Home Furnishings Retailer Kirkland's Stock Climbs As It Forecasts Stronger Profitability In Q4: Details

Kirkland's Inc KIRK reported Q3 FY23 sales of $116.4 million, missing the consensus of $121.0 million.

Adjusted EPS loss of $(0.45) beat the analyst consensus loss of $(0.53).

Comparable same-store sales decreased by 9.2%, including an 8.5% Y/Y decline in e-commerce sales on a drop in traffic and average tickets.

Gross profit margin expanded to 26.3% from 25.0% a year ago on improved merchandise margin.

Adjusted EBITDA loss reached $(3.2) million from $(1.7) million the prior year.

As of October 28, 2023, the company held a cash balance of $5.8 million, with $62.0 million of outstanding debt under its $90 million senior secured revolving credit facility.

Interim CEO Ann Joyce said, "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." 

The American retail chain has lost 26.1% in stock value year-to-date.

Price Action: KIRK shares are trading higher by 7.82% at $2.62 premarket on the last check Thursday.

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