Kirkland's Reports First Quarter 2015 Results

NASHVILLE, Tenn., May 21, 2015 /PRNewswire/ -- Kirkland's, Inc. KIRK today reported financial results for the 13-week period ended May 2, 2015.

Net sales for the 13 weeks ended May 2, 2015, increased 9.3% to $118.3 million compared with $108.3 million for the 13 weeks ended May 3, 2014. Comparable store sales for the first quarter of fiscal 2015, including e-commerce sales, increased 3.0% compared with a comparable store sales increase of 5.0% in the prior-year quarter. Kirkland's opened one store and closed three during the first quarter, bringing the total number of stores to 342 at quarter end.

Net income for the 13 weeks ended May 2, 2015, increased 23% to $2.5 million, or $0.14 per diluted share. Adjusted net income for the 13 weeks ended May 2, 2015, increased 41% to $2.9 million, or $0.16 per diluted share. Adjusted net income for the first quarter of 2015 excludes a $0.02 per diluted share charge related to the retirement of the Company's previous CEO. The Company reported net income of $2.1 million, or $0.12 per diluted share, for the 13 weeks ended May 3, 2014.

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."

"We are encouraged by the current momentum in the business," continued Mr. Madden. "Customer reaction to our assortments has been positive as indicated by strong conversion, and our real estate plans remain on track for the second half of the year. Our long-term confidence in the business is underscored by the announcement of a $1.50 per-share special dividend, made in a separate release this morning." 

Fiscal 2015 Outlook

Second Quarter Fiscal 2015 Outlook
The Company issued guidance for the second quarter ending August 1, 2015, for a loss of $(0.10) to $(0.13) per diluted share.  Net sales are expected to be in the range of $115 million to $116 million with a comparable store sales increase in the range of 5% to 7%. Historically, the Company's second quarter sales and margins are sequentially lower than the first quarter due to traffic patterns and typical promotional activity. We expect an unfavorable comparison to the second quarter of 2014 due to the reversal of a shrinkage accrual in the year ago quarter, which provided a benefit to that quarter amounting to $0.02 per diluted share. Additionally, during the second quarter of 2015, the Company plans to open a net total of 14 stores versus four in the prior-year quarter, which will result in higher pre-opening expenses for the quarter. 

Special Cash Dividend
The Company's board of directors declared a special cash dividend of $1.50 per share on its common stock. The special dividend will be paid on June 19, 2015 to stockholders of record as of the close of business on June 5, 2015.

Investor Conference Call and Web Simulcast
Kirkland's will host a conference call today, May 21, 2015, at 11:00 a.m. ET. The number to call for the interactive teleconference is (412) 317-0790. A replay of the conference call will be available through Friday, May 29, 2015, by dialing (412) 317-0088 and entering the confirmation number, 10065466.

A live broadcast of Kirkland's quarterly conference call will be available online at the Company's website www.kirklands.com under Investor Relations or http://www.videonewswire.com/event.asp?id=102303 on May 21, 2015, beginning at 11:00 a.m. Eastern time. 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 decor in the United States. Although originally focused in the Southeast, the Company has grown beyond that region and currently operates 342 stores in 35 states. 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, product availability and growth opportunities, seasonal fluctuations, 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 April 14, 2015.  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.

 

 

 

 

 

 

 

 

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SOURCE Kirkland's, Inc.