Josh Arnold
Long/short equity

Kirkland's Rising Margins Should Propel The Stock Higher

Overview and Thesis

Kirkland's (NASDAQ:KIRK) is a specialty retailer of home décor including furniture, lamps, textiles, accessories and more. The company currently operates about 320 stores that are typically located in strip malls. KIRK competes with other home décor retailers such as HomeGoods (NYSE:TJX) and Pier 1 (NYSE:PIR) but I get a different feel from KIRK's stores. They tend to be much smaller and offer a more focused array of goods than the bigger players I just mentioned. The difference is Kirkland's stores tend to feel like specialty shops despite the chain's rather large footprint. I believe it is this and other factors that have driven the stock to multi-year highs of late and...

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