After a disappointing fourth quarter, Gordmans Stores, Inc., announced that Jeff Gordman, president and CEO, has resigned his positions and is retiring from the company. T. Scott King, current chairman of the board, will serve as interim CEO during a search for a permanent successor to Gordman.
King will take an unpaid leave of absence from his position as a senior managing director at Sun Capital Partners for that period he serves with Gordmans. King was CEO of Waterlink, a manufacturer of water treatment systems, before joining Sun Capital, and, before that, he served as president of the Sherwin Williams Co. Consumer Brands division.
According to the company, Gordmans net sales for the 13 weeks ended February 1 were $200 million versus $202.5 million for the fourteen weeks ended February 2, 2013. On a comparable 13-week basis, net sales increased 2%. Net income for the fourth quarter of fiscal 2013 was $2.7 million, or 14 cents per diluted share, which includes the interest expense of approximately three cents per diluted share associated with the term loan used to partially fund a special cash dividend. In the fiscal 2012 quarter, net income was $7.9 million, or 41 cents per diluted share, the company maintained.
Net sales for the 52-week fiscal year were $619.6 million versus $607.7 million for the 53-week period ended February 2, 2013, Gordmans reported. On a comparable 52-week basis, net sales increased 3%. Net income for fiscal 2013 was $8 million, or 41 cents per diluted share, which includes the interest expense of approximately six cents per diluted share associated with the term loan. Net income in fiscal 2012 was $23.5 million, or $1.21 per diluted share, the company stated.
Gordmans noted that it plans to open seven new stores in 2014 and close two to three existing stores. The company plans on expanding into five new markets and two new states with locations in Schererville, IL, Muskegon, MI, Grand Rapids, MI, Saginaw, MI, and Tyler, TX, as well as boosting presence in a pair of existing markets with stores in Boise, ID, and St. Louis. At the end of 2014, Gordmans will have expanded to 97 stores, the company pointed out.