A lot of losses for Kirkland

JACKSON, Tenn. Kirkland's third quarter earnings were anything but cheery for the holiday season.

The home furnishing company cited that the losses were caused by a pre-tax severance charge and additional taxations, corporate staff reductions, and pre-tax expenses relating to the opening of the company’s sales support office.

Kirkland reported a net loss of $10.7 million, or 55 cents per share, for the third quarter of fiscal 2007 compared with a net loss of $2.9 million, or 15 cents per share, for the third quarter of fiscal 2006.

Net sales for the quarter ending Nov. 3 were $88.7 million, an 8% decrease from the same time last year, while comparable-store sales for the third quarter of fiscal 2007 decreased 12.1%, twice the drop from the same time last year.

The company opened eight stores and closed one store during the quarter ending the quarter with 354 stores.

Kirkland’s ceo, Robert Alderson, addressed the losses, but said the company remains hopeful and will make strides to increase their profitability for the fourth quarter and fiscal year 2008.

"The results for the quarter were in line with what we had expected on a pre-tax basis… merchandise margins were impacted as we cleared out unproductive inventory, but we made great strides in improving our operating cost structure with significant across-the-board headcount reductions and other cost savings that will impact the fourth quarter and 2008,” Robert Alderson, Kirkland's ceo, said.