Kirkland’s Q1 Results: GAAP EPS Beats Expectations, Revenue Falls Short
December 11, 2023
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Over the years, Kirkland’s ($NASDAQ:KIRK) has sought to provide customers with unique and well-designed products at affordable prices.
Earnings
The company reported total revenue of $114.79 million, a 12.4% increase year-over-year, and net income of $0.63 million, a 102.5% decrease from the prior year. Over the past three years, total revenue decreased from $114.79 million to $89.5 million. Despite this revenue decrease, the company still managed to beat analyst estimates for GAAP earnings per share. Despite the weaker performance in ecommerce, KIRKLAND’S still managed to post positive results and beat expectations for GAAP EPS. Overall, KIRKLAND’S showed strong growth in its retail segment and was able to beat analysts’ expectations for GAAP EPS.
However, the company fell short on total revenue and ecommerce sales were not as strong as expected.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kirkland’s. More…
| Total Revenues | Net Income | Net Margin |
| 465.22 | -41.66 | -8.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kirkland’s. More…
| Operations | Investing | Financing |
| -2.63 | -4.32 | 1.46 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kirkland’s. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 285.83 | 293.11 | -0.56 |
Key Ratios Snapshot
Some of the financial key ratios for Kirkland’s are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.9% | 74.9% | -8.1% |
| FCF Margin | ROE | ROA |
| -1.5% | 559.9% | -8.3% |
Price History
On Thursday, KIRKLAND’S shares opened at $2.6 and closed at $2.4, up by 0.8% from the prior closing price of 2.4. The company reported its first quarter results, with Adjusted Earnings Per Share (EPS) beating expectations. However, revenue fell short of analysts’ estimates. Despite the revenue shortfall, investors were pleased with the company’s overall performance as it achieved its goal of achieving adjusted profitability. Live Quote…
Analysis
As GoodWhale, we performed an analysis of KIRKLAND’S wellbeing. Here, our Star Chart indicates that KIRKLAND’S is strong in profitability, but weak in asset, dividend, growth. We classified KIRKLAND’S as ‘elephant’, a type of company that is rich in assets after deducting off liabilities. This type of company may be of interest to investors who are seeking passive income or those looking for a secure and steady return on investments in the long-term. Moreover, KIRKLAND’S has an intermediate health score of 4/10 considering its cashflows and debt. This suggests that the company is likely to safely ride out any crisis without the risk of bankruptcy. More…
Peers
The company operates over 350 stores in 37 states and offers its products through its e-commerce website. Kirkland’s main competitors are Max Stock Ltd, bebe stores Inc, and Bed Bath & Beyond Inc. These companies are all leaders in the retail industry and offer similar products to Kirkland’s.
– Max Stock Ltd ($OTCPK:MAXFF)
Max Stock Ltd is a company that has a market cap of 226.6M as of 2022. The company has a ROE of 33.56%. The company does business in the stock market.
– bebe stores Inc ($OTCPK:BEBE)
L Brands, Inc. operates as a specialty retailer of women’s intimate and other apparel, beauty and personal care products, home fragrance products, and accessories under the Victoria’s Secret, Bath & Body Works, Pink, La Senza, Henri Bendel, and Mast General Store brands. The company operates in three segments: Victoria’s Secret Stores, Bath & Body Works, and Victoria’s Secret Direct. It has a market cap of $67.46M and a Return on Equity of -2.11%.
– Bed Bath & Beyond Inc ($NASDAQ:BBBY)
Bed Bath & Beyond Inc. is an American multinational chain of domestic merchandise retail stores. Bed Bath & Beyond operates through 1,507 stores in the United States, Puerto Rico, Canada, and Mexico. The company’s market capitalization is $422.28 million and its return on equity is 146.77%. Bed Bath & Beyond was founded in 1971 and is headquartered in Union, New Jersey. The company sells a variety of home goods, including bedding, bath products, kitchen items, home decor, and small appliances.
Summary
Kirkland’s, Inc. reported its quarterly earnings results on June 5th. However, the company’s revenue of $116.4M missed expectations by $4.53M. Investors should take the results with caution as the company’s net loss was driven by a write-down of long-lived assets and a goodwill impairment charge.
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