Kirkland's Inc. shares soared Thursday after the home decor retailer reported a better-than-expected fiscal third quarter and raised its full-year forecast.
Kirkland's President and CEO Robert Alderson said that fall and holiday seasonal merchandise sold well during the quarter. The company also benefited from increased traffic in stores, strong product margins and more spent by shoppers for each purchase.
The retailer operates 324 stores in 35 states.
The Nashville, Tenn., company said that it earned $1 million, or 6 cents per share, for the quarter that ended Nov. 2. That is compared with a loss of $416,000, or 2 cents per share, last year. Revenue increased 10 percent to $106.1 million.
Analysts polled by FactSet were anticipating earnings of 2 cents per share on revenue of $104 million.
Kirkland expects to earn 90 cents to 95 cents per share for the year, up from its prior forecast of 80 cents to 90 cents per share. It antici pates revenue between $464 million to $467 million. Analysts expected earnings of 91 cents per share on revenue of $466.6 million.
Shares jumped 65 cents, or 2.8 percent, to $23.50 in afternoon trading. Its stock hit $25.96 in earlier in the day, a new trading high for the company.