) fourth quarter 2012 earnings of 79 cents per share surpassed
the Zacks Consensus Estimate of 74 cents and the year-ago quarter
earnings by 6.8%. Earnings were, however, within the company's
guidance range. Kirkland generated modest earnings on the back of
higher sales and tight expense control.
Quarter in Detail
Kirkland's net sales climbed 9.2% to $162.9 million from
$149.1 million in the year-ago quarter primarily attributable to
increase in items per transactions. Sales were slightly above the
Zacks Consensus Estimate of $162.0 million and were within the
company guidance range of $160 million - $163 million.
Comparable store sales, including e-commerce and excluding the
extra week in the last quarter, declined 2.6% compared with an
increase of 1.4% in the year-ago quarter.
Positive comparative sales results in Florida and Louisiana
were offset by below-average performance in the Southeast and far
West. Strong sales of merchandise like mirrors, fragrance, and
seasonals were offset by a decline in decorative accessories,
art, furniture, frames and impulse.
The company opened 17 stores and closed 2 during the quarter.
Kirkland had a total of 323 stores at the end of 2012.
On a year-over-year basis, gross profit climbed 3.1% to $66.1
million, while gross margin contracted 240 basis points to 40.6%
of sales due to higher merchandise expenses.
Full Year Results
For the full year 2012, Kirkland posted earnings of 77 cents
per share, surpassing the Zacks Consensus Estimate by 10%.
Earnings lagged the year-ago quarter earnings by 18.9%.
Net sales climbed 4.2% to $448.4 million from $430.3 million
in the year-ago quarter, primarily attributable to an increase in
the number of items per transaction. Sales were slightly above
the Zacks Consensus Estimate of $448.0 million.
Kirkland exited the quarter with cash and cash equivalents of
$67.8 million compared with $34.3 million in the prior quarter.
Deferred rent and other long-term liabilities stood at $44.2
million compared with $42.1 million in the last quarter.
Management expects earnings per share for fiscal 2013 in a
range of 70 cents-85 cents. Kirkland's expects fiscal 2013 total
sales to increase approximately 5% to 7% compared with fiscal
Kirkland expects to open 25 to 35 new stores and close
approximately 10 to 15 stores. Store openings will be skewed
toward the second and third quarters of 2013. The company expects
capital expenditure in fiscal 2013 to be in a range of $22
million to $25 million.
The Zacks Consensus Estimates for the first quarter and fiscal
2013 are pegged at 9 cents and 84 cents, respectively.
Kirkland currently holds a Zacks Rank #3 (Hold). Other stocks
in the retail and wholesale sector worth considering include
New York & Company Inc.
H & M Hennes & Mauritz AB
), all of which carry a Zacks Rank #2 (Buy).
HENNES&MAURIT (HNNMY): Get Free Report
KIRKLANDS INC (KIRK): Free Stock Analysis
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ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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