Kirkland's loses money in 3Q; CEO taking leave
NASHVILLE, Tenn. (AP) — Kirkland's lost money in its fiscal third quarter as sales weakened a bit. The home decor company also said Tuesday that President and CEO Robert Alderson is taking a temporary medical leave of absence.
For the period ended Oct. 27, Kirkland's Inc. lost $416,000, or 2 cents per share. That compares with a profit of $1.2 million, or 6 cents per share, a year earlier.
Analysts predicted a bigger loss of 5 cents per share, according to a FactSet poll.
Revenue edged down slightly to $96.7 million from $97.1 million. Wall Street forecast revenue of $98.2 million.
Revenue at stores open at least a year dropped 4.7 percent. The results include online sales. This figure is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
For the fourth quarter, Kirkland's anticipates earnings of 71 cents to 76 cents per share. Revenue is expected in a range of $160 million to $163 million.
The company said Tuesday that it foresees fiscal 2012 earnings of 67 cents to 72 cents per share on revenue between $$445.5 million and $448.5 million.
Analysts expect fourth-quarter earnings of 83 cents per share on revenue of $165.3 million and full-year earnings of 76 cents per share on revenue of $452.3 million.
Kirkland's also announced that Alderson's temporary medical leave will begin on Monday. Senior Vice President and Chief Financial Officer Mike Madden will serve as acting president and CEO.
The Nashville, Tenn., company said that it fully expects Alderson to resume his responsibilities after taking off six to eight weeks for a non-emergency medical procedure.
Kirkland's currently runs 313 stores in 33 states. Its stock added 3 cents to $9.01 in afternoon trading.