Kirkland's Reports Third Quarter EPS of $.11

Kirkland's, Inc. KIRK today reported financial results for the 13-week and 39-week periods ended October 30, 2010. Net sales for the 13-week period ended October 30, 2010, increased 0.4% to $92.7 million compared with $92.4 million for the 13-week period ended October 31, 2009. Comparable store sales for the third quarter of fiscal 2010 decreased 2.4% compared with an increase of 11.3% in the prior-year period. The Company opened 15 stores and closed 5 stores during the quarter to end the period with 296 stores. Net sales for the 39-week period ended October 30, 2010, increased 4.7% to $275.7 million compared with $263.4 million for the 39-week period ended October 31, 2009. Comparable store sales for the 39 weeks ended October 30, 2010, increased 3.5% compared with an increase of 7.6% in the prior-year period. The Company opened 28 stores and closed 11 stores during the 39-week period. The Company reported net income of $2.3 million, or $0.11 per diluted share, for the third quarter of fiscal 2010 compared with net income of $5.8 million, or $0.27 per diluted share ($0.23 per diluted share adjusted), for the third quarter of fiscal 2009. Income tax expense for the third quarter of fiscal 2009 included a benefit of approximately $1.0 million, or $0.04 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.