Kirkland's Shares Slide On Q1 Earnings Miss

Kirkland's Inc KIRK reported a first-quarter FY22 sales decline of 16.4% to $103.29 million, missing the consensus of $110.46 million.
Comparable same-store sales decreased 15.8% versus last year. Sales in e-commerce declined 23.6%.
The gross profit margin contracted 520 basis points Y/Y to 27.4%. The operating loss for the quarter was $(11.1) million versus an income of $2.1 million last year.
Adjusted EBITDA loss was $(5.8) million versus an income of $7.7 million the previous year.
Adjusted EPS loss of $(0.62) missed the analyst consensus of $(0.24).
Kirkland's held $5.4 million in cash and equivalents as of April 30, 2022. Net cash used in operating activities for the quarter totaled $(43.6) million.
"We were impacted by the shift in consumer spending stemming from rising interest rates, inflationary pressures and geopolitical conflicts that adversely affected our customer traffic and sales," said CEO Steve Woodward.
Citing the current macro environment constraints, KIRK suspended the timelines in which it hopes to achieve long-term financial targets.
Price Action: KIRK shares are trading lower by 4.13% at $6.50 in premarket on the last check Tuesday.