EX-99.1

NASHVILLE, Tenn. (November 19, 2015) — Kirkland’s, Inc. (NASDAQ: KIRK) today reported financial results for the 13-week and 39-week periods ended October 31, 2015.

Net sales for the 13 weeks ended October 31, 2015, increased 10.3% to $129.2 million compared with $117.2 million for the 13 weeks ended November 1, 2014. Comparable store sales for the third quarter of fiscal 2015, including e-commerce sales, increased 1.8% compared with a comparable store sales increase of 6.3% in the prior-year quarter. Kirkland’s opened 21 stores and closed two during the third quarter of 2015, bringing the total number of stores to 370 at quarter end.

Net sales for the 39 weeks ended October 31, 2015, increased 10.3% to $362.8 million compared with $328.9 million for the 39 weeks ended November 1, 2014. Comparable store sales, including e-commerce sales, increased 3.7% for the 39 weeks ended October 31, 2015 compared with an increase of 5.0% in the prior-year period. Kirkland’s opened 31 stores and closed five during the 39-week period.

For the 13 weeks ended October 31, 2015, the Company reported a net loss of $0.3 million, or ($0.02) per diluted share. The loss includes a tax benefit of $0.02 per diluted share relating to state employment and investment credits. The Company reported net income of $1.3 million, or $0.07 per diluted share, for the 13 weeks ended November 1, 2014.

For the 39 weeks ended October 31, 2015, the Company reported a net loss of $0.03 million, or ($0.00) per diluted share, compared with net income of $2.3 million, or $0.13 per diluted share, for the 39 weeks ended November 1, 2014. Adjusted net income for the 39 weeks ended October 31, 2015 was $0.3 million, or $0.02 per diluted share. Adjusted net income for the 39 weeks ended October 31, 2015 excludes a $0.02 per diluted share charge in the first quarter of 2015 related to the retirement of the Company’s previous CEO.

Mike Madden, Kirkland’s President and Chief Executive Officer, said, “While our fall seasonal merchandise performed well and e-commerce revenues exceeded our expectations, we were disappointed with our third quarter results. Comparable sales were impacted by soft traffic including weakness in Texas, where we have our highest concentration of stores. Merchandise margins were lower due primarily to an increase in promotional activity to stimulate traffic and manage inventory levels, as well as higher supply chain costs.”

Mr. Madden continued, “Our revised guidance assumes traffic challenges persist. Yet the bulk of the holiday selling season is ahead of us and we believe we have a strong and engaging holiday assortment as evidenced by our continued strength in conversion. We’re also encouraged by the performance of our 2015 class of stores and will enter Thanksgiving with 11% more stores open versus last year.”


Earnings:		Based on the Company’s sales and earnings performance to date in fiscal 2015, the Company now expects adjusted fiscal 2015 earnings per diluted share to be in the range of $0.89 to $0.96, excluding a $0.02 per diluted share charge related to the retirement of the Company’s previous CEO. This full year guidance implies an earnings expectation in the range of $0.88 to $0.95 per diluted share for the 13 weeks ending January 30, 2016 (the “fourth quarter”). The Company expects its full year tax rate to be approximately 38.5%.

Store Growth:		For the fourth quarter, the Company expects to open 11 stores and close six stores. This represents an 11% increase in total stores open by Thanksgiving compared with last year. For fiscal 2015, this totals 42 new store openings and 11 store closings.

Sales:		The Company expects total sales for the fourth quarter to range between $197 and $200 million. This implies a comparable store sales increase of flat to up 2%. Total sales for fiscal 2015 are expected to increase approximately 10% to 11% compared with fiscal 2014. This level of sales performance would imply a comparable store sales increase in the range of 2% to 3% for fiscal 2015.

Margin & Expenses:		The fourth quarter earnings forecast implies a decline in year-over-year gross profit margin. Operating expenses are expected to increase on a dollar basis due to the increase in stores, but decline as a percentage of sales for the fourth quarter. For the full year, the Company expects a modest decline in its operating margin due to lower merchandise margins and higher supply chain costs.

Cash Flow:		Capital expenditures in fiscal 2015 are estimated to range between $32 million and $34 million compared with $30 million in fiscal 2014.

Kirkland’s will host a conference call today, November 19, 2015, at 11:00 a.m. ET. The number to call for the interactive teleconference is (412) 542-4163. A replay of the conference call will be available through Friday, November 27, 2015, by dialing (412) 317-0088 and entering the confirmation number, 10075182.

