Kirkland's(KIRK) - 2024 Q4 - Annual Results

Financial Performance - Q4 2023 - Net sales for Q4 2023 were $165.9 million, with comparable sales increasing 1.7% on a 13-week basis[5][6] - Gross profit margin for Q4 2023 improved to 32.0%, up from 24.8% in the prior year quarter[5][7] - Operating income for Q4 2023 was $10.7 million, a $13.9 million improvement quarter-over-quarter[5][8] - Net income for Q4 2023 was $10.1 million, compared to a net loss of $3.8 million in the prior year quarter[9] Financial Performance - Fiscal Year 2023 - Fiscal year 2023 net sales were $468.7 million, with comparable sales decreasing 4.8% on a 52-week basis[5][11] - Gross profit margin for fiscal year 2023 improved to 27.1%, up from 24.0% in the prior year[5][12] - Operating loss for fiscal year 2023 was $24.4 million, an $18.3 million improvement year-over-year[5][13] - Net loss for fiscal year 2023 was $27.8 million, compared to a net loss of $44.7 million in the prior year[14] Cash and Debt Position - The company ended the year with a cash balance of $3.8 million and $34.0 million in outstanding debt[5][10] - Cash and cash equivalents decreased from $5.171 million in 2023 to $3.805 million in 2024, a decline of 26.4%[25] - Borrowings on revolving line of credit increased from $60.000 million in 2023 to $64.000 million in 2024, a rise of 6.7%[26] Store Operations - The company closed 16 stores and relocated one store, ending the year with 330 stores[5] Asset and Inventory Changes - Total assets decreased from $274.246 million in 2023 to $250.573 million in 2024, a decline of 8.6%[25] - Inventories, net decreased from $84.071 million in 2023 to $74.090 million in 2024, a reduction of 11.9%[25] Cash Flow and Operating Activities - Net cash used in operating activities improved from $(18.151) million in 2023 to $(14.476) million in 2024, a reduction of 20.2%[26] - Depreciation expenses decreased from $16.522 million in 2023 to $11.980 million in 2024, a reduction of 27.5%[26] Adjusted Financial Metrics - Adjusted EBITDA improved from $(21.312) million in 2023 to $(8.386) million in 2024, a significant improvement of 60.7%[33] - Adjusted operating income (loss) improved from $(37.834) million in 2023 to $(20.366) million in 2024, a significant improvement of 46.2%[33] Compensation and Expenses - Stock-based compensation expense decreased from $1.961 million in 2023 to $1.186 million in 2024, a reduction of 39.5%[26] Net Loss Improvement - Net loss improved from $(44.694) million in 2023 to $(27.751) million in 2024, a reduction of 37.9%[26]