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NASHVILLE, Tenn. – Home decor retailer Kirkland's Inc. said Wednesday it turned a profit in the second quarter, helped by lower freight expenses and occupancy costs.
The company, which has been closing mall-based stores as leases expire, said it earned $3.4 million, or 17 cents per share, in the 13 weeks ended Aug. 1. In the same period last year, it lost $1.7 million, or 9 cents per share. Revenue was flat, at $87.7 million, with 34 fewer stores on average than a year ago.
Kirland's, which sells framed art, lamps, accent rugs and other products, said its merchandise margins and traffic counts improved during the second quarter. Same-store sales, or sales at stores opened at least a year, rose 6.1 percent. Its off-mall stores sales increased 6.3 percent, while sales in mall stores rose 5.5 percent.
Sales at stores open at least a year are an important retail performance indicator because they measure sales at existing locations rather than newly opened ones.
Kirland's said it expects 2009 earnings will be "significantly above" the $10.1 million it earned in fiscal 2008, with sales "moderately below" last year's results.
Shares of Kirkland's have increased nearly fivefold since the beginning of the year. In morning trading on Wednesday, its shares rose $1.34, or 10.7 percent, to $13.87.
