Net Halved for Kirkland's in First Quarter
NASHVILLE, Tenn.-First-quarter net income fell 51 percent for Kirkland's in its fiscal first quarter, to $3.2 million.
The home-furnishings retailer felt the weight of higher freight costs and a more promotional environment in the quarter, which ended on April 30. These factors reduced its gross margin by 313 basis points to 40.4 percent. Also, operating expenses jumped 11 percent in dollars and 292 basis points as a percentage of sales, to 31.4 percent.
Net sales finished the quarter at $94.4 million, up 1 percent over last year's first quarter. This included a drop of 8.4 percent in same-store sales.
Robert Alderson, Kirkland's president and CEO, said, "We continue to position the company for a stronger second half of the year, with emphasis on improvement in some of our key merchandising categories while managing through an environment of higher sourcing and input costs."