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Home Steadier As Gordmans Stumbles In Q4

Tuesday March 26th, 2013 - 11:18AM


For the 53-week fiscal year ended February 2, Gordmans Stores, Inc. posted net income of $23.5 million, or $1.21 per diluted share, versus $25.2 million, or $1.30 per diluted share, in the 52-week fiscal 2011. Comparable store sales for the 52-week period ended January 26 decreased by 0.7%.

Net sales for the fiscal year increased 10.2% to $607.7 million, boosted by the contribution from nine new stores, the company pointed out. Income from operations slid to $38.1 million from $40.9 million.

For the 14-week fourth quarter, net income was $7.9 million, or 41 cents per diluted share, versus $10.2 million, or 53 cents per diluted share, in last year’s 13-week period.  Comps for the 13-week period ended January 26 fell by 4.1%. Net sales for the quarter increased 9.4% to $202.5 million year over year. Income from operations slipped to $12.8 million from $16.3 million in the 2011 quarter.

A published analyst consensus estimate from Thomson Reuters was for fourth quarter diluted earnings per share of 37 cents.

In a conference call, Gordmans related that home was stronger than other categories, posting a low single-digit comp decrease in the fourth quarter. Among the segments that produced comp gains, novelty décor, lighting, candles, holiday home, furniture and home gift came up positive.

"Our fourth quarter sales performance was driven primarily by contributions from the nine stores opened in fiscal 2012, partially offset by a comparable store sales decline of 4%," commented Jeff Gordman, president and CEO. "While we are disappointed with our recent results, including a slow start to fiscal 2013, we believe that the strategic initiatives that we have put in place, in concert with the change in our senior leadership team, will produce improved comparable sales as the year progresses. In addition, we will continue our expansion strategy with the opening of 10 new stores in a combination of new and existing markets."