| May 18, 2010 |
| Kirkland's Reports First Quarter Results |
First Quarter Highlights:
• Comparable store sales increase 12.6%
• Reports Diluted EPS of $0.32 versus $0.17 ($0.12 Adjusted)
• Total sales increased 12.2% despite 15 fewer stores on average from a year ago
• Cash balance improves to $73.6 million versus $31.1 million a year ago
• Highest first quarter earnings as a public company
• Provides guidance for second quarter and performance goals for fiscal 2010
NASHVILLE, Tenn. (May 18, 2010) — Kirkland's, Inc. (NASDAQ: KIRK) today reported financial results for the 13-week period ended May 1, 2010.
Net sales for the 13-week period ended May 1, 2010 increased 12.2% to $93.5 million compared with $83.3 million for the 13-week period ended May 2, 2009. Comparable store sales for the first quarter of fiscal 2010 increased 12.6% compared with an increase of 5.2% in the prior-year period. The Company opened 6 stores and closed 4 stores during the quarter to end the period with 281 stores.
The Company reported net income of $6.5 million, or $0.32 per diluted share, for the first quarter of fiscal 2010 compared with net income of $3.5 million, or $0.17 per diluted share, for the first quarter of fiscal 2009. Income tax expense for the first quarter of fiscal 2009 included a benefit of approximately $1.0 million, or $0.05 per diluted share, related to the reversal of a portion of the valuation allowance on the Company's deferred tax assets established in prior periods.
As discussed in previous quarters, the Company believes that presenting adjusted net income and earnings per share for its 2009 periods to reflect normalized tax rates is instrumental in judging the Company's performance for fiscal 2010 and future periods when the Company is expected to incur a higher effective tax rate. See "Reconciliation of Non-GAAP Financial Information" below.
Robert Alderson, Kirkland's President and Chief Executive Officer, said, "We had an outstanding quarter with across-the-board improvement in all merchandise categories, albeit against some of the easier comparisons we will face this year. Strong comparable store sales and merchandise margins combined with lower occupancy and depreciation expenses provided one of our best operating margin performances in recent memory. The results were consistent with the considerable momentum we established in fiscal 2009 and very strong consumer activity in February and March. April was affected by the Easter calendar shift and a slight slowdown in retail business, but we recorded positive comparable store sales of 3% for the month.
Click on attachment for entire release and financial tables.
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