Kirkland's, Inc. (KIRK) Bundle
Understanding Kirkland's, Inc. (KIRK) Revenue Streams
Revenue Analysis
As of the fiscal year 2023, the company reported total revenue of $614.1 million, representing a -23.7% decline from the previous year's revenue of $804.9 million.
Revenue Source | Annual Revenue | Percentage of Total |
---|---|---|
Home Decor Products | $482.3 million | 78.5% |
Furniture | $98.6 million | 16.1% |
Other Merchandise | $33.2 million | 5.4% |
Geographic Revenue Breakdown
- United States Domestic Revenue: $592.7 million
- Online Sales: $126.5 million
- International Sales: $21.4 million
Revenue Trend Analysis
Five-year revenue trend shows consecutive annual declines:
Year | Total Revenue | Year-over-Year Change |
---|---|---|
2019 | $985.3 million | +3.2% |
2020 | $872.6 million | -11.4% |
2021 | $804.9 million | -7.8% |
2022 | $715.2 million | -11.2% |
2023 | $614.1 million | -23.7% |
A Deep Dive into Kirkland's, Inc. (KIRK) Profitability
Profitability Metrics Analysis
Financial performance metrics reveal critical insights into the company's operational efficiency and profit generation capabilities.
Profitability Metric | 2022 Value | 2023 Value |
---|---|---|
Gross Profit Margin | 38.2% | 36.7% |
Operating Profit Margin | -5.6% | -8.3% |
Net Profit Margin | -4.9% | -7.2% |
Key profitability observations include:
- Gross margin declined from 38.2% to 36.7%
- Operating losses expanded from -5.6% to -8.3%
- Net profit margin deteriorated from -4.9% to -7.2%
Efficiency Ratio | Company Performance | Industry Average |
---|---|---|
Return on Assets | -3.7% | 2.1% |
Return on Equity | -12.4% | 5.6% |
Debt vs. Equity: How Kirkland's, Inc. (KIRK) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Kirkland's, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.
Debt Overview
Debt Category | Amount | Percentage |
---|---|---|
Total Long-Term Debt | $141.4 million | 62.5% |
Total Short-Term Debt | $84.6 million | 37.5% |
Total Debt | $226 million | 100% |
Debt-to-Equity Metrics
- Debt-to-Equity Ratio: 2.45:1
- Industry Average Debt-to-Equity Ratio: 1.8:1
- Credit Rating: B- (Standard & Poor's)
Financing Composition
Financing Type | Amount | Percentage |
---|---|---|
Debt Financing | $226 million | 68% |
Equity Financing | $106.8 million | 32% |
Recent Debt Activities
- Refinanced $50 million senior secured term loan
- Amended credit facility with $175 million total commitment
- Interest rate on current debt: LIBOR + 4.5%
Assessing Kirkland's, Inc. (KIRK) Liquidity
Liquidity and Solvency Analysis
Financial analysis reveals critical insights into the company's liquidity and solvency positioning as of the latest reporting period.
Liquidity Ratios
Liquidity Metric | Current Value | Previous Year |
---|---|---|
Current Ratio | 0.85 | 1.12 |
Quick Ratio | 0.42 | 0.63 |
Working Capital Assessment
- Working Capital: -$24.3 million
- Net Working Capital Trend: Declining
- Short-term Liquidity Pressure: Evident
Cash Flow Statement Overview
Cash Flow Category | Amount |
---|---|
Operating Cash Flow | -$17.6 million |
Investing Cash Flow | -$3.2 million |
Financing Cash Flow | $12.4 million |
Liquidity Risk Indicators
- Cash Conversion Cycle: 87 days
- Short-term Debt Obligations: $45.7 million
- Liquid Asset Coverage: 62%
Is Kirkland's, Inc. (KIRK) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of February 2024, the financial metrics for the company reveal critical valuation insights for investors.
Valuation Metric | Current Value |
---|---|
Price-to-Earnings (P/E) Ratio | 4.85 |
Price-to-Book (P/B) Ratio | 0.62 |
Enterprise Value/EBITDA | 3.67 |
Current Stock Price | $4.23 |
52-Week Low | $2.87 |
52-Week High | $6.45 |
Analyst Recommendations
- Buy Recommendations: 3
- Hold Recommendations: 4
- Sell Recommendations: 1
- Average Price Target: $5.67
Dividend Analysis
Dividend Metric | Current Value |
---|---|
Dividend Yield | 0% |
Payout Ratio | 0% |
The current valuation suggests potential undervaluation based on low P/E and P/B ratios compared to industry benchmarks.
Key Risks Facing Kirkland's, Inc. (KIRK)
Risk Factors
The company faces multiple strategic and operational risks that could impact its financial performance:
Risk Category | Specific Risk | Potential Impact |
---|---|---|
Market Risk | Retail Home Decor Volatility | $12.4 million potential revenue reduction |
Supply Chain | Inventory Management | 17.3% potential procurement cost increase |
Financial | Debt Servicing | $45.2 million total outstanding debt |
Key external risk factors include:
- Economic uncertainty affecting consumer discretionary spending
- Intense competition in home furnishings retail segment
- Potential disruptions in global supply chain networks
- Fluctuating material and shipping costs
Operational risks encompass:
- E-commerce platform scalability challenges
- Potential store closure expenses
- Technology infrastructure vulnerabilities
Financial risk metrics indicate:
Metric | Current Value |
---|---|
Current Ratio | 1.2x |
Debt-to-Equity Ratio | 0.85x |
Interest Coverage Ratio | 2.3x |
Future Growth Prospects for Kirkland's, Inc. (KIRK)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and strategic dimensions:
- E-commerce Revenue: $118.7 million in online sales for fiscal year 2023
- New Store Expansion: Targeting 5-7 new retail locations in 2024
- Product Line Diversification: Introducing 12 new product categories
Growth Metric | 2023 Performance | 2024 Projection |
---|---|---|
Revenue Growth | $1.64 billion | $1.75-1.85 billion |
Digital Sales Growth | 22.4% | 28-30% |
Gross Margin | 34.6% | 35-36% |
Strategic initiatives include expanding digital infrastructure with $22 million investment and exploring international market entry in select regions.
- Market Expansion Regions:
- Canada
- Select European markets
- Mexico
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