In a report released today, Jeff Van Sinderen from B.Riley FBR reiterated a Buy rating on Kirkland’s (NASDAQ: KIRK), with a price target of $15. The company’s shares opened today at $9.52.
Van Sinderen commented:
“KIRK reported 2Q results BMO on 8/30 with sales/comps/adjusted EPS below consensus. Sales were up 1.7% on a -3.9% comp that was impacted by challenging brick-and-mortar (B&M) traffic and conversion that resulted in decreased transactions, slightly offset by higher average ticket. Increased use of analytics enabled optimized couponing and more precise promo activity. Overall, higher IMU continued to benefit merchandise margin along with more disciplined promos supported by improved analytics. E-comm grew 14.5% Y/Y on top of 40% LY to just under ~13% penetration, driven by increased website traffic and higher average ticket. Drop ship increased to roughly one-fourth of e-comm vs. 15% in 2Q17. The fragrance and floral categories comped while wall and lamp underperformed.”
According to TipRanks.com, Sinderen is a 3-star analyst with an average return of 4.4% and a 50.3% success rate. Sinderen covers the Services sector, focusing on stocks such as Tuesday Morning, Tilly’s Inc, and Zumiez Inc.
Currently, the analyst consensus on Kirkland’s is a Moderate Buy with an average price target of $14.50.
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Based on Kirkland’s’ latest earnings release for the quarter ending July 31, the company reported a quarterly GAAP net loss of $6.72 million. 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.
