Home decor retailer lowers guidance on weak Q4
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Kirkland’s same-store sales fell in the fourth quarter amid weak traffic early in December.
The home décor chain reported that its net sales for the 13 weeks ended January 28, 2017, increased 2.1% to $203.2 million compared to the year-ago period. Same- store sales for the quarter, including e-commerce sales, decreased 4.6%.
"We were not immune from the broader trends impacting much of the retail industry during the fourth quarter," said Mike Madden, president and CEO. "Trends proved to be more difficult than we anticipated as strong sales on Black Friday were offset by weak pre-holiday traffic in December, and improved post-holiday sales were not enough to overcome December's softness. On a more positive note, we experienced another quarter of double-digit growth in our e-commerce business, and we managed operating expenses and inventories well throughout the season."
The retailer said it remained confident about its long-term outlook, noting that it entered 2017 “with inventories on plan and a strong balance sheet.”
“We've enhanced our management team, and we're focused on improving our pricing and promotional mix, merchandise assortment composition, marketing execution, and in-store experience as part of our long-term strategy,” said Madden.
Based on the fourth quarter sales results, Kirkland's now expects full year 2016 diluted earnings per share in the range of $0.56 to $0.61, compared with its prior guidance of $0.70 to $0.75 per diluted share.
Kirkland’s operates 398 stores in 36 states.