Kirkland Reports Strong Q3 Sales Growth

 

Third-quarter sales at Kirkland’s were up sharply with company officials reported that its execution of its merchandising and store operating plans yielded strong sales and margin improvements.

Net sales for the 13-week period ended October 31 increased 7.6% to $92.4 million compared with $85.9 million for the 13-week period ended November 1, 2008. Comparable store sales for the third quarter of fiscal 2009 increased 11.3% compared with an increase of 1.2% in the prior year period. Comparable store sales in off-mall stores increased 11.2% for the quarter, and comparable store sales in mall stores increased 11.7%. The company opened 7 stores and closed 2 stores during the quarter to end the period with 296 stores.

Net sales for the 39-week period ended October 31, 2009, increased 2.2% to $263.4 million compared with $257.6 million for the 39-week period ended November 1, 2008. Comparable store sales for the 39 weeks ended October 31, 2009 increased 7.6% compared with an increase of 2.7% in the prior year period. Comparable store sales in off-mall stores increased 7.3% for the period, and comparable store sales in mall stores increased 8.4%. The company opened 15 stores and closed 18 stores during the 39-week period.

“Our operating performance through the first three quarters provides greater confidence in our outlook for the fourth quarter,” said Robert Alderson, Kirkland’s president/CEO.

“With earnings through the first three quarters already exceeding full year fiscal 2008 earnings, we are well on our way to a record year for Kirkland’s.”

Alderson added that despite the strong results for the first three quarters, the company remains cautious in the near term. “The deteriorating unemployment situation and its potential impact on consumer spending remains a concern despite the supposed end to the 2008-2009 recession,” he said.