Top Performer for Fri: Kirkland's (KIRK)

Shares of Kirkland's, Inc. (KIRK - Analyst Report), a specialty retailer of home decor, are up about 7% Friday, which is enough to be recognized as a top-performing Zacks #1 Rank company.

KIRK, as well as its industry, got some help recently from a solid report out of Bed Bath & Beyond, Inc. (BBBY - Analyst Report). In addition, the company received a brokerage upgrade today to "Buy" from "Neutral".

Earnings estimates remain well above levels from 2 months ago by 67% for the fiscal year ending January 2010 and by 59% for the fiscal year ending January 2011.

KIRK is the only company from the retail - home furnishings industry on today's Zacks #1 Rank List, which includes 224 stocks. It is trading on extremely high volume of more than 1.1 million, compared to its average of 481,000.

First Quarter Earnings were Solid

KIRK reported a good start to its fiscal year on May 21 with first-quarter earnings per share of 17 cents, which soared past the consensus of a 9-cent loss by nearly 290%. The year-ago quarter saw a loss of 11 cents.

Net sales declined a bit to $83.3 million from $84.1 million, but same-store sales increased 5.2%. Same-store sales in malls advanced 8.2%, while same-store sales at off-mall stores moved higher 4.2%.

KIRK had stated that traffic was up slightly during its fiscal first quarter as customers responded well to its merchandise assortments.

BBBY Helps Out

A good fiscal first-quarter report out of BBBY helped the home furnishings industry this week, including KIRK.

BBBY, benefiting from the bankruptcy filed by peer Linens 'n Things last May, reported first-quarter earnings of 34 cents per share, beating the consensus EPS estimate and the year-ago result.

Net sales rose 2.8% to $1.69 billion. Same-store sales declined by a less-than-expected 1.6%.

Read the full analyst report on BBBY

Read the full analyst report on KIRK