Kirkland’s Comps Decline In Q1

Kirkland’s pointed to a slow February resulting in a comparable store sales decline in the first quarter. The retailer’s chief financial officer has also resigned.

Net sales for the first quarter ended April 29, 2017, increased 2.3% to $132.8 million compared with $129.9 million in last year’s first quarter. Comparable store sales, including e-commerce sales, decreased 3.8%.

The retailer reported a net loss in the first quarter of $1.4 million, or $0.09 per diluted share, compared with net income of $0.9 million, or $0.06 per diluted share, for the previous first quarter.

“Although we had a slow start to February, we experienced improvement in sales trends as we progressed through the quarter,” said Mike Madden, CEO, Kirkland’s. “Highlights for the quarter included stabilization in several key product categories and definitive progress on our path to improve our merchandise assortment. Operating expenses and inventory levels remained well-controlled, and I am very pleased with the first quarter’s e-commerce results, which achieved a 32% increase in revenue and reflected improvements in our operating efficiency.”

In addition, Kirkland’s vp/chief financial officer, Adam Holland, has resigned to assume a similar role with a company in the health care industry. Holland will remain with Kirkland’s in his current capacity until June 14.  The company has named its controller, Nicole Strain, to serve as interim chief financial officer.