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VOL. 37 | NO. 10 | Friday, March 8, 2013
Kirkland's CEO to retire, 4Q results top Street
NASHVILLE (AP) - Kirkland's CEO Robert Alderson plans to retire next February after almost three decades with the home decor company.
The announcement Thursday came as the company reported that its net income fell 6 percent as operating expenses rose. The results beat Wall Street estimates but its first-quarter outlook was below what analysts had expected.
Its shares slipped 5 cents to $11.45 in morning trading. They have traded in a 52-week range of $8.26 to $17.42.
The 66-year-old Alderson, who also is president, has spent 27 years with the company.
In November Kirkland's Inc. announced that Alderson was taking a temporary medical leave of absence for six to eight weeks for a non-emergency medical procedure. Mike Madden, its senior vice president and chief financial officer, served as acting president and CEO during that time.
The Nashville-based company operates 317 stores in 35 states, selling items ranging from mirrors, lamps and candles to garden accessories and floral products.
For the period ended Feb. 2, it earned $14.3 million, or 82 cents per share, compared with $15.2 million, or 78 cents per share, a year earlier. The company had fewer shares outstanding in the current quarter.
Analysts polled by FactSet expected earnings of 74 cents per share.
Revenue climbed 9 percent to $162.9 million from $149.1 million, helped by an extra week in the period. Wall Street was looking for revenue of $162.6 million.
Revenue at stores open at least a year dropped 2.6 percent. Kirkland's said that the results include its online sales.
The metric is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.
Operating expenses increased to $39.2 million from $36.6 million.
Full-year net income declined 28 percent to $13.8 million, or 77 cents per share, from $19.1 million, or 95 cents per share, in the pri or year. Annual revenue increased 4 percent to $448.4 million from $430.3 million.
Revenue at stores open at least a year fell 3 percent.
Kirkland's anticipates fiscal 2013 earnings between 70 cents and 85 cents per share. Revenue is expected to rise about 5 percent to 7 percent from 2012's $448.4 million, implying $470.6 million to $479.6 million.
Analysts predict earnings of 85 cents per share on revenue of $476.2 million.
The company foresees first-quarter earnings of 2 cents to 5 cents per share on revenue in a range of $99 million to $101 million. Wall Street expects earnings of 9 cents per share on revenue of $103.2 million.