Kirkland's Q4 Profit Down; Guides Q1, FY14 - Quick Facts

(RTTNews) - Kirkland's Inc. (KIRK) reported that its fourth-quarter net income dropped to $12.3 million or $0.69 per share from $14.3 million or $0.82 per share in the year ago quarter.

Net sales for the 13 weeks ended February 1, 2014, decreased 4.2% to $156.1 million compared with $162.9 million for the 14 weeks ended February 2, 2013. On a 13-week basis, comparable store sales for the fourth quarter of fiscal 2013, including e-commerce sales, were flat compared with a decrease of 2.6% in the prior-year quarter. Kirkland's opened 8 stores and closed 7 during the fourth quarter, bringing the total number of stores to 324 at quarter end.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.68 per share and revenues of $158.80 million for the fourth-quarter. Analysts' estimates typically exclude special items.

The company issued guidance for the first quarter ending May 3, 2014, of net income of $0.09 to $0.12 per share. Net sales are expected to be in the range of $105 million to $106 million with a comparable store sales increase in the range of 2% to 3%. The Company expects to open approximately 6 stores and close approximately 7 stores during the quarter. Analysts expect the company to report earnings of $0.10 per share and revenues of $106.87 million for the first-quarter.

For the 52-week period ending January 31, 2015 or "fiscal 2014", the company expects to achieve approximately 10% square footage growth with 35 to 40 new store openings and 10 to 15 store closings. New store openings will be weighted more toward the second half of the year, and store closings will be weighted more toward the first half of the year.

The company expects fiscal 2014 earnings per share to be in the range of $0.90 to $1.00. The Company expects its full year tax rate to be approximately 39%.

Total sales for fiscal 2014 are expected to increase approximately 8% to 10% compared with fiscal 2013. This level of sales performance would imply a comparable store sales increase of approximately 3% to 4% for fiscal 2014.

Capital expenditures in fiscal 2014 are estimated to range between $33 million and $36 million. Based on the above assumptions, the Company expects to generate positive cash flow in fiscal 2014.

Street currently is looking for fiscal year 2014 earnings of $1.06 per share on annual revenues of $503.02 million.