Kirkland's Net Drops 45 Percent in Third Quarter
NASHVILLE, Tenn.-Rising expenses weakened the bottom line for specialty home retailer Kirkland's in its fiscal third quarter ending on Oct. 29.
Net income fell 45 percent to $1.2 million. Operating expenses rose 7.6 percent in dollars and picked up 88 basis points as a percentage of net sales, to 32.2 percent. Gross margin fell 160 basis points to 37.2 percent.
These increased costs offset a 4.7 percent gain in net sales in the quarter, which totaled $97.1 million. Same-store sales fell 6.7 percent. Year to date, Kirkland's has opened 23 stores and closed 22.
The company said it expects net sales in the fourth quarter to reach from $142 million to $145 million, and that same-store sales will drop from 2 to 5 percent.