Kirkland's Reports Fourth Quarter And Fiscal 2017 Results

NASHVILLE, Tenn., March 16, 2018 /PRNewswire/ -- Kirkland's, Inc. (NASDAQ: KIRK) today reported financial results for the 14-week and 53-week periods ended February 3, 2018.

Net sales for the 14 weeks ended February 3, 2018 were $224.6 million compared with $203.2 million for the 13 weeks ended January 28, 2017. The extra week in fiscal 2017 was responsible for approximately $10.0 million of net sales during the fourth quarter. On a 13-week comparison, comparable store sales, including e-commerce sales, increased 2.0% against a decline of 4.6% in the prior year. Kirkland's opened five stores and closed two during the period, bringing the total number of stores to 418 at year end.

Net sales for the 53 weeks ended February 3, 2018 were $634.1 million compared with $594.3 million for the 52 weeks ended January 28, 2017. On a 52-week comparison, comparable store sales, including e-commerce sales, increased 0.3% against a decline of 2.9% in the prior year. Kirkland's opened 31 stores and closed 17 during the 53-week period ended February 3, 2018.

For the 14 weeks ended February 3, 2018, the Company reported net income of $12.9 million, or $0.79 per diluted share compared with net income of $14.5 million, or $0.90 per diluted share, for the 13 weeks ended January 28, 2017.

For the 53 weeks ended February 3, 2018, the Company reported net income of $5.3 million, or $0.33 per diluted share compared with net income of $11.0 million, or $0.68 per diluted share, for the 52 weeks ended January 28, 2017.

"Our fourth quarter results were in line with our February performance update and reflected the ongoing shift in consumer buying patterns in the retail space," said Mike Madden, President and Chief Executive Officer. "We made important investments in 2017 to improve execution and refocus our merchandise assortments, and these are driving better results in metrics including average ticket, conversion and clearance margin. We're encouraged by our progress and believe these initiatives can improve earnings performance as they continue to mature. We're also pleased with the 37% growth rate and improved efficiency we achieved in e-commerce during 2017."

"As we look to 2018, we plan to build on this momentum and address the changing landscape by prioritizing investments such as 'Buy Online, Pickup in Store,' the expansion of our vendor direct program, and enhancements to the mobile experience while maintaining our focus on operating discipline. We're also fast-tracking more testing to drive innovation and pursue new avenues for growth. Our goal is to leverage our omni-channel platform to inspire customers within our well-established value model combining style and affordability. Our balance sheet remains strong, providing us with the flexibility to invest further in these critical areas while returning excess cash to shareholders."

Fiscal 2018 Outlook
Kirkland's is introducing its outlook for fiscal 2018 as follows:

This updated performance outlook is based on current information as of March 16, 2018. The information on which this outlook is based is subject to change, and investors are cautioned that 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 hold its earnings call for the fourth quarter later today at 11:00 a.m. ET. Participating on the call will be Mike Madden, President and Chief Executive Officer, and Nicole Strain, Interim Chief Financial Officer. The number to call for the interactive teleconference is (412) 542-4163. A replay of the conference call will be available through Friday, March 23, 2018, by dialing (412) 317-0088 and entering the confirmation number, 10116761.

A live webcast of Kirkland's quarterly conference call will be available online at ir.kirklands.com or https://www.webcaster4.com/Webcast/Page/957/24474 on March 16, 2018, 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 420 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 and are subject to the finalization of the Company's quarterly financial and accounting procedures. 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, fluctuations in cost and availability of products, interruptions in supply chain and distribution systems, including our e-commerce systems and channels, 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.