Kirkland's Inc. has reported first quarter gross profit of $28.3 million, compared to $40.3 million for the same period in the prior year.
According to a release, net sales for the quarter were $103.3 million, with comparable sales decreasing 15.8 percent. The percentage of net sales related to gross profit dipped to 27.4 percent from 32.6 percent.
The Brentwood-based home décor and furnishings retailer totaled adjusted EBITDA of a loss of $5.8 million and ended the period with a cash balance of $5.4 million, $35.0 million in outstanding debt and total liquidity of $45.4 million.
For the period, Kirkland’s repurchased $6.3 million worth of shares, or 3.8 percent of the company's outstanding shares.
The company closed one store to end the quarter with 360 locations.
"Our first quarter 2022 results reflect continued macroeconomic headwinds hampering consumer demand for home décor and furnishings," Woody Woodward, president and CEO of Kirkland's Home, said in the release. "We were impacted by the shift in consumer spending stemming from rising interest rates, inflationary pressures and geopolitical conflicts that adversely affected our customer traffic and sales.
“We also continued to deal with constraints across the supply chain, particularly heightened freight and transportation costs, which pressured our margins,” he added. “While we are disappointed with our results, we are still executing upon our long-term transformation strategy and making progress in areas that are within our control.”
Shares of Kirkland's (Ticker: KIRK) started the trading week at $5.80 and ended Thursday's session at $4.93, down 1.6 percent after having started the day at $5.00.