Kirkland’s ends year on an upbeat note
E-commerce helped drive Kirkland’s sales during the fourth quarter.
The home décor retailer reported preliminary results for the fourth quarter (ended Jan. 31) that included e-commerce growth of 35.5% and a comparable sales increase of 1.8%. Strong post-holiday demand resulted in a January comparable sales increase of over 15%, with positive store comparable sales and e-commerce growth of 60%.
Kirkland’s estimates fourth-quarter net sales of approximately $195.0 million compared with $209.4 million in the year-ago period and with 59 fewer stores open in the most recent quarter. It expects earnings per share of $1.30 to $1.40; with adjusted earnings per share of $1.35 to $1.45.
"Our expected fourth-quarter earnings per share are the highest we have achieved as a public company and are a fitting end to an extraordinary year for Kirkland's," said Woody Woodward, CEO, Kirkland’s, which has 372 stores. "These record earnings results reflect the appeal of our merchandise assortments with customers and the earnings leverage in the business from our cost and infrastructure changes. The strength of the omnichannel strategy was evident as e-commerce revenues were able to offset the weaker store traffic in December caused by higher COVID cases, inventory shortages, and early sell-through of holiday products. With cash expected to be approximately $100 million and total liquidity of $140 million, we are well-positioned to fund our continued growth and deploy capital strategically."