Kirkland's Q2 Loss Narrows; Lifts FY13 Profit View - Quick Facts

(RTTNews) - Kirkland's Inc. (KIRK) reported that its second quarter of fiscal 2013 net loss narrowed to $0.6 million, or $0.03 per share, from $2.0 million, or $0.11 per share in the second quarter of fiscal 2012.

Net sales for quarter increased 6.7% to $97.1 million compared with $91.0 million last year. Comparable store sales, including e-commerce sales, for the second quarter of fiscal 2013 decreased 0.2% compared with a decrease of 3.6% in the prior-year quarter. Kirkland's opened 6 stores and closed 6 during the second quarter of fiscal 2013, bringing the total number of stores to 317 at quarter end.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.10 per share and revenues of $97.76 million for the second-quarter. Analysts' estimates typically exclude special items.

For the third quarter ending November 2, 2013, the company expects net income of $0.00 to $0.03 per diluted share compared with a net loss of $0.02 per share in the prior-year quarter. Net sales are expected to be $103 million to $105 million, with a modest increase in comparable store sales. The company expects to open approximately 10 stores and close approximately 3 stores during the quarter. Analysts expect the company to report earnings of $0.01 per share and revenues of $104.94 million for the third-quarter.

For the 52-week period ending February 1, 2014 or fiscal 2013, the company expects to open approximately 25 new stores and close approximately 20 stores. The majority of new store openings will occur by Thanksgiving with the balance opening after the holiday period, while the remaining closings will primarily occur after the holiday period.

Total sales for the 52-week fiscal 2013 are expected to increase approximately 3% to 4% compared with 53-week fiscal 2012. The comparable store sales are still expected to be flat to a slight increase for fiscal 2013. Previously, Total sales for the 52-week fiscal 2013 were expected to increase approximately 3% to 5% compared with 53-week fiscal 2012.

The company expects fiscal 2013 earnings per share to be in the range of $0.80 to $0.90. Earlier, the company expected fiscal 2013 earnings per share to be in the range of $0.75 to $0.85.

Street currently is looking for full-year 2013 earnings of $0.85 per share on annual revenues of $469.95 million.