's customers to furnish their home at a great value. More information can be found at www.kirklands.com.
Forward-Looking Statements
Except for historical information contained herein, certain statements in this release, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the finalization of the Company's quarterly financial and accounting procedures. Forward-looking statements deal with potential future circumstances and developments and are, accordingly, forward-looking in nature. You are cautioned that such forward-looking statements, which may be identified by words such as "anticipate," "believe," "expect," "estimate," "intend," "plan," "seek," "may," "could," "strategy," and similar expressions, 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. Those risks and uncertainties include, among other things, 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 actual and anticipated progress towards its short-term and long-term objectives including its brand strategy, the risk that natural disasters, pandemic outbreaks (such as COVID-19), 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 raising 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, continued 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 our 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 its customers' information, seasonal fluctuations in consumer spending, and economic conditions in general. Those and other risks are more fully described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed on April 4, 2023 and subsequent reports. Forward-looking statements included in this release are made as of the date of this release. Any changes in assumptions or factors on which such statements are based could produce materially different results. Except as required by law, the Company 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.
| Contact: | Kirkland's Home | Gateway Group, Inc. |
| | Mike Madden | Cody Slach and Cody Cree |
| | (615) 872-4800 | |
| | | (949) 574-3860 |
| KIRKLAND'S, INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share data) | | |||||||
| | | |||||||
| | | 13-Week Period Ended | | |||||
| | | October 28, | | | October 29, | | ||
| | | 2023 | | | 2022 | | ||
| Net sales | | $ | 116,365 | | | $ | 130,962 | |
| Cost of sales | | | 85,712 | | | | 98,275 | |
| Gross profit | | | 30,653 | | | | 32,687 | |
| Operating expenses: | | | | | | | ||
| Compensation and benefits | | | 19,841 | | | | 20,794 | |
| Other operating expenses | | | 16,104 | | | | 16,757 | |
| Depreciation (exclusive of depreciation included in cost of sales) | | | 1,043 | | | | 1,577 | |
| Asset impairment | | | 316 | | | | 219 | |
| Total operating expenses | | | 37,304 | | | | 39,347 | |
| Operating loss | | | (6,651) | | | | (6,660) | |
| Other expense, net | | | 1,036 | | | | 624 | |
| Loss before income taxes | | | (7,687) | | | | (7,284) | |
| Income tax (benefit) expense | | | (1,290) | | | | 57 | |
| Net loss | | $ | (6,397) | | | $ | (7,341) | |
| Loss per share: | | | | | | | ||
| Basic | | $ | (0.50) | | | $ | (0.58) | |
| Diluted | | $ | (0.50) | | | $ | (0.58) | |
| Weighted average shares outstanding: Werbung Mehr Nachrichten zur Kirkland's Aktie kostenlos abonnieren
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