Kirkland’s tops Street; will open 35-40 stores

Nashville, Tenn. – Kirkland’s Inc. topped Wall Street predictions for earnings and sales in the first quarter of fiscal 2015. Net income increased 23% to $2.53 million, from $2.05 million a year earlier.



Growth in cost of sales and operating expenses lagged the rate of revenue growth, boosting net income. Net sales rose 9% to $118.31 million, from $108.25 million. Same store sales, including e-commerce sales, grew 3%.



Kirkland’s plans to open 35 to 40 new stores and close 10 to 15 stores in fiscal 2015. New store openings are expected to be weighted toward the second and third quarters of the year, and store closings are expected to be spread evenly throughout the year.



Total sales for fiscal 2015 are expected to increase approximately 10% to 12%, with a same-store sales increase of approximately 3% to 5%.



“We're pleased with our sales and earnings growth for the quarter. Sales came in at the top end of our guidance range, and earnings exceeded our expectations driven by strong merchandise margins and expense leverage in stores and e-commerce,” said Mike Madden, president and CEO. “Weather and the West Coast port delays presented challenges in the quarter, but our teams executed extremely well."