Kirkland’s Comp Sales Surge Amid Recovery In Home Furnishings

Kirkland’s Comp Sales Surge Amid Recovery In Home Furnishings

June 01, 2021 at 03:39PM

Kirkland’s, a home décor retailer that runs 370 brick-and-mortar locations and an eCommerce website, reported that comparable sales surged by approximately 75 percent and eCommerce saw growth of 42 percent, according to a Tuesday (June 1) announcement.

Kirkland’s reported that net sales jumped by 60 percent to $123.6 million. The company also reported that operating expenses fell to 30.9 percent of net sales from 49 percent in the prior year. In addition, it reported that gross profit margin increased by $30 million to 32.6 percent from 13.3 percent in the prior year.

As for its overall results, Kirkland‘s posted 12 cents in adjusted earnings per diluted share, in contrast to an adjusted loss per diluted share of $1.27 in the prior-year period.

“The ongoing recovery in home furnishings provides a number of catalysts for Kirkland’s, but we believe much of our success can be attributed to the path we have charted. We are creating a formidable business model built on sustainable cost and infrastructure changes, digital transformation, a team that is excelling in innovation and productivity, and a merchandise assortment that is delivering a distinct point of view as a value-oriented specialty retailer,” CEO Woody Woodward said in the announcement.

Kirkland’s stores offer a curated collection of products including furniture, holiday décor, wall décor, textiles, art, decorative accessories, mirrors, art, fragrances and other products.

The news comes as Kirkland’s reported that its comparable sales increased by 1.8 percent, with eCommerce growth of 35.5 percent for the fourth quarter of 2020. At the time, the company also posted a 37.7 percent gross profit margin. Woodward said that the firm’s “record earnings for the fourth quarter” reflected “the appeal of our merchandise assortments with customers and the earnings leverage in the business from our cost and infrastructure changes.” He also noted that the firm continues to develop Kirkland’s into a “value-oriented specialty retailer.”