Kirkland's, Inc. (KIRK) - Bear of the Day

The market for home decor and gifts is highly competitive. Kirkland's (KIRK) primarily competes with specialty stores, department stores, discount stores, and catalog and Internet retailers that carry merchandise in one or more categories that Kirkland's does.

The global economic environment has been challenging for the past fifteen months. Declining real estate value, reduced lending by banks, solvency concerns of major financial institutions, increase in unemployment levels and significant volatility in the global financial markets have negatively impacted the level of consumer spending for discretionary items.

Over this period, Kirkland's also experienced a significant slowdown in customer traffic, which affected its revenues and margins. Our long-term Underperform recommendation on the stock indicates that it would perform well below the broader market. Our target price of $13.00, 10.4X 2011 EPS, reflects this view.
 
KIRKLANDS INC (KIRK): Free Stock Analysis Report
 
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