Kirkland's Q4 Earnings Top Estimates, Predicts Slower Pace Of Transformation Strategy

Kirkland's Inc 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.

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