The directors of Kirkland's have tapped the home goods retailer's CFO to succeed retiring CEO Robert Alderson and promoted two other executives. The company also announced second-quarter earnings that came in at the low end of its guidance.
Mike Madden joined Kirkland's in July 2000 as director of finance and has been its CFO since May 2006. The Kirkland's board has named him president and chief operating officer, effective immediately. In a statement, the company said Madden will take on the CEO title "after a period of orderly transition," but did not specify a timeframe. Alderson announced in the spring of last year that he planned to step down from the company that runs 328 stores in 35 states.
"Kirkland's deep and experienced senior leadership team has been integral in restoring our stability and profitability as well as rebuilding shareholder value," Alderson said. "I'm pleased that the Board has recognized Mike’s many contributions to our success and his outstanding leadership potential. I've worked closely with Mike for the last eight years as CFO, and he filled in admirably during my illness over a year ago. His experience, knowledge of Kirkland's culture, and vision for our future make him the best person to lead Kirkland's through our next phase of growth."
Kirkland's officials also announced that Senior Vice President of Stores and Human Resources Michelle Graul has been promoted to executive VP of stores and merchandising and that VP of Finance Adam Holland has been named chief accounting officer. Both appointments are effective immediately.
Separately, Alderson and his team also announced Kirkland's posted a second-quarter net loss of $1.1 million, double its year-ago loss. Per diluted share, the loss was 6 cents, at the bottom of the guidance range it gave in May. Revenues climbed to more than $103 million and same-store sales rose 3.6 percent but higher operating expenses, a slow June and delays in opening some new stores hurt the bottom line. Going forward, the Kirkland's leadership team expects the company to earn between 87 cents and 97 cents per diluted share this year, down from their previous range of 90 cents to $1.
Shares of Kirkland's (Ticker: KIRK) were up slightly to $19 in pre-market trading Thursday. Year to date, they've fallen about 20 percent.
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