Top Performer for Monday: Kirkland's (KIRK)

Shares of Kirkland's, Inc. (KIRK - Analyst Report) are surging more than 14% today on higher-than-normal volume of 634,000. On average, the company's volume is about 555,000.

Earnings estimates for this specialty retailer of home decor have also been jumping lately after a respectable fiscal first-quarter performance on May 21.

There are 224 stocks on today's Zacks #1 Rank List, and 41 of them are retail related. However, KIRK is the only company from the retail-home furnishings industry.

Estimates Shooting Dramatically Higher

There are only 2 analysts covering KIRK right now, but they have both raised estimates for the year ending January 2010 in the past 30 days. As a result, the consensus has jumped more than 78% to 82 cents from 46 cents.

That advance includes a sharp gain of more than 36% from 60 cents in the past 7 days.

A Good Start to the Fiscal Year

Late last month, KIRK stated that traffic was up slightly during its fiscal first quarter as customers responded well to its merchandise assortments. Net sales declined a bit to $83.3 million from $84.1 million, but same-store sales increased 5.2%. In the year-ago quarter, same-store sales were up 4.3%.

More specifically, same-store sales in malls advanced 8.2%, while same-store sales at off-mall stores moved higher 4.2%.

Earnings per share reached 17 cents, which soared past the consensus for a 9-cent loss by nearly 290%. The year-ago quarter saw a loss of 11 cents.

"We continue to benefit from a lower cost structure -- particularly in occupancy costs," stated President and CEO Robert Alderson. "Additionally, lower inbound and outbound freight costs had a positive effect on margin during the quarter."