Home Décor Retailer Kirkland’s Anticipates 1.8 Pct Comp Sales Rise

Home décor specialty retailer Kirkland’s, Inc. reported as part of its preliminary Q4 results on Friday (Feb. 19) that it anticipates a comparable sales rise of 1.8 percent, with the inclusion of online commerce expansion of 35.5 percent, according to an announcement.

Kirkland’s said it anticipates between $1.35 and $1.45 in adjusted earnings per diluted share. The company foresees net sales of roughly $195 million in contrast to $209.4 million in the prior-year period, with 59 fewer retail locations. It also anticipates a $100 million cash balance without outstanding debt at the conclusion of the year and $140 million in overall 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,” CEO Woody Woodward said in the announcement. “These record earnings results reflect the appeal of our merchandise assortments with customers and the earnings leverage in the business from our cost and infrastructure changes.”

Woodward said online shopping revenues offset the less formidable store traffic in December brought on by more coronavirus cases, merchandise shortages and early sell-through of holiday merchandise.

“With cash expected to be approximately $100 million and total liquidity of $140 million, we are well positioned to fund our continued growth and deploy capital strategically,” Woodward said.

Kirkland’s, Inc. currently runs more than 370 retail locations in 35 states and an online shopping website. Its stores offer products such as lights, scents, mirrors, fabrics, art, wall décor, furniture and home décor. They also provide a wide array of holiday items amid seasonal periods.

In separate retail earnings news, Ace Hardware Corporation recently reported as part of its financial results that revenues increased by 39.2 percent between Q4 2019 and Q4 2020. “The fourth quarter was yet again one of the most extraordinary in Ace’s history,” President and CEO John Venhuizen said in a previous announcement.