| Aug 26, 2009 |
| Kirkland's Reports Second Quarter Results |
Highlights:
• Comparable store sales increase 6.1%
• Reports EPS of $0.17 versus loss of $0.09 a year ago
• Raises guidance assumptions for fiscal 2009 on first half performance
• Strong cash flow raises cash on balance sheet to $38.5 million
NASHVILLE, Tenn. (August 26, 2009) — Kirkland's, Inc. (NASDAQ: KIRK) today reported financial
results for the 13-week and 26-week periods ended August 1, 2009.
Net sales for the 13-week period ended August 1, 2009, were $87.7 million compared with $87.7 million for the 13-week period ended August 2, 2008. During the quarter, the Company operated 34 fewer stores on average than in the prior year. Comparable store sales for the second quarter of fiscal 2009 increased 6.1% compared with an increase of 2.8% in the second quarter of fiscal 2008. Comparable store sales in off-mall stores increased 6.3% for the second quarter, and comparable store sales in mall stores increased 5.5%. The Company opened 5 stores and closed 6 stores during the quarter to end the period with 291 stores.
Net sales for the 26-week period ended August 1, 2009, were $171.0 million compared with $171.8 million for the 26-week period ended August 2, 2008. Comparable store sales for the 26 weeks ended August 1, 2009 increased 5.7% compared with an increase of 3.5% in the prior year period. Comparable store sales in off-mall stores increased 5.3% for the period, and comparable store sales in mall stores increased 6.8%. The Company opened 8 stores and closed 16 stores during the 26-week period.
The Company reported net income of $3.4 million, or $0.17 per diluted share, for the 13-week period ended August 1, 2009, compared with a net loss of $1.7 million, or $0.09 per diluted share, for the 13-week period ended August 2, 2008. For the 26-week period, the Company reported net income of $6.9 million, or $0.34 per diluted share, compared with a net loss of $4.2 million, or $0.22 per diluted share in the prior-year period.
Robert Alderson, Kirkland's President and Chief Executive Officer, said, "We are pleased with the continuation of the positive trends in the business. Our product offering resonated well with our customers during the quarter, resulting in improved merchandise margins and increased traffic counts. A favorable operating cost environment, primarily from continued declines in freight expense and occupancy costs, enabled us to leverage our sales momentum and generate another strong quarter.
"Considering the tougher comparisons from a year ago, we are encouraged by our second quarter
performance. Our semi-annual Big Sale in July was very successful with promotions featuring compelling merchandise and less clearance activity due to clean inventories. Given the first half results and similar early third quarter trends, we have become more positive in our outlook assumptions for the year, but annual results will still depend heavily upon the success of the fourth quarter holiday selling season."
Click on attachment for entire release and financial tables.
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