Kirkland's Posts Loss in Second Quarter

NASHVILLE, Tenn.-Higher expenses and reduced margins combined to produce a net loss of $480,000 for Kirkland's in its fiscal second quarter.

Gross margin finished the quarter, which ended on July 30, at 34.4 percent, 451 basis points off last year's second quarter. Robert Alderson, Kirkland's president and CEO, said margins were cut due to aggressive markdowns, which he said were necessary to keep its inventories positioned for the second half of the fiscal year. Selling, general and administrative expenses rose 7.9 percent in dollar terms and 229 basis points as a percentage of sales, to 32.1 percent.

Sales rose by just 0.2 percent to $89.7 million. Alderson said Kirkland's is focusing on new merchandise initiatives, but added that the third quarter will look much like the second quarter if current trends continue.

"Recent economic tumult may further impact consumer sentiment and spending in the back half," he said, "but we are financially well positioned to continue our controlled growth and weather an uncertain economic environment."

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.


Current Issue

  • HFN May digital issue


    May 2017

    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money