Kirkland's Reports Third Quarter 2017 Results

NASHVILLE, Tenn., Nov. 21, 2017 /PRNewswire/ -- Kirkland's, Inc. (NASDAQ: KIRK) today reported financial results for the 13-week and 39-week periods ended October 28, 2017.

Net sales for the 13 weeks ended October 28, 2017 increased 4.9% to $145.0 million compared with $138.2 million for the 13 weeks ended October 29, 2016. Comparable store sales, including e-commerce sales, increased 0.7% compared with a decrease of 2.3% in the prior-year quarter. Excluding the impact of Hurricanes Harvey and Irma during the quarter, comparable store sales increased 2.0%. Kirkland's opened 10 stores and closed one during the quarter, bringing the total number of stores to 415 at quarter end.

Net sales for the 39 weeks ended October 28, 2017 increased 4.7% to $409.5 million compared with $391.2 million for the 39 weeks ended October 29, 2016. Comparable store sales, including e-commerce sales, decreased 0.6% compared with a decrease of 2.0% in the prior-year period. Kirkland's opened 26 stores and closed 15 during the 39-week period ended October 28, 2017.

For the 13 weeks ended October 28, 2017, the Company reported a net loss of $2.4 million, or ($0.15) per diluted share compared with a net loss of $0.8 million, or ($0.05) per diluted share, for the 13 weeks ended October 29, 2016. The total estimated earnings impact of Hurricanes Harvey and Irma, including lost sales and property losses, was ($0.05) per diluted share for the quarter.

For the 39 weeks ended October 28, 2017, the Company reported a net loss of $7.6 million, or ($0.48) per diluted share compared with a net loss of $3.5 million, or ($0.22) per diluted share, for the 39 weeks ended October 29, 2016.

"We're pleased with our third quarter performance given the significant challenges we faced," said Mike Madden, Chief Executive Officer. "Initiatives to control SKUs, optimize promotional activity and rework targeted areas of our assortment are driving positive results, and we achieved a gain in comparable store sales despite disruptions from Hurricanes Harvey and Irma. The e-commerce channel continued its strong momentum, with sales at kirklands.com up approximately 40% as we focus on improving the omni-channel experience, the online assortment and our fulfillment operation."

"We're confident about our prospects for the fourth quarter. We are off to a strong start, with our holiday seasonal assortment performing exceptionally well and our marketing and promotional efforts gaining traction. We have a solid plan in place for the holiday season, with a number of initiatives in place to engage and delight our customers."

Fiscal 2017 Outlook

Including the impact of the hurricanes, Kirkland's is updating its outlook for fiscal 2017 as follows:

This updated performance outlook is based on current information as of November 21, 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.

Investor Conference Call and Web Simulcast

Kirkland's will issue its earnings release for the third quarter of 2017 before the market opens on Tuesday, November 21, 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 Tuesday, November 28, 2017, by dialing (412) 317-0088 and entering the confirmation number, 10114218.

A live webcast of Kirkland's quarterly conference call will be available online on the Company's Investor Relations Page on November 21, 2017, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for one year.

About Kirkland's, Inc.

Kirkland's, 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 418 stores in 36 states as well as an e-Commerce enabled website, www.kirklands.com.  The Company's 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 Company's 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 Kirkland's 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 Kirkland's specific market areas, inflation, possibility of new tax legislation, fluctuations in cost and availability of products, interruptions in supply chain and distribution systems, adverse weather conditions, 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 Kirkland's or its customers' information, seasonal fluctuations in consumer spending, and economic conditions in general. Those and other risks are more fully described in Kirkland's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed on March 31, 2017 and subsequent reports. Kirkland's 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.

SOURCE Kirkland's, Inc.