Kirkland's announced financial results for the fourth quarter ended February 3, 2024.
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Summary
Net sales were $165.9 million, with comparable sales on a 13-week comparison increasing 1.7%
Gross profit margin of 32.0%.
Operating income of $10.7 million, a $13.9 million improvement quarter-over-quarter.
Operating cash flow of $28.2 million.
Adjusted EBITDA of $14.2 million.
Closed 9 stores during the period.
Ended the year with a cash balance of $3.8 million and $34.0 million in outstanding debt.
Net sales in the fourth quarter of 2023 (14 weeks) were $165.9 million, compared to $162.5 million in the prior year quarter (13 weeks).
The net sales increase was primarily driven by $6.6 million of net sales for the 53rd week of fiscal 2023 and growth in same-store sales, partially offset by the impact of store closures.
On a 13-week comparison, comparable same store sales increased 1.7%, including a 8.3% decline in e-commerce sales. The increase was primarily driven by an increase in store traffic and conversion, partially offset by a decrease in average ticket.
Gross profit in the fourth quarter of 2023 was $53.0 million, or 32.0% of net sales, compared to $40.3 million, or 24.8% of net sales in the prior year quarter.
The improvement as a percentage of net sales was primarily a result of improved merchandise margin, favorable outbound freight costs and favorable distribution center costs.
Operating income in the fourth quarter of 2023 was $10.7 million compared to operating loss of $3.2 million in the prior year quarter.
The increase was primarily a result of the aforementioned increase in gross profit and lower operating costs.
EBITDA in the fourth quarter of 2023 was $13.9 million compared to $2.0 million in the prior year quarter. Adjusted EBITDA in the fourth quarter of 2023 was $14.2 million compared to $2.6 million in the prior year quarter.
Net income in the fourth quarter of 2023 was $10.1 million, or earnings of $0.78 per diluted share, compared to a loss of $3.8 million, or a loss of $0.30 per diluted share in the prior year quarter.
At February 3, 2024, the Company had a cash balance of $3.8 million, with $34.0 million of outstanding debt under its $90.0 million senior secured revolving credit facility and no borrowings under its $12.0 million "first-in, last-out" delayed-draw, asset-based term loan.
As of March 21, 2024, the Company had $40.0 million of outstanding debt under its senior secured revolving credit facility and $5.0 million in borrowings under its "first-in, last-out" delayed-draw, asset-based term loan. ■