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Kirkland's (KIRK)
NASDAQ:KIRK
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Kirkland's
(NASDAQ:KIRK)
43Neutral
Kirkland's (KIRK) vs. S&P 500 (SPY)
Market Cap
$26.05M
Dividend YieldN/A
Average Volume (3M)147.00K
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth-5.83%
EPS Growth18.04%
CountryUS
Employees835
SectorConsumer Cyclical
Sector Strength75
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.54
Shares Outstanding22,454,348
10 Day Avg. Volume155,369
30 Day Avg. Volume147,001
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.06
Price to Sales (P/S)0.00
P/FCF Ratio-1.90
Enterprise Value/Market Cap7.92
Enterprise Value/Revenue0.11
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda-6.40
Forecast
1Y Price Target
$2.00Price Target Upside72.41% Upside
Rating ConsensusHold
Number of Analyst Covering1
Kirkland's Business Overview & Revenue Model
Company DescriptionKirkland's, Inc. is a leading specialty retailer of home decor in the United States. The company operates in the retail sector, primarily focusing on offering a wide range of stylish and affordable home furnishings and accessories. Kirkland's product assortment includes furniture, lighting, textiles, wall decor, decorative accessories, and seasonal items, catering to a diverse customer base seeking to enhance their living spaces with unique and trendy designs.
How the Company Makes MoneyKirkland's generates revenue primarily through the sale of its home decor products via its network of physical retail locations and its e-commerce platform. The company's key revenue streams include in-store sales, online sales, and seasonal promotions that attract customers seeking decor for various occasions and holidays. By offering an extensive range of products at competitive prices, Kirkland's aims to appeal to budget-conscious consumers. Additionally, the company leverages its brand reputation and customer loyalty programs to drive repeat purchases, while strategic marketing campaigns and collaborations with designers or influencers help to boost brand visibility and attract new customers.
Kirkland's Financial Statement Overview
Summary
Kirkland's financial position is weak, with declining revenues, persistent losses, and cash flow challenges. High debt levels and negative equity indicate solvency risks, while negative cash flows limit financial flexibility.Income Statement
Kirkland's has experienced declining revenues over the years, with a significant drop from 2022 to 2025. The gross profit margin has also decreased over time, indicating cost pressures or inefficiencies. The company has been consistently reporting negative EBIT and net income, highlighting ongoing operational challenges and lack of profitability. The revenue growth rate is negative, showing a declining sales trend.45
Neutral
Balance Sheet
The company shows a negative equity position in the recent year due to accumulated losses, which is a significant risk. The debt-to-equity ratio is not applicable due to negative equity, but high debt levels relative to assets indicate potential solvency issues. The declining total assets and negative stockholders' equity signal financial instability.40
Negative
Cash Flow
Kirkland's has consistently reported negative operating and free cash flows, indicating cash flow challenges. The free cash flow has not shown positive growth, impacting the company's ability to reinvest or reduce debt. The operating cash flow to net income ratio is negative, suggesting the company is not converting its earnings into cash effectively.35
Negative
| Breakdown | |||||
| TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 458.41M | 441.36M | 468.69M | 498.82M | 558.18M | 543.50M | Gross Profit |
| 85.54M | 122.01M | 126.99M | 119.79M | 188.43M | 172.38M | EBIT |
| -12.11M | -14.03M | -24.41M | -40.68M | 25.34M | 26.61M | EBITDA |
| -5.04M | -14.03M | -11.94M | -25.89M | 46.12M | 31.92M | Net Income Common Stockholders |
| -20.90M | -23.13M | -27.75M | -44.69M | 22.03M | 16.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 6.76M | 3.82M | 3.81M | 5.17M | 25.00M | 100.34M | Total Assets |
| 279.81M | 242.19M | 250.57M | 274.25M | 331.19M | 389.42M | Total Debt |
| 218.56M | 183.64M | 173.79M | 171.11M | 152.29M | 196.41M | Net Debt |
| 211.80M | 179.82M | 169.99M | 165.94M | 127.29M | 96.07M | Total Liabilities |
| 306.95M | 261.20M | 247.45M | 244.47M | 250.06M | 294.89M | Stockholders Equity |
| -27.13M | -19.02M | 3.12M | 29.77M | 81.13M | 94.53M |
| Cash Flow | Free Cash Flow | ||||
| -13.94M | -21.64M | -19.25M | -26.27M | -37.91M | 69.86M | Operating Cash Flow |
| -10.82M | -19.25M | -14.48M | -18.15M | -30.79M | 78.56M | Investing Cash Flow |
| -3.08M | -2.35M | -4.63M | -8.06M | -7.06M | -8.49M | Financing Cash Flow |
| 14.90M | 21.62M | 17.74M | 6.38M | -37.49M | 131.00K |
Kirkland's Technical Analysis
Negative
1.16
Price Trends
1.24
Negative
1.38
Negative
1.57
Negative
Market Momentum
-0.02
Positive
46.78
Neutral
39.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIRK, the sentiment is Negative. The current price of 1.16 is below the 20-day moving average (MA) of 1.23, below the 50-day MA of 1.24, and below the 200-day MA of 1.57, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 39.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KIRK.
