On March 16, home decor retailer Kirkland's
- Sales grew 9.2% due to an extra week in the fourth quarter compared with the same quarter the previous year. Same-store sales decreased 6.1% for the quarter.
- The company reported a $3.6 million benefit in gift card breakage (gift cards purchased but not redeemed) and $1.4 million in costs for discount certificate breakage.
- Management opened 13 stores and closed 20 stores during the quarter. It expects to open 40 off-mall stores and close 40 stores, mainly in-mall, in 2007.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales* |
$167.5 |
$153.4 |
9.2% |
|
Net Profit |
$11.4 |
$10.1 |
13.3% |
|
EPS |
$0.58 |
$0.51 |
13.7% |
|
Diluted Shares |
19.6 |
19.6 |
0.3% |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin** |
37.7% |
34.9% |
2.8 |
|
Operating Margin** |
10.7% |
10.8% |
(0.1) |
|
Net Margin |
6.8% |
6.6% |
0.3 |
**Does not include breakage
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$25.4 |
$15.0 |
69.4% |
|
Inventory |
$44.8 |
$49.2 |
(8.9%) |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$20.6 |
$24.2 |
(15.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
The company did not issue a cash flow statement in its earnings release.
Free cash flow is a Fool's best friend.
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