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Kirkland's Falls 25% On Q2 Earnings Miss Due To Shift In Consumer Purchasing Behavior

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Kirkland's (NASDAQ: KIRK) reported quarterly losses of $1.05 per share, which missed the analyst consensus estimate by 47.89 percent.

The company reported quarterly sales of $119.9 million, which missed the analyst consensus estimate of $124.83 million. This is a 10.45% decrease over sales of $133.899 million the same period last year.

"Overall trends remained challenging in the second quarter as our home décor customers continued to shift their shopping and purchasing patterns," said CEO Woody Woodward. "E-commerce sales re-accelerated in the second quarter, resulting in 22% growth over the prior year, while store traffic declined at a double-digit rate, pressuring margins with associated expense deleverage.

"Store traffic remains challenging, and we expect near-term financial results to be impacted by promotional activity to bring inventory back into alignment and increased marketing spend to drive traffic, highlight new product and target new customers."

Kirkland's shares were trading down 25% at $1.12 in Thursday’s pre-market session. The stock has a 52-week high of $11.77 and a 52-week low of $1.12.

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Posted-In: Earnings News Pre-Market Outlook

 

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