Kirkland (KIRK) stock: why it fell 5.63%

  • Kirkland’s (KIRK) stock price fell 5.63% in the last trading session. That is why.

Kirkland’s (KIRK) stock price fell 5.63% in the last trading session.

Why: Second quarter results

Results: Kirkland’s reported second-quarter EPS of ($1.31), down $0.51 from analysts’ estimates of ($0.80). And revenue for the quarter was $102.1 million versus the consensus estimate of $97.55 million.

Summary of Q2 2022:

— Net sales amounted to $102.1 million, with comparable sales down 8.6%.

— Gross profit margin of 18.1%.

– GAAP net loss of $25.7 million, or a loss of $2.02 per diluted share, and adjusted net loss of $16.7 million, or an adjusted loss of $1.31 per diluted share.

— Adjusted EBITDA of ($16.4) million.

— Ended the period with a cash balance of $10.3 million, outstanding debt of $55.0 million and total liquidity of $30.3 million.

— Closing of four stores to end the quarter with 356 stores.

KEY QUOTES:

“Our efforts in the second quarter focused on re-engaging our customers in-store and online to drive sales in a challenging consumer spending environment. Throughout the quarter, we intentionally increased promotions to run on inventory levels, which resulted in margin compression, but an improved sales trend compared to the first quarter on our omnichannel platform. Specifically, we experienced notable sales momentum in our furniture category, which gives us confidence that we remain on track to drive growth in this segment of the market. Additionally, our home delivery program has seen steady adoption as we strive to streamline processes and improve efficiencies. »

“Looking ahead, early indicators show demand for our harvest collection, and we are pleased to report that we have seen improvements in sales and gross profit margin during the first weeks of August. majority of our harvest inventory already in place and our holiday inventory on schedule, we believe we are well positioned to meet the seasonal demand expected in the second half of the year.

“For the remainder of fiscal 2022, we are focused on improving our liquidity position and properly managing our inventory. As the broader consumer environment remains volatile, we also plan to continue to actively adjust our promotional strategy to drive sales and optimize our inventory. We are confident in our ability to maintain a lean operating cost structure and generate cash flow through the upcoming harvest and holiday seasons as we strive to begin repaying our borrowings. Overall, we are committed to pursuing our long-term transformation strategy and unlocking the full potential of Kirkland’s Home.

— Steve “Woody” Woodward, President and CEO of Kirkland’s Home

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