: Kirkland’s says holiday same-store sales fell more than expected

Home decor retailer Kirkland’s Inc. KIRK said Wednesday that same-store sales fell 5.5% in its fiscal fourth quarter through December, a bigger-than-expected decline that has impacted its balance sheet. The company now expects to end the fiscal year with $15 million to $17 million in net borrowings and with inventor closer to the high end of its $70 million to $80 million range. “While sales trends began to improve in November, a continued volatile consumer environment in December impacted customer traffic following our Black Friday promotional events,” said Steve “Woody” Woodward, president and CEO of Kirkland’s Home. “We accelerated our promotional activity in December to generate sales momentum as we closed out the holiday season, but we were unable to overcome the impact from the decline in traffic and the effect on our merchandise mix of an extended period of significant inventory reduction.” Despite the disappointing numbers, the company is confident its business will stabilize in fiscal 2023. The stock has fallen 76% in the last 12 months, while the S&P 500 SPX has fallen 17%.

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