Kirkland's Net Falls 9.3 Percent in Q1

NASHVILLE, Tenn.-Although sales increased and expenses were held relatively in check, Kirkland's reported a 9.3 percent drop in first-quarter net income, to $1.8 million.

Net sales increased 3.5 percent to $101.2 million in the quarter, which ended on May 4. Included in this was a same-store sales decline of 2.3 percent, resulting from reduced traffic in the company's stores, according to W. Michael Madden, Kirkland's chief financial officer, who commented on the results on a conference call to retail analysts.

Operating expenses rose 1.5 percent in dollars and fell 63 basis points as a percentage of sales, to 32.4 percent. However, gross margin decreased 41 basis points to 38.9 percent, due to reduced merchandise margins and higher freight costs, Madden said.

Based on these results, Kirkland's said it expects total sales for the fiscal year to rise from 3 to 5 percent, with flat results in same-store sales. Robert Alderson, the retailer's president and CEO, said trends that emerged later in the first quarter pointed to increased sales and margins ahead. "However, there is still much work to do in firmly establishing a positive merchandising trend as well as leveraging our ongoing investments in technology, growing e-commerce, improving traffic, focusing on tight expense controls and executing our new branding initiatives," Alderson said.

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.


  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.