Home decor retailer Kirkland's hits 3-year low after Q2 sales disappoint
06/09/2023 15:28
(Updates)
** Shares of home furnishing retailer Kirkland's Inc
KIRK.O fall as much as 19% to an over 3-year low of $2 in
morning trade
** Q2 comparable sales decline 9.7%, net sales down at $89.5
mln vs $102.1 mln a year earlier
** Co sees declines in store traffic and transaction size on
softer demand for home decor and furniture
** While macro-economic challenges have certainly impacted
our results, there are a number of other challenges that we are
working to resolve - interim CEO Ann Joyce
** Co ended Q2 with inventory levels 30% below last year;
also saw merchandise margin increase by 320 bps vs last year as
supply chain snags tempered
** Q2 net loss narrowed to $19.4 mln, or a loss of
$1.51/shr, vs year-ago net loss of $25.7 mln, or $2.02/shr
** Stock below 50-, 100- and 200-day exponential moving
averages since Aug, 16; it had lost ~25% YTD as of last close
(Reporting by Juveria Tabassum in Bengaluru)
((Juveria.Tabassum@thomsonreuters.com;))