Kirkland’s Posts Mixed Results In Q2

Kirkland’s, Inc. has reported financial results for its second quarter ended August 1, 2015, closing the quarter with a net sales increase while seeing a decline in net income.

Net sales increased 11.4% to $115.3 million compared with $103.5 million in the 2014 second quarter.

Comparable store sales for the second quarter of fiscal 2015, including e-commerce sales, increased 6.7% compared with a comparable store sales increase of 3.6% in the prior-year quarter.

For the second quarter, the company reported a net loss of $2.3 million, compared with a net loss of $1.1 million in the previous second quarter.

Mike Madden, Kirkland’s president and CEO, said, “Our sales trend was solid during the quarter, driven primarily by strong in-store conversion rates and a higher average ticket. Like the first quarter, traffic remained somewhat uneven, but we were able to repeat a strong merchandise margin performance from last year and ended the quarter with fresh and current inventories. We are pleased with the progress we are making in our e-commerce channel and encouraged by the strong early performance from this year’s class of new stores.”

Looking ahead, in its fiscal year 2015 outlook, the company expects to open 40 new stores and close 10 to 15 stores. The bulk of the remaining new store openings are expected to occur during the third quarter, and most of the remaining store closings are expected to happen at the end of the fiscal year.

In the second quarter, Kirkland’s opened nine stores, bringing the total number of stores to 351 in 35 states.