Kirkland's reports 1st quarter 2013 results
May 23, 2013-- Home Accents Today,
NASHVILLE, Tenn. - Kirkland's, Inc. today reported financial results for the 13-week period ended May 4, 2013.
Net sales for the 13 weeks ended May 4, 2013, increased 3.5% to $101.2 million compared with $97.8 million for the prior-year quarter. Comparable store sales, including e-commerce sales, for the first quarter of fiscal 2013 decreased 2.3% compared with a decrease of 1.2% in the prior-year quarter. The home décor retailer opened one store and closed seven during the first quarter of fiscal 2013, bringing the total number of stores to 317 at quarter end.
Robert Alderson, Kirkland's president and CEO, said, "Although we had a slow start to February consistent with our cautious outlook for the first half of the year, we experienced an improvement in trends later in the quarter. The better sales and margin performance in the latter weeks of the quarter exceeded our expectations and has modestly improved our outlook. However, there is still much work to do in firmly establishing a positive merchandising trend as well as leveraging our ongoing investments in technology, growing e-commerce, improving traffic, focusing on tight expense controls and executing our new branding initiatives."
For the fiscal year 2013 ending Feb. 1, 2014, the company expects to open 25 new stores and close 15. New store openings will be weighted more toward the second and third quarters of the year, while closings will be weighted more toward the first half of the year.
Total sales are expected to increase approximately 3% to 5% compared with 53-week fiscal 2012. This level of total sales performance implies comparable store sales results of flat to a slight increase for fiscal 2013.
Based on the current outlook, inbound freight costs should be higher for the second quarter, but improve in the second half of the year offsetting the negative first half margin impact.
Kirkland's, Inc. was founded in 1966 and operates 315 stores in 35 states.