In the fourth quarter, Kirkland’s Home turned a profit and beat Wall Street estimates.
An analyst consensus estimate published by Yahoo Finance called for earnings per adjusted diluted share of 42 cents and earnings of $167.2 million.
Comparable sales for the quarter on a 13-week basis gained 1.7% year over year. Net sales were $165.9 million versus $162.5 million in the previous-year period quarter.
Operating income was $10.7 million versus an operating loss of $3.2 million in the year-earlier quarter, while adjusted operating income was $11.3 million versus an operating loss of $1 million.
Kirkland’s net loss for the full fiscal year was $27.8 million, or $2.16 per diluted share, versus a net loss of $44.7 million, or $3.52 per diluted share, in the year before, the company maintained.
Comparable sales decreased 4.8% year over year. Net sales were $468.7 million versus $498.8 million in the year previous.
Operating loss in 2023 was $24.4 million versus an operating loss of $42.8 million in the year-earlier, while adjusted operating loss was $20.4 million versus an operating loss of $37.8 million.
Kirkland’s shuttered 16 stores and relocated one store to end the year with 330 locations. It ended the year with a cash balance of $3.8 million and $34 million in outstanding debt.
In announcing the financial results, Amy Sullivan, CEO of Kirkland’s Home, said, “Fiscal 2023 was a year of significant change across our entire organization that culminated in a positive holiday sales season and healthy momentum to build off of going into 2024. The fourth quarter marked our first full quarter of capitalizing on the strategic repositioning initiatives we’ve implemented, which generated positive comparable sales results, strong gross margins, and healthy operating cash flow. Although we remain in the early stages of our strategic repositioning, we are pleased with the results we were able to generate to close out the year. As we move into fiscal 2024, we will continue prioritizing targeted engagement with our customer base and have been pleased with the in-store traffic levels we’ve sustained to start the year. Consumers remain highly price sensitive, and while we continue to see dampened demand for larger ticket items, the demand for seasonally relevant décor and accessories remains high, which is more than offsetting the lower average ticket trends we’re experiencing thus far. E-commerce traffic has been challenging in comparison to stores to start the year, and we are adjusting our promotional and marketing plans as well as making technical enhancements to support profitable sales growth online. We remain vigilant in managing our expenses, both operating and capital, as top-line and margin improvements continue to take hold.”
She said that the company is pleased with its direction and sees opportunities to capitalize on and return to profitable growth.
“With additional capital to improve our liquidity position, a strategy that is generating positive momentum, and a nimble team in place focused on operational excellence, we believe we are well positioned heading into fiscal 2024 and beyond. We remain committed to achieving our long-term strategic goals and unlocking the true potential of Kirkland’s Home,” Sullivan said.
