For the first quarter ended May 4, Gordmans Stores, Inc. posted net income of $3.2 million, or 17 cents per diluted share, versus $8.1 million, or 41 cents per diluted share, in the year-prior period. Comparable store sales for the first quarter decreased 10.5%, according to the company.
Gordmans net sales decreased 1.9% to $131.4 million versus the 13 weeks ended April 28, 2012. Income from operations was $5.3 million compared with $13 million in the quarter a year earlier.
“The combination of the 10.5% comparable store sales decline we experienced in the first quarter and a lower gross profit margin resulting from additional markdowns to reduce inventory levels negatively impacted our first quarter operating results,” said the company’s president and CEO Jeff Gordman, in comments on the quarter’s financial results. “However, our second quarter is off to a solid start, and we believe that the growth initiatives that we have put in place will produce improved comparable store sales as the year progresses. We are looking forward to opening four stores in advance of the back-to-school selling season in Albuquerque, Minot, ND, Milwaukee and Louisville, KY, all new markets for our company.”
The company noted that three new stores bowed in existing markets during the first quarter as part of its expansion strategy. Gordmans operates 86 stores across 18 states, the company related.