Kirkland's sees YoY improvement in merchandise and gross profit margins Expects a lower markdown rate, lower inbound freight costs, and sales leverage. Operating expenses are expected to increase on a dollar basis due to the increase in stores and incremental investments in corporate headcount to support our growth initiatives. The company is also anticipating approximately 4c per diluted share in additional costs associated with its second half lease expiration and transition to replacement corporate headquarters space.
Kirkland's promotes W. Michael Madden President and COO effective immediately Madden was serving as the company's Senior VP and CFO. The company expects Madden to assume the role of CEO after a period of orderly transition. Madden will remain the company’s principal financial officer pursuant to S.E.C requirements.