Kirkland’s Inc. (KIRK), tapping the rapidly expanding mobile user market, recently introduced a mobile website that claims to make mobile shopping more convenient and smarter for its online visitors.
The new website, developed by the specialty home decor and furniture retailer, will provide customers visiting the company website from their smartphones the same desktop-like experience. Add how much traffic comes from mobile users
The mobile site offers popular features including product categories, store locator, styled photography as well as social sharing.
Kirkland’s has a strong e-commerce business. The company plans to expand its e-commerce business and redesign and leverage the rollout of new information systems to improve merchandise buying and planning execution online.
The new initiative to attract mobile phone shoppers is expected to boost sales in the coming quarter and eventually, this may boost earnings.
Based on the second quarter fiscal 2012 results, the company lowered its guidance for fiscal 2012. Management now expects earnings per share for fiscal 2012 between 72 cents and 82centsdown from the previously announced guidance range of 87 cents to 97 cents. Kirkland's expects to open approximately 40 to 44 new stores in fiscal 2012 and close 30 stores, representing square footage growth of 9%.
Kirkland’s expects fiscal 2012 total sales growth in the range of 4% to 6% over fiscal 2011, compared with the previous guidance of 7% to 9% growth.
For the third quarter of fiscal 2012, the company expects a net loss in the range of 3 cents to 7 cents per diluted share. Net sales are expected to be $97 million to $99 million. Kirkland's expects to open approximately 14 to 16 new stores and close 4 stores during the quarter.
The Zacks Consensus Estimate is pegged at earnings of 76 cents for the fiscal year 2012 and a loss of 5 cents for the third quarter.
Kirkland’s competitors include The TJX Companies Inc. (TJX) and Ross Stores Inc. (ROST). Currently, we have a long-term Underperform recommendation on Kirkland’s, which carries a Zacks #4 Rank (short term Sell rating)
Based in Nashville, Tennessee, Kirkland’s operates as a specialty retailer of home décor and gifts in the United States.
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