Kirkland's Trims Q2 Loss
Posted on August 22, 2013 by
NASHVILLE, Tenn.-Stronger sales and gross margin enabled Kirkland's to cut into its second quarter net loss, which totaled $577,000, compared to the $2 million net loss from last year's second quarter.
Net sales rose 6.7 percent to $97.1 million in the quarter, which ended on Aug. 3, and which included a same-store sales decrease of 0.2 percent. Gross margin gained 374 basis points to 36.7 percent. Operating expenses increased 6.6 percent in dollars but were down four basis points as a percentage of sales, to 33.7 percent.
Robert Alderson, Kirkland's president and CEO, noted that the company's second-quarter financials benefited from a less promotional approach to merchandise in the quarter. "Consistent trends through the second quarter, combined with a stronger margin and less promotional stance, led to in-line sales and better-than-anticipated earnings results," Alderson said.
"We are well positioned to deliver on stronger second-half performance with improving trends in our merchandise margin, conversion and average ticket," he added. "While traffic remains a challenge, we are encouraged by the initial test results from our branding initiatives, and will look to extend and expand our activities during the second half of 2013."