Kirkland's Net Down for Q4, Up for FY
NASHVILLE, Tenn.-A downtick in sales and a heavier expense load resulted in a 13.5 percent decline in net income for Kirkland's in its fourth quarter, to $12.3 million. For the fiscal year ending on Feb. 1, Kirkland's posted net income of $14.5 million, up 5.3 percent from the prior fiscal year.
Net sales in the quarter fell 4.2 percent to $156.1 million, with same-store sales (including e-commerce) essentially flat compared to the prior year. This brought Kirkland's top line for the fiscal year to $460.6 million, an increase of 2.7 percent and including a 0.5 percent pickup in same-store sales.
Selling, general and administrative expenses in the quarter rose 1.8 percent in dollars and 150 basis points as a percentage of sales, to 25.6 percent. Gross margin was up 81 basis points to finish the quarter at 41.4 percent.
Robert Alderson, Kirkland's president and CEO, said the quarter's results were better than the retailer had expected. "Despite continued adverse weather events throughout February and into March, the early first-quarter sales and margin trends have been positive and encouraging," Alderson said. "As we look to fiscal 2014, we remain excited about the investments in store growth, merchandise systems and process improvement, greater e-commerce capabilities and focused branding initiatives that we expect to drive improved traffic, sales and earnings results."