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Q4 Rough On Gordmans

Gordmans Stores, Inc. announced that fourth quarter comparable sales through January 12 declined 4.6%. The company said that, based on the sales performance, it now expects net revenue for the fourth quarter, a 14-week quarter versus the comparable 13-week period of fiscal 2011, to be approximately $203 million versus $185 million in the prior year period and previous guidance of $213 to $215 million.

In addition, Gordmans expects diluted earnings per share to be in the range of 35 cents to 37 cents compared with 53 cents in the year-prior period and versus previous guidance of 58 cents to 61 cents.

Jeff Gordman, the retailer’s president and CEO, stated, “Our comparable store sales declined due in part to our seasonal businesses, which suffered disproportionately greater sales decreases, as well as merchandise offerings in several categories that lacked sufficient breadth of selection. We are aggressively managing inventories to ensure that we are well positioned as we transition into the first quarter of fiscal 2013, which will negatively impact our margins for the fourth quarter.”

Gordman noted that comps “for January month to date are up mid-single digits. In addition, we are encouraged by the performance of our new stores opened in 2008 through 2012, as in the aggregate they continue to perform above our new store model in both sales and operating profit. We opened nine new stores in fiscal 2012, a 50% increase in new locations from the previous year and the most stores that we have opened since 2005, and entered four new markets: Salt Lake City, Ogden, UT, Boise, ID, and Indianapolis. Our expansion plans for 2013 include 10 new stores in six new and two existing markets. Including these locations, we will have increased our store base by nearly 40% over a three-year period to 93 stores from 68 locations at the end of fiscal 2010.”