Kirkland's, Inc. announced its financial results for the third quarter ended November 2, 2024, reporting net sales of $114.4 million, a decrease from $116.4 million in the prior year quarter. Comparable sales declined by 3.0%, driven by a 14.9% decrease in e-commerce sales, partially offset by a 1.6% increase in comparable store sales.
The company reported a gross profit of $32.1 million, or 28.1% of net sales, an improvement from 26.3% in the prior year, primarily due to lower distribution center and outbound freight costs. Operating loss improved to $2.4 million from $6.7 million in the prior year, and adjusted EBITDA returned to a positive $0.5 million, compared to a loss of $3.2 million in the prior year quarter.
Net loss for the quarter was $7.7 million, or $0.59 per diluted share, compared to a net loss of $6.4 million, or $0.50 per diluted share, in the prior year. As of November 2, 2024, inventory stood at $111.2 million, and the company had $6.8 million in cash, with $65.0 million of outstanding debt under its revolving credit facility and $15.4 million in debt to Beyond, Inc.
Management highlighted the strategic partnership with Beyond, Inc., entered into on October 21, 2024, which included a $25 million investment. Proceeds from the $17 million Beyond Credit Agreement were used to repay an existing term loan and reduce revolving credit borrowings, with the remaining $8 million equity purchase and mandatory debt conversion subject to shareholder approval on December 23, 2024.
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