Kirkland’s has reported in-store and online sales growth for the fourth quarter and fiscal year.
Net sales for the fourth quarter ended February 3, 2018, were $224.6 million compared with $203.2 million for the previous fourth quarter. Comparable store sales, including e-commerce sales, increased 2% against a decline of 4.6% in the prior year.
For the fiscal year, net sales were $634.1 million compared with $594.3 million for previous fiscal year. Comparable store sales, including e-commerce sales, increased 0.3% against a decline of 2.9% in the prior year.
“A very strong November and Black Friday weekend drove a fast start to the fourth quarter,” said Mike Madden, president and CEO, Kirkland’s. “We had healthy sell-through of seasonal décor, and we continue to be very pleased with the growth in e-commerce, where sales increased over 30% for both the quarter and the year. Store traffic slowed in the latter half of the quarter as we experienced a further shift in holiday shopping patterns, and that resulted in a higher-than-expected level of promotional activity. The related merchandise margin pressure impacted fourth quarter earnings, despite operating expenses that were in line with expectations. We ended the year with a strong cash position, and inventories are in good shape.”
Based on the fourth quarter sales results, Kirkland’s now expects full year 2017 diluted earnings per share in the range of $0.32 to $0.34, which includes an approximate $0.04 per share negative impact related to the adjustment of deferred taxes due to the Tax and Jobs Act of 2017 and severance charges associated with a staff reorganization.