Kirkland's posts smaller-than-expected 2Q loss

Kirkland's posts smaller-than-expected 2Q loss, raises 2013 earnings forecast

Associated Press

NASHVILLE, Tenn. (AP) -- Kirkland's posted a smaller-than-expected second-quarter loss on Thursday, as the home decor company offered fewer discounted items, boosting its profit margins.

The retailer also lifted its full-year earnings forecast.

The stock jumped 8 percent in afternoon trading.

For the period ended Aug. 3, Kirkland's lost $577,000, or 3 cents per share. That compares with a loss of $2 million, or 11 cents per share, a year ago.

Analysts expected a loss of 10 cents per share, according to a FactSet survey.

Shares climbed $1.34 to $18.05. The stock has traded in a 52-week range of $8.26 to $19.61.

Revenue rose 7 percent to $97.1 million from $91 million. Wall Street forecast slightly higher revenue of $97.8 million.

Revenue at stores open at least a year edged down 0.2 percent. But this was a smaller decline than the 3.6 percent drop reported in the prior-year period. Kirkland's Inc. said that the figure includes online sales.

This metric is a key indicator of a retailer's results because it excludes results from stores recently opened or closed.

Kirkland's now anticipates fiscal 2013 earnings between 80 cents and 90 cents per share, with revenue up about 3 percent to 4 percent. Its prior outlook was for earnings of 75 cents to 85 cents per share with revenue rising approximately 3 percent to 5 percent.

Analysts expect full-year earnings of 85 cents per share.

For the third quarter, the company anticipates earnings will be breakeven to 3 cents per share. Revenue is forecast in a range of $103 million to $105 million. Wall Street is calling for earnings of 1 cent per share on revenue of $104.9 million.

Kirkland's currently runs 317 stores in 35 states.

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