Kirkland's swings to profit in Q3

Nashville, Tenn. Kirkland's said Friday it returned to a profit in the third quarter, helped in part by fewer markdowns and increased traffic.

Kirkland's earned $5.6 million, compared with a loss of $1.5 million in the year-ago period.

Revenue for the three months ended Oct. 31 rose 8% to $92.4 million from $85.9 million. Same-store sales increased 11.3% in the quarter.

The home-decor retailer lifted its full-year earnings outlook on its strong year-to-date performance.

The company said it plans to open 30 to 40 new stores in fiscal 2010 and close 15 to 20 locations.

Kirkland's had 296 stores at quarter's end.