Kirkland's Net Falls 9.3 Percent in Q1
May 24, 2013,
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.
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.
Other Articles By Author
Patti Carpenter Talks Color and its Importance in the Home
HFN's DIGITAL EDITION
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.
ALSO IN THIS ISSUE:
- 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.