Home décor and furnishing retailer Kirkland’s has reported that its operating loss was $10.3m in the first quarter (Q1) of fiscal year (FY) 2023 compared to $11.1m in the corresponding period of FY22.
The improvement in operating loss was due to lower advertising and store payroll expenses.
For the 13-week period to 29 April 2023, the company’s net sales were $96.9m, down from $103.3m a year ago due to a decline in traffic.
During the month, Kirkland’s comparable same-store sales declined by 4.4% and e-commerce sales dropped by 6.6%.
Gross profit was $25.9m in Q1 FY23, accounting for 26.7% of net sales.
Its net loss for the quarter was $12.1m in Q1 FY23 compared to its $7.9m in the same period a year ago. Its loss per diluted share was $0.95 over the FY.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The retailer closed three stores in Q1 FY23, ending the quarter with 343 stores.
Kirkland’s Home interim CEO Ann Joyce said: “During the first quarter, we placed renewed emphasis on our overall value proposition and better aligned the brand voice through improved marketing, promotional strategy and seasonally relevant décor.
“While a challenging consumer spending environment continued to affect traffic during the quarter, we achieved positive comparable sales for the month of April as customers responded well to our promotions and omnichannel experience.
“Our merchandise margins began to expand during the quarter as the benefits of lower freight and product costs started to flow through our results and we expect this to become more meaningful in the upcoming quarters.”