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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details