Kirkland's Risk Analysis
Kirkland's disclosed 38 risk factors in its most recent earnings report. Kirkland's reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kirkland's Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $6.97B | 11.38 | 2.88% | 3.90% | 2.64% | -22.07% | |
54 Neutral | $24.45M | ― | 47.49% | ― | 2.68% | 43.98% | |
44 Neutral | $17.17M | ― | -179.00% | ― | -11.33% | -183.48% | |
43 Neutral | $26.05M | ― | 77.02% | ― | -5.83% | 18.04% | |
41 Neutral | $8.79M | ― | -67.84% | ― | -9.23% | -3.69% |
* Consumer Cyclical Sector Average
Performance Comparison
KIRK
Kirkland's
1.16
-0.72
-38.30%
RENT
Rent the Runway
6.14
-26.62
-81.26%
DTCB
Solo Brands
0.08
-1.97
-96.10%
LVLU
Lulu's Fashion Lounge Holdings
0.40
-1.37
-77.40%
Kirkland's Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q3-2024)
| % Change Since: -16.55%|
Next Earnings Date:Jun 05, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a positive shift in operational efficiency and strategic repositioning with improvements in gross profit margin, customer traffic, and inventory management. However, significant challenges remain with declining net sales and negative adjusted EBITDA. The sentiment is cautiously optimistic as the company executes its turnaround strategy.Q3-2024 Updates
Positive Updates
Improved Gross Profit Margin
Gross profit margin increased by 130 basis points to 26.3% compared to 25% in the previous year, driven by a 110 basis point increase in merchandise margin and decreased central distribution costs.
Sequential Improvement in Comparable Sales
Comparable sales improved from a decline of 13% in August to 6% in October, showing a monthly sequential improvement throughout the quarter.
Cost Reduction Success
Operating expenses were reduced by over $2 million compared to the prior year, reflecting effective cost containment strategies.
Increased Customer Engagement
A 20% increase in lapsed customer reactivations and a significant improvement in e-commerce traffic decline from negative 17% to negative 3%.
Inventory Management
Inventory levels decreased by 17% compared to the previous year, improving supply chain efficiency and positioning for the holiday season.
Negative Updates
Decline in Net Sales
Net sales decreased to $116.4 million from $131 million in the prior year quarter, with a 9.2% decline in comparable sales.
Continued Challenges in High-Ticket Categories
Inflation affected customer purchases in high-ticket categories like furniture and wall decor, although strategic shifts are being made to address this.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $3.2 million, compared to negative $1.7 million in the prior year, indicating ongoing operational challenges.
Interest Expense Increase
Net interest expense rose to $1.2 million from $0.7 million due to higher interest rates.
Company Guidance
During the third-quarter 2024 earnings call for Kirkland's, the company provided several key metrics and guidance updates. The call highlighted sequential improvements in traffic and comparable sales, with traffic declines improving from 14% in August to 4% in October, and comparable sales improving from a 13% decline in August to a 6% decline in October. Gross profit margin increased by 130 basis points to 26.3%, driven by a merchandise margin improvement of 110 basis points. Additionally, Kirkland's saw a 20% increase in lapsed customer reactivations and an 8% sales increase in the decorative accessories category. The company reported a 17% reduction in inventory levels compared to the previous year and reduced operating expenses by over $2 million. Looking ahead, Kirkland's expects a low single-digit increase in comparable sales and further improvements in merchandise margins in the fourth quarter.Kirkland's Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Kirkland’s Expands Partnership with Beyond, Inc.
Negative
May 12, 2025
On May 7, 2025, Kirkland’s, Inc. expanded its strategic partnership with Beyond, Inc., closing a $5.2 million credit agreement expansion to support its store conversion strategy and enhance financial flexibility. The agreement allows Beyond to convert debt into Kirkland’s stock and includes amendments to existing collaboration and investor rights agreements, aiming to leverage brand synergies and improve operational efficiencies. Despite receiving waivers for prior defaults, Kirkland’s management acknowledges ongoing material uncertainty regarding its ability to continue as a going concern.
The most recent analyst rating on (KIRK) stock is a Buy with a $7.0000 price target. To see the full list of analyst forecasts on Kirkland’s stock, see the KIRK Stock Forecast page.
Spark’s Take on KIRK Stock
According to Spark, TipRanks’ AI Analyst, KIRK is a Neutral.
Kirkland’s faces significant financial challenges, with declining revenues and negative cash flows, impacting its overall stock score negatively. The recent earnings call shows some operational improvements, but persistent issues with sales and profitability remain. While technical indicators suggest a neutral position, the valuation is weak due to unprofitability. The score reflects a need for substantial strategic changes to enhance financial health.
To see Spark’s full report on KIRK stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.