Kirkland's keeps profit streak alive

The strong sales momentum at Kirkland's during the holidays apparently held through January, as the retailer just reported a big jump in same store sales for the fourth quarter.

The company increased net income during the fourth quarter of fiscal 2014 26% to $15.6 million, from $12.3 million in the year-earlier period. Net sales increased 14.5% to $178.7 million, from $156.1 million. Same-store sales, including e-commerce sales, increased 8.2%.

"As we look to the longer term, our goal is to grow sales at a double-digit rate and return our operating margin to the high-single-digit range,” said Mike Madden, president and CEO. “To achieve these targets and deliver the returns we expect for our shareholders, we will be executing initiatives over the coming quarters to increase in-store productivity, optimize real estate growth, improve our e-commerce channel and tighten the focus on capital allocation."

The company posted profitable growth as it makes plans to expand store and e-commerce channels. Madden said the company’s strong momentum to end 2014 -- marked by record sales and increased earnings guidance -- is a tangible outcome of investments to fortify our technology and deepen our team.

"As we look to the longer term, our goal is to grow sales at a double-digit rate and return our operating margin to the high-single-digit range. To achieve these targets and deliver the returns we expect for our shareholders, we will be executing initiatives over the coming quarters to increase in-store productivity, optimize real estate growth, improve our e-commerce channel and tighten the focus on capital allocation."

Kirkland's opened 11 stores and closed 4 during the fourth quarter, bringing the total number of stores to 344 at quarter end.