Kirkland’s continues to benefit in-store and online from changing homebound consumer lifestyles and purchasing trends in the third quarter.
Third quarter net sales increased 1.2% to $146.6 million. Comparable store sales increased 8.9%, including e-commerce growth of 49.9%.
Net income was $12.3 million compared with a net loss of $22.3 million in the previous third quarter. Earnings per diluted share in the quarter were $0.82 compared with loss per diluted share of $1.61 in the prior year.
“The momentum we established late last year has continued through the third quarter with positive comparable sales in both the store and e-commerce channels exceeding our expectations, significant year-over-year margin improvement and permanent cost reductions driving earnings growth and cash generation,” said Woody Woodward, CEO, Kirkland’s. “While home furnishing is currently receiving the benefit of the reallocation of customer spending, there is much within this transformation of Kirkland’s that is a direct result of our own actions and investments. We have elevated the merchandise assortment with improved quality and design while maintaining our value proposition, improved our customer experience both in store and online and adapted our financial and operating infrastructure to maximize profitability. We are pleased with the impact these changes have had on our performance and are even more encouraged by the fact that the benefits have become very evident at these early stages of our evolution.”
Woodward added, “The increased demand driven by our e-commerce channel and the strong performance in both our harvest and Christmas season merchandise more than offset the 51 fewer stores in the base from a year ago. The late October relaunch of our loyalty program has already added hundreds of thousands of new members in a few weeks’ time, and we are pleased with the response to Black Friday and Cyber Monday. Similar to others in our sector, we continued to experience a shift to online during the month of November with Black Friday shopping spread out over a longer period. We believe we have established a good start to the fourth quarter by growing profitability with year-over-year margin gains and a solid comparable sales improvement, particularly in e-commerce.”