Shares of Kirkland’s rallied nearly 10 percent Friday after the home goods retailer’s executives previewed better-than-expected fourth-quarter results and said their January sales were up more than 15 percent from the mark of a year ago.
In his team’s Q4 pre-announcement, CEO Woody Woodward said COVID-19’s December resurgence led to weaker store traffic but that the company’s e-commerce operation more than offset that decline by climbing about 35 percent. (Online sales popped a whopping 60 percent in January.) Total sales are expected to come in at $195 million, down 7 percent from the prior-year period when Brentwood-based Kirkland’s ran 59 more stores.
Woodward and his team are forecasting Q4 diluted earnings per share to come in between $1.30 and $1.40, the highest quarterly number in the company’s history. A year ago, the company lost 35 cents per diluted share.
“These record earnings results reflect the appeal of our merchandise assortments with customers and the earnings leverage in the business from our cost and infrastructure changes,” Woodward said. “With cash expected to be approximately $100 million and total liquidity of $140 million, we are well positioned to fund our continued growth and deploy capital strategically.”
At about noon, shares of Kirkland’s (Ticker: KIRK) were changing hands at $26.57, up more than 9 percent from their Thursday close figure. They have since last spring steadily rallied from below $1 and a month ago peaked near $30.