Profile: Kirklands Inc (KIRK.O)

Kirkland’s, Inc. is a specialty retailer of home decor in the United States. As of January 31, 2009, the Company operated 299 stores in 34 states. The Company’s stores present a selection of merchandise, including framed art, mirrors, wall decor, candles, lamps, decorative accessories, accent furniture, textiles, garden accessories and artificial floral products. Its stores also offer an assortment of holiday merchandise, as well as items carried throughout the year suitable for giving as gifts.

The Company’s average store generally carries approximately 2,600 to 2,800 stock keeping units (SKUs). It purchases merchandise from approximately 279 vendors. Approximately 80% of its total purchases are from importers of merchandise manufactured primarily in the Far East and India, with the balance purchased from domestic manufacturers and wholesalers. Decorative accessories consist of such varied products as vases and clocks. Other merchandise includes house wares, picture frames and miscellaneous items.

The Company operates stores in both mall and off-mall venues. As of January 31, 2009, it operated 91 stores in enclosed malls and 208 stores in a variety of off-mall venues, including lifestyle strip centers, power strip centers, outlet centers and freestanding locations. Off-mall stores tend to be larger than mall stores. The average size of its mall stores is approximately 4,700 square feet, and the average size of its off-mall stores is approximately 6,300 square feet. During the fiscal year ended January 31, 2009 (fiscal 2008), the average size of the new stores opened by the Company was approximately 7,700 square feet. Its stores generally operate seven days a week.

Kirkland’s, Inc. competes with Bed, Bath & Beyond, Cost Plus World Market, Michael’s Stores, Pier 1 Imports and Williams-Sonoma.