It was a mixed second quarter for Kirkland’s, as the retailer posted sales growth but also a net loss.
For the second quarter ended July 29, Kirkland’s posted a net loss of $3.8 million, or 24 cents per diluted share, versus a net loss of $3.6 million, or 22 cents per diluted share, for the period a year earlier. An analyst average estimate published by MarketBeat called for a net loss of 28 cents per diluted share.
Net sales increased 7% to $131.7 million compared with the 2016 quarter as comparable sales increased 1.2% year over year.
“Second quarter results were in line with our expectations, and we continue to make demonstrable progress on our strategic initiatives to improve our merchandise assortment, optimize our promotional and marketing activity, and advance our overall operational execution,” said Mike Madden, Kirkland’s CEO. “Sales were driven by better trends in existing stores, new store productivity, and continued momentum at kirklands.com. The merchandise margin was under pressure from our planned assortment adjustments and a promotional retail environment. We maintained disciplined expense control and ended the quarter in a better inventory position.”