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8-K - LIVE FILING - KIRKLAND'S, INC | htm_54545.htm |
KIRKLANDS
KIRKLANDS REPORTS FOURTH QUARTER SALES AND UPDATES
2016 OUTLOOK
NASHVILLE, Tenn. (February 3, 2017) Kirklands, Inc. (NASDAQ: KIRK) today reported sales for the 13-week and 52-week periods ended January 28, 2017.
Net sales for the 13 weeks ended January 28, 2017, increased 2.1% to $203.2 million compared with $199.0 million for the 13 weeks ended January 30, 2016. Comparable store sales for the fourth quarter of fiscal 2016, including e-commerce sales, decreased 4.6% compared with an increase of 1.3% in the prior-year quarter. Kirklands opened four stores and closed one during the fourth quarter of 2016, bringing the total number of stores to 404 at quarter end.
Net sales for the 52 weeks ended January 28, 2017, increased 5.8% to $594.3 million compared with $561.8 million for the 52 weeks ended January 30, 2016. Comparable store sales, including e-commerce sales, decreased 2.9% for the 52 weeks ended January 28, 2017, compared with an increase of 2.9% in the prior-year period. Kirklands opened 42 stores and closed 14 during the 52-week period.
We were not immune from the broader trends impacting much of the retail industry during the fourth quarter, said Mike Madden, President and Chief Executive Officer. Trends proved to be more difficult than we anticipated as strong sales on Black Friday were offset by weak pre-holiday traffic in December, and improved post-holiday sales were not enough to overcome Decembers softness. Additionally, heightened promotional activity had an impact on merchandise margin for the quarter. On a more positive note, we experienced another quarter of double-digit growth in our e-commerce business, and we managed operating expenses and inventories well throughout the season.
We enter 2017 with inventories on plan and a strong balance sheet, and remain confident about the long-term outlook for the business. Weve enhanced our management team, and were focused on improving our pricing and promotional mix, merchandise assortment composition, marketing execution, and in-store experience as part of our long-term strategy. We look forward to outlining these initiatives and our outlook for 2017 on our upcoming earnings conference call in March, continued Mr. Madden.
Based on the fourth quarter sales results, Kirklands now expects full year 2016 diluted earnings per share in the range of $0.56 to $0.61 compared with its prior guidance of $0.70 to $0.75 per diluted share. The updated performance outlook is based on current information as of February 3, 2017. The information on which this outlook is based is subject to change and the Company may update its full year business outlook or any portion thereof at any time for any reason.
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KIRK Reports Fourth Quarter Sales Results
Page 2
February 3, 2017
Investor Conference Call and Web Simulcast
Kirklands will issue its earnings release for the fourth quarter before the market opens on Friday, March 10, 2017, and will host a conference call on the same day at 11:00 a.m. ET. The number to call for the interactive teleconference is (412) 542-4163. A replay of the conference call will be available through Friday, March 17, 2017, by dialing (412) 317-0088 and entering the confirmation number, 10100654.
A live broadcast of Kirklands quarterly conference call will be available online at ir.kirklands.com or https://www.webcaster4.com/Webcast/Page/957/19538 on March 10, 2017, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for one year.
About Kirklands, Inc.
Kirklands, Inc. was founded in 1966 and is a specialty retailer of home décor in the United
States. Although originally focused in the Southeast, the Company has grown beyond that region and
currently operates 398 stores in 36 states. The Companys stores present a broad selection of
distinctive merchandise, including framed art, mirrors, candles, lamps, picture frames, accent
rugs, garden accessories and artificial floral products. The Companys stores also offer an
extensive assortment of gifts, as well as seasonal merchandise. More information can be found at
www.kirklands.com.
Forward-Looking Statements
Except for historical information contained herein, the statements in this release are
forward-looking and made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and
uncertainties, which may cause Kirklands actual results to differ materially from forecasted
results. Those risks and uncertainties include, among other things, the competitive environment in
the home décor industry in general and in Kirklands specific market areas, inflation, fluctuations
in cost and availability of products, interruptions in supply chain and distribution systems, the
ability to control employment, and other operating costs, availability of suitable retail locations
and other growth opportunities, disruptions in information technology systems including the
potential for security breaches of Kirklands or its customers information, seasonal fluctuations
in consumer spending, and economic conditions in general. Those and other risks are more fully
described in Kirklands filings with the Securities and Exchange Commission, including the
Companys Annual Report on Form 10-K filed on April 8, 2016. Kirklands disclaims any obligation
to update any such factors or to publicly announce results of any revisions to any of the
forward-looking statements contained herein to reflect future events or developments.
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