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Kirkland's (Kirkland's) Operating Income : $-22.5 Mil (TTM As of Jan. 2024)


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What is Kirkland's Operating Income?

Kirkland's's Operating Income for the three months ended in Jan. 2024 was $11.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was $-22.5 Mil.

Warning Sign:

Kirkland's Inc had lost money in 58% of the time over the past 12quarters.

Operating Margin % is calculated as Operating Income divided by its Revenue. Kirkland's's Operating Income for the three months ended in Jan. 2024 was $11.0 Mil. Kirkland's's Revenue for the three months ended in Jan. 2024 was $165.9 Mil. Therefore, Kirkland's's Operating Margin % for the quarter that ended in Jan. 2024 was 6.62%.

Kirkland's's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kirkland's's annualized ROC % for the quarter that ended in Jan. 2024 was 20.75%. Kirkland's's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was 23.84%.


Kirkland's Operating Income Historical Data

The historical data trend for Kirkland's's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kirkland's Operating Income Chart

Kirkland's Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only -33.81 17.67 26.10 -40.68 -22.55

Kirkland's Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.57 -10.11 -17.09 -6.34 10.99

Kirkland's Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $-22.5 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Kirkland's  (NAS:KIRK) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Kirkland's's annualized ROC % for the quarter that ended in Jan. 2024 is calculated as:

ROC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=43.96 * ( 1 - -2.03% )/( (208.975 + 223.319)/ 2 )
=44.852388/216.147
=20.75 %

where

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Kirkland's's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2023  Q: Jan. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=43.272/( ( (162.161 + max(31.84, 0)) + (156.43 + max(12.531, 0)) )/ 2 )
=43.272/( ( 194.001 + 168.961 )/ 2 )
=43.272/181.481
=23.84 %

where Working Capital is:

Working Capital(Q: Oct. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 105.19 + 5.863) - (79.213 + 0 + 0)
=31.84

Working Capital(Q: Jan. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 74.09 + 7.614) - (50.936 + 14.17 + 4.067)
=12.531

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Kirkland's's Operating Margin % for the quarter that ended in Jan. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2024 )/Revenue (Q: Jan. 2024 )
=10.99/165.946
=6.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Kirkland's Operating Income Related Terms

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Kirkland's (Kirkland's) Business Description

Traded in Other Exchanges
N/A
Address
5310 Maryland Way, Brentwood, TN, USA, 37027
Kirkland's Inc is a specialty retailer of home decor and gifts in the United States. Its stores provide various merchandise, including holiday decor, framed arts, furniture, ornamental wall decor, fragrance and accessories, mirrors, lamps, decorative accessories, textiles, housewares, gifts, artificial floral products, frames, clocks, and outdoor living items. Its stores also offer an assortment of holiday merchandise in seasonal periods, as well as items that are suitable for gift-giving.
Executives
W Michael Madden director, officer: President and CEO C/O KIRKLAND'S INC, 431 SMITH LANE, JACKSON TN 38301
Amy Ervin Sullivan officer: SVP, CMO 5310 MARYLAND WAY, BRENTWOOD TN 37027
Ann E Joyce director C/O AEROPOSTALE INC, 1372 BRAODWAY 8TH FLOOR, NEW YORK NY 10018
Osmium Partners, Llc 10 percent owner 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Osmium Diamond, Lp 10 percent owner C/O OSMIUM PARTNERS, LLC, 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Osmium Capital Lp 10 percent owner 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Osmium Spartan L P 10 percent owner 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
John Hartnett Lewis 10 percent owner 388 MARKET STREET, SUITE 920, SAN FRANCISCO CA 94111
Osmium Capital Ii, Lp 10 percent owner 300 DRAKES LANDING ROAD, SUITE 172, GREENBRAE CA 94904
Jill A. Soltau director 123 SOUTH FRONT STREET, MEMPHIS TN 38103
Nicole Allyson Strain officer: Interim CFO 5310 MARYLAND WAY, BRENTWOOD TN 37027
Charles Iii Pleas director 123 S. FRONT STREET, DEPT. 8074, MEMPHIS TN 38103
Michael A. Holland officer: Sr. VP and CTO 5310 MARYLAND WAY, BRENTWOOD TN 37027
Miles Kirkland director C/O KIRKLAND'S, INC., 2501 MCGAVOCK PIKE, SUITE 1000, NASHVILLE TN 37214
Orr Wilson R Iii director C/O KIRKLAND'S, INC., 2501 MCGAVOCK PIKE, SUITE 1000, NASHVILLE TN 37214