Kirkland's Posts Q4 Earnings Below Street View; CEO To Retire

Kirkland's Inc KIRK reported a fourth-quarter FY22 sales decline of 7.7% year-on-year to $162.47 million, missing the consensus of $164.67 million.
Comparable same-store sales decreased 6.1% versus last year, including a 5.5% decline in e-commerce sales.
Gross profit margin contracted 850 basis points Y/Y to 24.8%. The operating loss for the quarter was $(3.2) million versus an income of $14 million last year.
Adjusted EBITDA was $2.6 million compared to $20.3 million in the prior year quarter.
Adjusted EPS loss of $(0.09) missed the analyst consensus of $0.11.
Kirkland's held $5.2 million in cash and equivalents as of Jan. 28, 2023. Net cash used in operating activities for the year totaled $(18.1) million.
Management Change: The company's President and Chief Executive Officer (CEO) Steve Woodward will retire, effective May 31, 2023.
Ann Joyce, who currently serves as a board member, will be stepping into the role of Interim CEO until a successor is named.
Kirkland's also announced that Amy Sullivan, its Senior Vice President and Chief Merchandising and Stores Officer, has been promoted to the role of President and Chief Operating Officer.
Price Action: KIRK shares are trading higher by 1.75% at $2.90 in premarket on the last check Tuesday.

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