Kirkland's sales hurt by soft home market

JACKSON, Tenn. Kirkland's today reported that net sales for the 13-week period ended May 5, were $82.3 million compared with $92.6 million for the 13-week period ended April 29, 2006. Comparable-store sales for the first quarter of fiscal 2007 decreased 18.8%. The company reported a 5.1% comparable-store sales decrease in the prior-year quarter.

The company reported a net loss of $7.5 million, or 38 cents per diluted share, for the first quarter of fiscal 2007, compared with a net loss of $3 million, or 16 cents per diluted share, for the prior-year period.

Robert Alderson, Kirkland's ceo, said, "Traffic trends were once again very challenging and reflect continued softness in the home decor retail sector. Customer reaction to certain merchandise themes we introduced during the quarter has been mixed, and we are refining the way we execute our presentation and marketing to deliver more focus on key items and value."