Kirkland’s Sales Slip In Q4

Kirkland’s net sales slipped in the fourth quarter, as the retailer pointed to weakness in its brick-and-mortar sales while it worked to improve its omnichannel capabilities.

Net sales for the fourth quarter ended February 2, 2019, were $216.1 million compared with $224.6 million for previous fourth quarter. Comparable store sales, including e-commerce sales, decreased 3.3% compared to an increase of 2% in the prior year.

Net sales for the fiscal year were $647.1 million compared with $634.1 million for the previous fiscal year. On a 52-week comparison, comparable store sales, including e-commerce sales, decreased 1.3% compared to an increase of 0.3% in the prior year.

“We were disappointed with our fourth quarter performance, which was influenced by several factors,” said Steve Woodward, Kirkland’s CEO. “Aspects of the core assortment, particularly wall décor, remained challenging. Seasonal product performed well, and we made important strides in gifting and new relevant products in January. Yet these were not enough to offset weakness in brick-and-mortar sales driven by an ongoing shift in channel mix. January was also impacted by port constraints that affected product flow.”

“We have a clear and well-defined plan that we believe will stabilize performance in 2019 as we make strategic investments to drive long-term sales and earnings growth,” continued Woodward. “We are moving aggressively to evolve the business. Our focus includes work to expand category relevancy, accelerate direct sourcing and improve omnichannel profitability. We have a strong value proposition and a healthy balance sheet to support our strategy.”