- Kirkland's Inc (NASDAQ:KIRK) reported a fourth-quarter FY21 sales decline of 9.6% year-on-year, to $176.19 million, beating the consensus of $170.49 million.
- Comparable same-store sales decreased 8.5%, and e-commerce sales declined 9.1%.
- The gross profit margin contracted 470 basis points Y/Y to 33.3%. The operating margin was 7.9%, and operating income for the quarter halved to $14 million.
- Adjusted EBITDA of $20.3 million declined 40.8% Y/Y.
- Adjusted EPS of $0.84 beat the analyst consensus of $0.64.
- Kirkland's held $25 million in cash and equivalents as of January 29, 2022.
- "As we've previously disclosed, the fourth quarter's holiday shopping season had its challenges with inconsistent traffic patterns and broader supply chain constraints that impacted our financial results," said CEO Steve Woodward.
- Kirkland's now expects a slower pace of its merchandise-driven transformation strategy due to current macro-environment conditions affecting consumer sentiment. As a result, the company is extending its timelines to achieve specific financial targets.
- The company expects ongoing macro constraints to impact its profitability and traffic in the near term.
- Price Action: KIRK shares are trading lower by 5.21% at $11.10 on the last check Thursday.
