NASHVILLE, Tenn. — Dwelling décor and furnishings specialty retailer Kirkland’s posted second quarter earnings, a interval that was “challenged by decrease site visitors and the aggressive liquidation efforts in Q2 final yr,” in response to the corporate’s interim CEO.
Web gross sales for the interval have been $89.5 million, down 12.3% from the yr in the past interval, with comparable gross sales reducing 9.7% and together with a 16.6% decline in e-commerce gross sales.
Each working earnings and internet earnings improved year-over-year, up 17% and practically 25%, respectively. The development year-over yr was attributed to decrease compensation prices and decrease promoting bills.
“The second quarter gross sales outcomes have been challenged by decrease site visitors and the aggressive liquidation efforts in Q2 of final yr that offered a troublesome gross sales comparability, period-over-period,” stated Ann Joyce, interim CEO. “Though we remained promotional in the course of the quarter, we consider the shifting of our model voice in the direction of worth and a normalizing provide chain allowed us to enhance our merchandise margin by 320 foundation factors year-over-year. We additionally consider we exercised improved management of our stock as we rebalanced our merchandise assortment for the again half of the yr, leading to 30% decrease stock ranges and decrease borrowings than the prior yr.”
Joyce added that the corporate noticed this quarter as a transition interval heading into the harvest and vacation promoting seasons.
“We’re inspired by the early response to our seasonal assortments and our renewed emphasis on dwelling décor, each of which can change into extra outstanding as we get deeper into the vacation interval,” she stated.
As of July 29, the corporate had a money stability of $4.9 million, with $46 million excellent debt underneath its’ $90 million senior secured revolving credit score facility.
See additionally: Furniture getting a rethink at Kirkland’s as Q1 sales drop