Kirkland’s Inc. (NASDAQ: KIRK) missed market estimates for revenue and earnings in the second quarter of 2019. Analysts had forecast a loss of $0.67 per share on revenue of $126 million. Shares plummeted over 11% in premarket hours on Thursday.
On a GAAP basis, the company reported a net loss of $17.1 million, or $1.21 per share, versus $6.7 million, or $0.43 per share, last year. Adjusted net loss was $14.9 million, or $1.05 per share.
Net sales fell 10.5% year-over-year to $119.9 million. Comparable store sales, including e-commerce sales, decreased 11.2% compared to a decrease of 3.9% in the prior-year quarter.
The comp stores sales decline was driven by a drop in store sales, partly offset by a growth in ecommerce sales. Store sales were hurt by negative store traffic and a decline in average ticket, partly offset by an improvement in conversion. Gains in traffic and conversion helped drive a 22% growth in ecommerce sales but were partly offset by a drop in average ticket.
During the quarter, Kirkland’s faced challenges due to shifts in shopping patterns of customers and saw double-digit declines in store traffic which in turn weighed on margins. The company expects near-term financial results to be impacted by higher promotional and marketing activity to drive traffic and bring in new customers.
Kirkland’s opened one store and closed one store during the quarter, bringing the total number of stores to 431 at quarter-end.
For fiscal 2019, the company expects net loss to range from $1.25 to $1.50 per share.
Get access to timely and accurate verbatim transcripts that are published within hours of the event.
Most Popular
IPO Alert: Here’s what to look for when CaliberCos goes public
The massive slowdown in the IPO market continued in the second half as the challenges posed by high inflation and interest rate hikes weighed on investor confidence. Meanwhile, there is
CarMax (KMX) Stock: Does the current dip offer a buying opportunity?
The automotive sector is one of the worst affected by the combination of high inflation and rising interest rates. Consumers have become more cautious and are prioritizing their purchases with
Ultimax Digital gears up for $10mln IPO. Here’s all you need to know
The IPO market has witnessed muted activity this year, and things don’t seem to have improved in the second half. The upcoming public listing of video game technology firm Ultimax
