A decrease in store count and a decline in comparable store sales were key factors in soft fourth quarter sales at Kitchen Collection.
Total sales for the quarter ended December 31, 2016, were $54.4 million, down from sales of $56.5 million in the same quarter in 2015. Quarterly net income was $4.2 million versus net income of $3.9 million in 2015.
Company officials added that the decrease in comparable store sales was mainly attributable to fewer customer visits, which also resulted in a decline in the number of store transactions, and was partially offset by improvements in the average sales transaction value.
For the year ended December 31, Kitchen Collection reported revenues of $144.4 million compared with revenue of $151 million for the prior year. The company reported a net loss of $0.4 million, which was flat year-over-year.
Kitchen Collection said it would continue to aggressively manage and reduce its store portfolio and will remain focused on a smaller core group of profitable Kitchen Collection outlet stores.
The company closed 17 stores early in the first quarter of 2017 and plans to open a limited number of stores throughout the remainder of the year in locations that are expected to generate “acceptable profitability.”
As a result of these actions, Kitchen Collection anticipates revenues to decline modestly in 2017 compared with 2016, with full-year 2017 results comparable to 2016, provided customer visits are at expected levels.
