Home furnishing maker Kirkland's declares Q2 results
18 Aug '05
4 min read
We also continued to make progress in re-positioning our product assortments for the second half of the year. While clearance efforts during the quarter have left us in a favorable inventory position, we experienced some gross margin pressure as a result. Another area of focus for us in the quarter was completing our merchandising team. With this new team taking shape, we are confident that we can execute the strategic direction we have established."
Third Quarter and Fiscal 2005 Outlook
The Company issued guidance for the third quarter ending October 29, 2005, of a net loss of $0.12 to $0.16 per diluted share, compared with a net loss of $0.16 per diluted share in the prior-year period. Net sales are expected to be $87 million to $90 million, with a comparable store sales decrease of 3 percent to 6 percent compared with net sales of $82.8 million and a comparable store sales decrease of 13.5 percent in the prior-year period.
The Company expects to report earnings for fiscal 2005 in a range of $0.12 to $0.20 per diluted share, net sales of approximately $415 million to $420 million, and a comparable store sales decrease of 5 percent to 7 percent. The Company expects to open 60 new stores and close 30 stores, or a net increase of 30 stores, in fiscal 2005.
Lewis added, "Although our sales and earnings outlook for the second half of the year continues to be influenced by the weak traffic trends in their mall stores and the reality of revamping our merchandise offerings in time for the holiday selling season, we are seeing some signs of better business. Our strategic direction is firmly set as they have identified where Kirkland's will create a point of difference in the marketplace by presenting a focus on traditional, classic styles to their customers with coordinated visual presentations. The strategies they are implementing on a daily basis point us toward these goals, and the senior management team we have assembled is focused on delivering exceptional value and higher levels of service in our stores. While their top priority remains re-establishing positive comparable store sales during the second half of the year, they believe it is prudent for us to expect that the impact from these strategies will not be fully reflected until early 2006."
marketing@alchempro.com
