Kirkland's Goes from Loss to Gain in Q3
NASHVILLE, Tenn.-Accelerated, stronger product margins and increased average ticket propelled Kirkland's to $1 million in net income for its third quarter, compared to a net loss of $416,000 in the third quarter of last year.
Net sales in the quarter, which ended on Nov. 2, rose 9.8 percent to $106.1 million. Robert Alderson, Kirkland's president and CEO, said, "Sales momentum was strong during the quarter, as our fall and holiday seasonal merchandise performed well." Alderson also noted that traffic improved sequentially during the quarter.
Benefitting from the gains in product margins and average ticket, gross margin increased 358 basis points to 38.8 percent. Selling, general and administrative expenses rose 10.8 percent in dollars and 62 basis points as a percentage of sales, to 33.4 percent.
Looking ahead, Alderson said early fourth quarter trends indicate the momentum from the third quarter is continuing for Kirkland's. "Our plan for fiscal 2014 is to continue to build on our momentum with growth in sales, margin improvement, the execution of our multichannel strategies and further investments in branding and e-commerce," he said. "We also believe that fiscal 2014 is an opportune time to begin a more aggressive approach to store growth."