Kirkland’s shares fall premarket after company swings to Q1 loss and all metrics fall short of estimates

Shares of home decor and furniture retailer Kirkland’s Inc. KIRK, +2.26% fell 1.2% premarket Tuesday, after the company’s first-quarter earnings fell short on every metric as it battled inflationary pressure, rising interest rates, supply-chain issues and higher freight and transportation costs. Nashville, Tenn.-based Kirkland’s swung to a loss of $7.9 million, or 63 cents a share, for the quarter to April 30, after earnings of $1.7 million, or 11 cents a share, in the year-earlier period. The company’s adjusted per-share loss came to 62 cents, far wider than the 26 cent loss FactSet consensus. Sales fell to $103.3 million from $123.6 million a year ago, also below the $108.0 million FactSet consensus. Same-store sales were down 15.8%, compared with a FactSet consensus for a decline of just 13.4%. “Our first quarter 2022 results reflect continued macroeconomic headwinds hampering consumer demand for home décor and furnishings, ” said Steve “Woody” Woodward, president and CEO of Kirkland’s Home. “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. 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.” But the company said it’s suspending its timelines and targets as it expects the challenging near-term outlook for consumer spending will continue to weigh. Shares have fallen 55% in the year to date, while the S&P 500 SPX, +2.47% has fallen 13%.

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