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.

Posted in News, Retail.

Last updated: November 18, 2011