Kirkland's Home Q4 Sales Grow
Kirkland’s Home turned a profit in the fourth quarter with the help of seasonal products.
Net income in the fourth quarter was $10.1 million, or $0.78 per diluted share, versus a net loss of $3.8 million, or $0.30 per diluted share, in the 2022 quarter.
Net sales in the fourth quarter of 2023, a 14-week period, were $165.9 million versus $162.5 million in the prior-year 13-week quarter, with comparable sales on a 13-week basis increasing 1.7%. Operating income was $10.7 million versus an operating loss of $3.2 million in the 2022 quarter. Adjusted operating income was $11.3 million compared to an adjusted operating loss of $1 million in the year-prior quarter.
Kirkland’s closed nine stores during the period.
The company’s 2023 net loss was $27.8 million, or $2.16 per diluted share, versus a net loss of $44.7 million, or $3.52 diluted loss per share, in 2022.
Net sales in the 2023 53-week year were $468.7 million versus $498.8 million in the 52-week prior-year, with comparable sales on a 52-week comparison decreasing 4.8%.
Operating loss in 2023 was $24.4 million versus $42.8 million in 2022. Adjusted operating loss was $20.4 million compared to an adjusted operating loss of $37.8 million in the year prior
Kirkland’s in its fiscal year 2023 closed 16 stores and relocated one store to end the year with 330 stores.
"Fiscal 2023 was a year of significant change across our entire organization that culminated in a positive holiday sales season and healthy momentum to build off of going into 2024," said Amy Sullivan, CEO of Kirkland's Home. "The fourth quarter marked our first full quarter of capitalizing on the strategic repositioning initiatives we've implemented, which generated positive comparable sales results, strong gross margins, and healthy operating cash flow. Although we remain in the early stages of our strategic repositioning, we are pleased with the results we were able to generate to close out the year.”
As she looks ahead at the company’s fiscal year 2024, Sullivan said the company will continue prioritizing targeted engagement with its customer base and has been pleased with the in-store traffic levels the retailer has seen to start the year.
“Consumers remain highly price sensitive, and while we continue to see dampened demand for larger ticket items, the demand for seasonally relevant décor and accessories remains high, which is more than offsetting the lower average ticket trends we're experiencing thus far,” she said. “E-commerce traffic has been challenging in comparison to stores to start the year, and we are adjusting our promotional and marketing plans as well as making technical enhancements to support profitable sales growth online. We remain vigilant in managing our expenses, both operating and capital, as top line and margin improvements continue to take hold.”
