Kirkland's Net Drops 45 Percent in Third Quarter

NASHVILLE, Tenn.-Rising expenses weakened the bottom line for specialty home retailer Kirkland's in its fiscal third quarter ending on Oct. 29.

Net income fell 45 percent to $1.2 million. Operating expenses rose 7.6 percent in dollars and picked up 88 basis points as a percentage of net sales, to 32.2 percent. Gross margin fell 160 basis points to 37.2 percent.

These increased costs offset a 4.7 percent gain in net sales in the quarter, which totaled $97.1 million. Same-store sales fell 6.7 percent. Year to date, Kirkland's has opened 23 stores and closed 22.

The company said it expects net sales in the fourth quarter to reach from $142 million to $145 million, and that same-store sales will drop from 2 to 5 percent.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

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