First quarter sales at home décor retailer Kirkland’s was up nearly 10% as the company reported strong gains in e-commerce revenues.
For the period ended April 30, total sales were $129.9 million, up 9.8% from the comparable quarter the previous year. Comparable store sales were up 0.5%.
Net income was $0.9 million, or $0.06 per diluted share, compared with net income of $2.5 million, or $0.14 per diluted share for the comparable quarter the prior year.
“The first quarter was in line with our expectations as we executed on our strategic priorities in a challenging traffic environment,” said Mike Madden, Kirkland’s president and CEO. “E-commerce revenues increased 28%, store conversion was positive, and our seasonal categories performed well.”
He noted that the company’s gross margin was impacted by a planned increase in promotional activity and startup costs for Kirkland’s new e-commerce fulfillment center.
Madden added that moderating inventory levels, combined with the new e-commerce fulfillment center and the company’s on-track new store opening plans, have Kirkland’s well positioned for the back half of the year.
“These developments are alleviating recent pressure on our supply chain and driving better efficiency across the organization as we prepare for the crucial fall and holiday selling periods,” he said.
Kirkland’s maintained its fiscal 2016 outlook, which provides for diluted earnings per share in the range of $0.98 to $1.11.
During the quarter, Kirkland’s opened 14 stores and closed eight, bringing the total number of stores to 382.