Kirkland's promotes from within, has ‘solid’ second quarter

Kirkland's SVP and CFO W. Michael Madden has been promoted to president and chief operating officer, effective immediately. Madden will remain the company’s principal financial officer pursuant to S.E.C requirements.



The company also promoted SVP of stores/human resources Michelle R. Graul to EVP of stores and merchandising, and VP of finance Adam C. Holland to chief accounting officer.



News of the promotions was concurrent with the company’s second quarter results. Net sales for the 13 weeks ended Aug. 2 increased 6.6% to $103.5 million compared with $97.1 million for the prior-year quarter. Comparable store sales, including e-commerce sales, increased 3.6%, compared with a decrease of 0.2% in the prior-year quarter.



Kirkland’s opened 6 stores and closed 2 during the quarter, bringing the total number of stores to 328.



The company reported a net loss of $1.1 million, or $0.06 per diluted share, for the quarter, compared with a net loss of $0.6 million, or $0.03 per diluted share, for the 13 weeks ended Aug. 3.



“We experienced a strong start and a strong finish to the quarter with comparable sales and margins in line with our expectations,” Robert Alderson, Kirkland's CEO, said. “Slower traffic experienced in June and some delays in new store openings related to the timing of space availability affected an otherwise solid second quarter. Early sales and margin trends in August are encouraging, and we will look to build on that momentum through the second half of the year. Seasonal product has also been introduced in the stores and has been well received.”



Looking ahead to the third quarter, the company anticipates net income of $0.02 to $0.04 per diluted share. Net sales are expected to be in the range of $113 million to $115 million with a comparable store sales increase in the range of 3% to 4.5%. The company expects to open approximately 13 stores and close approximately 2 stores during the quarter. Costs associated with the company’s move to a replacement headquarters building will amount to approximately $0.02 per diluted share in the third quarter.