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Kirkland's Q1 comparable store sales increased 0.5%

Staff writer ▼ | May 24, 2016
Kirkland's reported financial results for the first quarter ended April 30, 2016. Net sales increased 9.8% to $129.9 million compared with $118.3 million for Q1 2015.
Retail   E-commerce revenues increased 28%
Comparable store sales for the first quarter of fiscal 2016, including e-commerce sales, increased 0.5% compared with an increase of 3.0% in the prior-year quarter.

Kirkland's opened 14 stores and closed 8 during the first quarter of fiscal 2016, bringing the total number of stores to 382 at quarter end.

Net income for the 13 weeks ended April 30, 2016 was $0.9 million, or $0.06 per diluted share, compared with net income of $2.5 million, or $0.14 per diluted share, for the 13 weeks ended May 2, 2015.

"The first quarter was in line with our expectations as we executed on our strategic priorities in a challenging traffic environment," said Mike Madden, president and CEO.

"E-commerce revenues increased 28%, store conversion was positive, and our seasonal categories performed well. As expected, gross margin was impacted by a planned increase in promotional activity and startup costs for our new e-commerce fulfillment center. Operating expenses were tightly managed during the quarter and will remain a focus throughout the year."

"Importantly, we believe we're well-positioned to execute on our plans for 2016," continued Mr. Madden. "Inventory levels are moderating, and our new e-commerce fulfillment center is now fully operational. The fourteen stores we opened in the first quarter are performing above plan, and we expect to have the entire 2016 class open by the end of the third quarter.

"These developments are alleviating recent pressure on our supply chain and driving better efficiency across the organization as we prepare for the crucial fall and holiday selling periods."

Kirkland's maintained its fiscal 2016 outlook given on March 11, 2016, which provides for diluted earnings per share in the range of $0.98 to $1.11.