A live broadcast of Kirkland’s quarterly conference call will be available online at the Company’s website www.kirklands.com under Investor Relations or https://www.webcaster4.com/Webcast/Page/957/11331 on November 19, 2015, beginning at 11:00 a.m. Eastern time. The online replay will follow shortly after the call and continue for one year.

About Kirkland’s, Inc.
Kirkland’s, Inc. was founded in 1966 and is a specialty retailer of home décor in the United States. Although originally focused in the Southeast, the Company has grown beyond that region and currently operates 379 stores in 35 states. The Company’s stores present a broad selection of distinctive merchandise, including framed art, mirrors, candles, lamps, picture frames, accent rugs, garden accessories and artificial floral products. The Company’s stores also offer an extensive assortment of gifts, as well as seasonal merchandise. More information can be found at www.kirklands.com.

Forward-Looking Statements
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause Kirkland’s actual results to differ materially from forecasted results. Those risks and uncertainties include, among other things, the competitive environment in the home décor industry in general and in Kirkland’s specific market areas, inflation, product availability and growth opportunities, seasonal fluctuations, and economic conditions in general. Those and other risks are more fully described in Kirkland’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K filed on April 14, 2015. Kirkland’s disclaims any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

KIRKLAND’S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)


	13-Week			13-Week
	Period Ended			Period Ended
	October 31,			November 1,
	2015			2014
Net sales	$	129,238		$	117,198
Cost of sales		81,137			71,446

Gross profit		48,101			45,752
Operating expenses:
Operating expenses		43,476			39,111
Depreciation		5,557			4,670

Operating income (loss)		(932	)		1,971
Other expense, net		12			1

Income (loss) before income taxes		(944	)		1,970
Income tax expense (benefit)		(674	)		710

Net income (loss)	$	(270	)	$	1,260

Earnings (loss) per share:
Basic	$	(0.02	)	$	0.07

Diluted	$	(0.02	)	$	0.07

Shares used to calculate earnings (loss) per share:
Basic		17,243			17,258

Diluted		17,243			17,734

KIRKLAND’S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)


	39-Week			39-Week
	Period Ended			Period Ended
	October 31,			November 1,
	2015			2014
Net sales	$	362,837		$	328,938
Cost of sales		224,561			202,711

Gross profit		138,276			126,227
Operating expenses:
Operating expenses		122,717			109,367
Depreciation		16,096			13,401

Operating income (loss)		(537	)		3,459
Other expense (income), net		41			(171	)

Income (loss) before income taxes		(578	)		3,630
Income tax expense (benefit)		(549	)		1,370

Net income (loss)	$	(29	)	$	2,260

Earnings (loss) per share:
Basic	$	(0.00	)	$	0.13

Diluted	$	(0.00	)	$	0.13

Shares used to calculate earnings (loss) per share:
Basic		17,252			17,300

Diluted		17,252			17,799

KIRKLAND’S, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)


	October 31, 2015		January 31, 2015		November 1, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	32,358	$	99,138	$	56,642
Inventories, net		95,460		55,775		77,456
Deferred income taxes		3,522		3,538		2,969
Other current assets		18,056		8,878		12,549

Total current assets		149,396		167,329		149,616
Property and equipment, net		107,000		90,992		90,683
Other assets		2,107		2,166		2,125

Total assets	$	258,503	$	260,487	$	242,424

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	53,962	$	24,705	$	32,049
Income taxes payable		—		5,648		—
Other current liabilities		26,927		27,027		25,296

Total current liabilities		80,889		57,380		57,345
Non-current deferred income taxes		4,279		4,138		3,116
Deferred rent and other long-term liabilities		51,896		47,907		46,305

Total liabilities		137,064		109,425		106,766

Net shareholders’ equity		121,439		151,062		135,658

Total liabilities and shareholders’ equity	$	258,503	$	260,487	$	242,424

KIRKLAND’S, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)


	39-Week			39-Week
	Period Ended			Period Ended
	October 31, 2015			November 1, 2014
Net cash used in:
Operating activities	$	(8,584	)	$	(4,473	)
Investing activities		(25,721	)		(24,049	)
Financing activities		(32,475	)		(3,886	)

Cash and cash equivalents:
Net decrease		(66,780	)		(32,408	)
Beginning of the period		99,138			89,050

End of the period	$	32,358		$	56,642


Contact:	Kirkland’s	SCR Partners
	Adam Holland	Jeff Black: (615) 760-3679
	(615) 872-4800	Tripp Sullivan: (615) 760-1104
		IR@Kirklands.com