Kirkland’s Inc. Comp Sales Rise 1.8 Pct

Kirkland’s Inc., which runs more than 370 stores in 35 states, reported as part of its financial results that comparable sales climbed 1.8 percent, including eCommerce growth of 35.5 percent, for the fourth quarter of 2020, according to a Friday (March 12) announcement.

The home décor retailer also reported a 37.7 percent gross profit margin, in contrast with 29.8 percent for the prior year, marking a rise of 790 basis points, or $11 million. As for its overall results, Kirkland’s reported $1.40 adjusted earnings per diluted share on $194.9 million in net sales.

“We are pleased to report record earnings for the fourth quarter, which reflect the appeal of our merchandise assortments with customers and the earnings leverage in the business from our cost and infrastructure changes,” Chief Executive Officer Woody Woodward said in the announcement. The executive also said that the company continues to develop Kirkland’s into a “value-oriented specialty retailer.”

“Our strategy has been to incrementally improve the quality and design of our merchandise while maintaining our opening price points and delivering value for our customers,” Woodward said.

Kirkland’s Inc. stores offer a curated collection of products such as furniture, holiday décor, art, wall décor, mirrors, textiles, lamps, fragrances and other home decorating products.

The news comes as Kirkland’s, Inc. reported as part of its preliminary Q4 results that it expects a comparable sales rise of 1.8 percent, including an online commerce expansion of 35.5 percent.

The retailer previously said it expected between $1.35 and $1.45 in adjusted earnings per diluted share. It had anticipated net sales of approximately $195 million compared to $209.4 million in the prior-year period, with 59 fewer stores, in addition to a $100 million cash balance without outstanding debt at the end of the year and $140 million in total liquidity.

“Our expected fourth-quarter earnings per share are the highest we have achieved as a public company, and are a fitting end to an extraordinary year for Kirkland’s,” Woodward said in a previous announcement.