Kirkland's(US:KIRK)2025-06-17 11:29Financial Performance - Net sales for Q4 2024 were $148.9 million, a decrease from $165.9 million in the prior year quarter, primarily due to an extra week in the previous fiscal calendar and a 4% decline in store count[5]. - Comparable sales decreased by 0.6% in Q4 2024, with a 1.6% increase in comparable store sales and a 7.9% decline in e-commerce sales[7]. - Gross profit margin for Q4 2024 was 30.3%, down from 32.0% in the prior year quarter, attributed to lower merchandise margins and higher promotional activity[6]. - Operating income for Q4 2024 was $9.2 million, compared to $10.7 million in the prior year quarter[9]. - Fiscal Year 2024 net sales were $441.4 million, down from $468.7 million in the prior year, with comparable sales decreasing by 2.0%[13]. - Gross profit for FY 2024 was $122.0 million, or 27.6% of net sales, compared to $127.0 million or 27.1% in FY 2023[14]. - Operating loss for FY 2024 was $14.0 million, an improvement from a loss of $24.4 million in FY 2023[16]. - Net sales for the 13-week period ended February 1, 2025, were $148.9 million, a decrease of 10.3% compared to $165.9 million for the 14-week period ended February 3, 2024[31]. - Gross profit for the 52-week period ended February 1, 2025, was $122.0 million, down from $127.0 million for the 53-week period ended February 3, 2024, reflecting a gross margin of 27.7%[32]. - Operating loss for the 52-week period ended February 1, 2025, was $14.0 million, an improvement from a loss of $24.4 million in the previous year[32]. - Net loss for the 52-week period ended February 1, 2025, was $23.1 million, compared to a net loss of $27.8 million for the 53-week period ended February 3, 2024[32]. Cash and Debt Management - As of February 1, 2025, inventory was $81.9 million, a 10.5% increase compared to the prior year[18]. - The company had a cash balance of $3.8 million and $43.0 million of outstanding debt under its revolving credit facility as of February 1, 2025[19]. - The company is in discussions for an additional $5.0 million from Beyond for working capital purposes, including store conversions[21]. - Total current liabilities increased to $152.7 million as of February 1, 2025, compared to $109.2 million as of February 3, 2024[34]. - Cash and cash equivalents remained stable at $3.8 million as of February 1, 2025, compared to $3.8 million as of February 3, 2024[34]. - The company reported a net cash used in operating activities of $19.3 million for the 52-week period ended February 1, 2025, compared to $14.5 million for the previous year[35]. - The company recorded a total of $17.0 million in proceeds from the Beyond transaction, contributing to its financing activities[35]. Earnings and Adjustments - For the 13-week period ended February 1, 2025, the net income was $7,882,000, a decrease from $10,117,000 in the 14-week period ended February 3, 2024[40]. - Adjusted EBITDA for the 13-week period ended February 1, 2025, was $11,986,000, compared to $14,185,000 for the 14-week period ended February 3, 2024, reflecting a decline of approximately 15%[40]. - The operating income for the 13-week period ended February 1, 2025, was $9,190,000, down from $10,665,000 in the previous year, indicating a decrease of about 14%[41]. - Total adjustments to net income for the 52-week period ended February 1, 2025, amounted to $5,362,000, significantly impacting the adjusted net income which was $(17,772,000)[41]. - The diluted earnings per share for the 13-week period ended February 1, 2025, was $0.51, compared to $0.78 for the 14-week period ended February 3, 2024, representing a decline of approximately 35%[41]. - The company reported a total of 15,784,000 diluted weighted average shares outstanding for the 13-week period ended February 1, 2025, an increase from 13,025,000 shares in the previous year[41]. - Adjusted operating income for the 13-week period ended February 1, 2025, was $9,717,000, down from $11,323,000 in the prior year, reflecting a decrease of about 14%[41]. - The company incurred severance charges of $58,000 for the 13-week period ended February 1, 2025, compared to $38,000 in the previous year[41]. - Asset impairment charges for the 52-week period ended February 1, 2025, totaled $109,000, down from $1,867,000 in the previous year[42]. - Stock-based compensation expense for the 13-week period ended February 1, 2025, was $233,000, compared to $295,000 for the 14-week period ended February 3, 2024[41]. Risks and Challenges - The company continues to face risks related to inflation, supply chain disruptions, and competitive pressures in the home décor industry, which may impact future performance[30].