Kirkland’s Inc (NASDAQ:KIRK) shares are trading higher after the company reported fourth-quarter FY23 results.

Revenue of $165.9 million, missing the consensus of $167.2 million. The net sales increase on year was primarily driven by $6.6 million of net sales for the 53rd week of fiscal 2023 and growth in same-store sales, partially offset by the impact of store closures. 

On a 13-week comparison, comparable same-store sales increased 1.7%, including an 8.3% decline in e-commerce sales on higher store traffic and conversion, partly offset by a decreased average ticket. 

Gross profit margin expanded to 32.0% from 24.8% a year ago on improved merchandise margin, favorable outbound freight costs, and favorable distribution center costs.

Adjusted EBITDA was $14.2 million vs. $2.6 million in the prior year quarter. EPS of $0.78 beat the analyst consensus of $0.42.

Net income in the fourth quarter was $10.1 million versus a loss of $(3.8) million in the prior year quarter.

As of March 21, 2024, Kirkland’s had $40.0 million of outstanding debt under its senior secured revolving credit facility and $5.0 million in borrowings under its “first-in, last-out” delayed-draw, asset-based term loan.

Amy Sullivan, CEO, said, “The fourth quarter marked our first full quarter of capitalizing on the strategic repositioning initiatives we’ve implemented, which generated positive comparable sales results, strong gross margins, and healthy operating cash flow. Although we remain in the early stages of our strategic repositioning, we are pleased with the results we were able to generate to close out the year.”

“Consumers remain highly price sensitive, and while we continue to see dampened demand for larger ticket items, the demand for seasonally relevant décor and accessories remains high, which is more than offsetting the lower average ticket trends we’re experiencing thus far.”

Price Action: KIRK shares are up 12.68% at $2.81 on the last check Thursday.