Kirkland’s Inc.’s (KIRK) fourth-quarter 2011 earnings of 78 cents a share came in ahead of the Zacks Consensus Estimate of 74 cents per share. However, earnings were short of the prior-year quarter’s figures by 11.42%.
For fiscal year 2011, Kirkland’s earnings of 95 cents per share slipped 25.8% from the year-ago earnings. It however surpassed the Zacks Consensus estimate by 4 cents.
Quarter in Detail
Kirkland’s net sales went up 6.8% year over year to $149.1 million from $139.6 million in the year-ago quarter. Consolidated comparable store sales slipped 1.4% compared with a 7.9% decrease in the prior-year quarter.
On a year-over-year basis, gross profit expanded 8.5% to $64.1 million. Kirkland posted an operating income of $24.1 million, as against an operating income of $22.2 million in the year-ago quarter.
Other Financial Update
Kirkland’s exited the quarter with cash and cash equivalents of $83.12 million and no debt.
The Company opened 11 stores and closed 6 stores during fourth quarter 2011, bringing the total number of stores to 309 as of quarter’s end.
In addition, Kirkland’s repurchased 1,194,992 shares of common stock for a total of $15.4 million.
About $15.4 million are remaining under the company’s repurchase authorization. The Company has 18.4 million of common stock outstanding.
Guidance
Kirkland’s expects to open approximately 35 to 45 new stores for fiscal 2012, representing a square footage growth of 9% to 13%.
The Company expects net sales to increase in the range of 10% to 12% year on yearduring fiscal 2012. Currently, Kirkland’s has a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. On a long term basis, we have an “Underperform” rating on the stock.
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