May 21, 2009 |
Kirkland's Reports First Quarter Results |
Highlights:
• Comparable store sales increase 5.2% • Reverses prior-year loss with earnings of $0.17 per diluted share • Marks highest first quarter earnings as a public company
JACKSON, Tenn. (May 21, 2009) — Kirkland's, Inc. (NASDAQ: KIRK) today reported financial results for the 13-week period ended May 2, 2009.
Net sales for the 13-week period ended May 2, 2009, were $83.3 million compared with $84.1 million for the 13-week period ended May 3, 2008. Comparable store sales for the first quarter of fiscal 2009 increased 5.2% compared with 4.3% in the first quarter of fiscal 2008. Comparable store sales in mall stores increased 8.2% for the first quarter, and comparable store sales in off-mall stores increased 4.2%.
The Company opened 3 stores and closed 10 stores during the quarter to end the period with 292 stores. The Company reported net income of $3.5 million, or $0.17 per diluted share, for the 13-week period ended May 2, 2009, compared with a net loss of $2.6 million, or $(0.13) per diluted share, in the 13-week period ended May 3, 2008. Income tax expense for the 13-week period ended May 2, 2009, includes a rate benefit of approximately $1.0 million, or $0.05 per diluted share, related to the reversal of a portion of the valuation allowance on the Company's deferred tax assets established in prior periods. The reported net loss for the first quarter of fiscal 2008 included no tax benefit for the period.
Robert Alderson, Kirkland's President and Chief Executive Officer, said, "Customers are responding well to our merchandise assortments, and traffic was up slightly during the quarter. We continue to benefit from a lower cost structure – particularly in occupancy costs. Additionally, lower inbound and outbound freight costs had a positive effect on margin during the quarter.
"While the first quarter presented somewhat easier sales and margin comparisons, we are very pleased with the strong start to the year. We continue to focus on value, controlling operating costs and inventory, and improving our store base. While pleased with our operating performance thus far in 2009, economic conditions continue to cloud forward visibility."
Click on attachment for entire release and financial tables.
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