Kirkland's (NASDAQ: KIRK) reported Q2 EPS of $0.02, versus ($0.99) reported last year. Revenue for the quarter came in at $124.72 million versus the consensus estimate of $110.97 million.

Comparable sales increase of 10.2%, including e-commerce growth of 77.1%, while gross profit margin improves 640 basis points to 28.6% of net sales on the strength of continued execution of merchandising strategy, omni-channel growth and infrastructure improvements Second Quarter 2020

Financial Highlights:

• Net sales increased 4.0% to $124.7 million in the quarter, with 44 fewer stores; comparable sales increased 10.2%, including e-commerce growth of 77.1%
• Gross profit improved to 28.6% of net sales compared with 22.2% of net sales in the prior year quarter, or an increase of $9.1 million
• Operating expenses (excluding impairment) were reduced to 28.4% of net sales compared with 38.0% in the prior year quarter, or a reduction of $10.2 million
• Asset impairment from closing underperforming stores and the effect of discrete items on the tax rate impacted earnings by $9.1 million, or approximately $0.62 per diluted share
• Loss per diluted share narrowed to $0.66 compared with $1.21 in the prior-year quarter
• Adjusted income per diluted share increased to $0.02 compared with an adjusted loss per diluted share of $0.99 in the prior-year quarter
• Adjusted EBITDA improved to $6.8 million compared with an adjusted loss of $10.7 million in the prior-year quarter, or an improvement of $17.4 million
• Cash balance of $27.6 million with no outstanding debt; total liquidity of $78.9 million
• Store count at quarter end was 387 stores, with 18 additional stores closed in the quarter

"Positive trends and our dramatically improved business model enabled us to reach second quarter profitability on an adjusted basis for the first time in a decade. The hard work we have put in over the last several quarters continues to pay off with our elevated merchandise assortment and increased brand awareness driving the positive sales and margin trends through the quarter. With the accelerated infrastructure improvements, continued margin expansion and a commitment to maintaining a much leaner cost structure, we are experiencing tremendous leverage in the business. Reaching profitability on an adjusted basis during this period and driving the margin improvement and comparable sales to the extent we have is a significant and well-earned accomplishment," noted Woody Woodward, Chief Executive Officer.

"Our business is experiencing tailwinds from the favorable dynamics within the home segment and fewer store-based competitors than a year ago, but we are also seeing momentum created by our own merchandising, brand, omni-channel, infrastructure and cost reduction initiatives. We are far from finished on our journey to build Kirkland's into a stronger brand with a clear design point of view at an attainable price point, and we are focused on continuing to make the right decisions for the long-term benefit of Kirkland's and our shareholders."

For earnings history and earnings-related data on Kirkland's (KIRK) click here.