Kirkland's Q1 Profit Tops Views, Shares Rise

Shares of

gained more than 3 percent in pre-market trading after the company reported stronger-than-expected earnings for the fiscal first quarter on Thursday. The Brentwood, Tennessee-based company posted quarterly net income of $2.5 million, or $0.14 per share, compared to $2.1 million, or $0.12 per share, in the year-ago period. Excluding non-recurring items, the company earned $0.16 per share. Its revenue climbed 9.3 percent year-over-year to $118.3 million from $108.3 million. However, analysts were expecting earnings of $0.11 per share on revenue of $117.7 million. Its comparable store sales for the first quarter rose 3.0 percent, versus a 5.0 percent growth in the year-ago quarter. During the quarter, Kirkland's opened 1 store and closed 3 stores. Kirkland's board declared a special cash dividend of $1.50 per share on its common stock. Mike Madden, Kirkland's President and Chief Executive Officer, said, "We're pleased with our sales and earnings growth for the quarter. Sales came in at the top end of our guidance range, and earnings exceeded our expectations driven by strong merchandise margins and expense leverage in stores and e-commerce. Weather and the West Coast port delays presented challenges in the quarter, but our teams executed extremely well." For the full year, Kirkland's projects earnings of $1.18 to $1.23 per share, on total sales growth of 10 percent to 12 percent. For the second quarter, the company expects a loss of $0.13 to $0.10 per share, on revenue of $115 million to $116 million. Kirkland's shares rose 3.22 percent to $25.95 in pre-market trading.