Thu, Sep 5, 8:09 PM (131 days ago)
Kirkland's, Inc. reported a challenging financial performance for the second quarter and the first half of fiscal 2024. For the 13-week period ended August 3, 2024, net sales decreased by 3.6% to $86.3 million, with a comparable sales decline of 1.7%. The gross profit margin improved to 20.5%, driven by better merchandise margins and reduced outbound freight costs. However, operating loss decreased to $13.3 million, marking a 26.4% improvement from the prior year. For the 26-week period, net sales fell 4.5% to $178 million, with a net loss of $23.3 million, an improvement from the $31.5 million loss reported in the same period last year. The company is facing liquidity challenges due to reduced consumer spending and inflationary pressures, which have impacted cash flow and operational strategies. To address these issues, Kirkland's has initiated cost-saving measures expected to yield $6 million in savings in the latter half of the fiscal year. The company also maintains a share repurchase plan with $26.3 million remaining. Overall, while there are signs of operational improvement, uncertainties remain regarding future performance amidst ongoing economic challenges.