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Kirkland's Inc. (KIRK+1.32%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports a net sales decrease to $114.4 million for the third quarter, down from $116.4 million in the same quarter of the previous year. Comparable sales decreased by 3.0%, driven by a decline in e-commerce sales.
Gross profit as a percentage of net sales increased to 28.1% from 26.3% in the previous year, attributed to lower distribution and outbound freight costs.
Operating expenses decreased to $34.5 million from $37.3 million, primarily due to reduced advertising costs.
The company reported a net loss of $7.7 million for the quarter, compared to a net loss of $6.4 million in the previous year. Loss per share was $0.59, compared to $0.50 in the previous year.
Kirkland's entered into a strategic partnership with Beyond, Inc., involving a $17 million term loan to repay existing debt and reduce borrowings under its revolving credit facility.
The company continues to face challenging macroeconomic conditions, including inflationary pressures and reduced consumer spending, impacting its financial performance.
Kirkland's plans to improve its liquidity and operating results through cost reductions and additional financing, including a potential $8 million equity purchase subject to shareholder approval.
The filing also details legal proceedings, including class action lawsuits in California and New York, and outlines the company's stock-based compensation and share repurchase plan.
Kirkland's reported total liabilities of $306.9 million and shareholders' deficit of $27.1 million as of November 2, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kirkland's Inc. quarterly 10-Q report dated December 6, 2024. To report an error, please email earnings@qz.com.