Kirkland's reports sluggish 4Q results

JACKSON, Tenn. Kirkland's reported net sales of $138.3 million for the 13-week period ended Feb. 2 compared with $167.5 million for the 14-week period ended Feb. 3, 2007. According to the company, the additional week in the prior year fourth quarter and full year period resulted in approximately $8 million in total sales.

Excluding the additional week, comparable-store sales for the fourth quarter of fiscal 2007 decreased 12.6%. The company reported a 6.1% comparable-store sales decrease in the prior-year quarter.

Net sales for the 52-week period ended Feb. 2 were $396.7 million compared with $446.8 million for the 53-week period ended Feb. 3, 2007. Comparable-store sales for fiscal 2007 decreased 13.3% compared with a 6.6% decrease in the prior-year period.

Kirkland's reported net income of $1.5 million, or 8 cents per diluted share, for the 13-week period ended Feb. 2, compared with net income of $11.4 million, or 58 cents per diluted share, in the 14-week period ended Feb. 3, 2007.

The company reported a net loss of $25.9 million, or $1.33 per share, for the 52-week period ended Feb. 2, compared with a net loss of $0.1 million, or 1 cent per share, for the 53-week period ended Feb. 3, 2007.

According to the company, its fourth quarter and full year results included an impairment charge of $1.4 million, or 7 cents per share, related to 100% of the carrying value of its goodwill.

According to the company, its full year results included an The results for the full year fiscal 2007 included the following items:

Robert Alderson, Kirkland's ceo, said, "Our most important objectives for the fourth quarter were to improve the liquidity and cash flow of the company while continuing to make progress on our merchandising execution. To strengthen our balance sheet, we closed underperforming stores, slowed store opening and capital expenditure plans, cut fixed overhead costs and planned for the sale of under-utilized assets. Despite one of the tougher quarters in recent memory in terms of macroeconomic trends and margin pressures, we were able to hit our targeted inventory level while refocusing our assortments toward fiscal 2008.