B.Riley FBR analyst Jeff Van Sinderen maintained a Buy rating on Kirkland’s (NASDAQ: KIRK) today and set a price target of $15. The company’s shares opened today at $12.10.
Van Sinderen noted:
“Kirkland’s (KIRK) reports 2Q results BMO 8/30. Simply stated, our checks suggest that 2Q was challenging. Our sense is that, although the company maintained margin discipline with controlled discounting/promos, the assortment (prior regime’s) was overly dependent on core categories and lacked seasonal newness needed to drive comps. We note that the new interim CEO took the reins too late to influence the assortment and, unlike 1Q, 2Q (seasonally smallest Q of the FY) was not up against an easy Y/Y comp. The company will be better prepared for 2Q next year with newly assigned buyers and a trend expert in place. Improvements that are in place for 3Q fall/harvest and 4Q holiday were not implemented for 2Q this year. An earlier start of the fall/harvest seasonal assortment should benefit 3Q.”
According to TipRanks.com, Sinderen is a 3-star analyst with an average return of 4.2% and a 52.1% success rate. Sinderen covers the Services sector, focusing on stocks such as Tuesday Morning, Tilly’s Inc, and Zumiez Inc.
Kirkland’s has an analyst consensus of Moderate Buy, with a price target consensus of $14.50.
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Based on Kirkland’s’ latest earnings release for the quarter ending April 30, the company reported a quarterly GAAP net loss of $882K. In comparison, last year the company had a GAAP net loss of $3.77 million.
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Kirkland’s, Inc. is a retailer of home decor and gifts in the United States. Its stores present a selection of merchandise, including framed art, mirrors, wall decor, candles and related items, lamps, decorative accessories, accent furniture, textiles, garden-related accessories and artificial floral products.
