Kirkland's Net Drops for Q4, Fiscal Year; CEO Alderson to Retire
March 14, 2013,
NASHVILLE, Tenn.-In spite of sales increases for both the fourth quarter and the fiscal year, Kirkland's net income fell 6.1 percent in the quarter, to $14.3 million, and 27.8 percent for the year, to $13.8 million.
The retailer's president and CEO, Robert Alderson, has also said he intends to retire at the end of this fiscal year, which will be near the beginning of February 2014--thus ending a 27-year career with Kirkland's.
Net sales in the quarter, which ended Feb. 2, jumped 9.2 percent to $162.9 million, including a 2.6 percent shortfall in same-store sales. For the fiscal year, net sales totaled $448.4 million, up 4.3 percent and including a same-store sales decrease of 3 percent.
Crimping the bottom line, gross margin in the quarter fell 241 basis points to 40.6 percent. Operating expenses, while dropping 42 basis points as a percentage of sales, rose 7.4 percent in total dollars.
Looking ahead, Kirkland's said it expects a 5 to 7 percent gain in net sales for the current fiscal year, along with "a nominal decrease to a nominal increase" in same-store sales.
Regarding his retirement, Alderson said, "Over the course of the year, we will continue to work on substantially upgrading our merchandising talent and leadership. I have enjoyed the last 27 years at Kirkland's, but now is the right time to begin recasting the leadership."