Sterne Agee Lowers KIRK Estimates

Sterne Agee is lowering its estimates on Kirkland's Inc. KIRK.

“Guidance is for Q1 EPS of $0.10-$0.14 on sales of $94-$96m with negative HSD SSS anticipated,” Sterne Agee writes. “For FY11 management is anticipating EPS to be flat to down slightly vs. $1.24 in FY10, with flat to slightly negative SSS but revenues +9-12% due to new stores. We are lowering our estimate for Q1 to $0.13 from $0.25, which brings our estimate for the full year to $1.24 from $1.35.

“Additionally we are lowering our estimate for FY12 to $1.52 from $1.61. On the sourcing front, the company is currently working on fall buys, and although they are hearing talk of cost increases later in the year (perhaps MSD), have thus far not been meaningfully impacted. Fuel surcharges are already being seen, but the more troublesome impact in this regard is expected to be on the consumer wallet.”

Kirkland's Inc. closed Thursday at $14.39.