Home decor retailer Kirkland's Inc. (KIRK), said Friday its first-quarter profit slid from last year, mostly on lower margins that offset growth in sales. Nevertheless, earnings for the quarter were in line with Street estimates.
Moving forward, Kirkland's provided a weak outlook for the second quarter and slashed its expectations for the full year. Following the results, Kirkland's shares sank 16 percent in afternoon trade on the Nasdaq.
Kirkland's sales for the quarter rose 3.6 percent from last year. On a same-store basis, sales slid 1.2 percent, compared to a decline of 8.4 percent last year. These were more than offset by an increase in cost of sales and operating expenses.
CEO Robert Alderson said the company saw a change in customer sentiment in the latter half of the quarter, coupled with with promotional activity. As a result, margin and same-store sales were impacted and the trend also set into early second quarter.
Nashville, Tennessee-based Kirkland reported first-quarter net income of $2 million or $0.10 per share, compared to $3.2 million or $0.15 per share last year.
On average, four analysts polled by Thomson Reuters expected earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter were $97.8 million, compared to $94.4 million last year.
Kirkland's expects second-quarter net loss of $0.07 to $0.11 per share, while analysts expect a loss of $0.03 per share. The company has forecast second-quarter sales of $94 million to $96 million.
For fiscal year 2012, Kirkland's now expects earnings of $0.87 to $0.97 per share, compared to its prior estimate of $1.10 to $1.15 per share. Analysts currently expect earnings of $1.06 per share for the quarter.
Sales for fiscal year 2012 are expected to increase in the range of 7 to 9 percent, compared to the company's earlier forecast of 10 to 12 percent growth.
KIRK is trading at $10.73, down $2.12 or 16.50%.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.