Gordmans Stores, Inc. has announced results for its fourth quarter and fiscal year ended January 31, 2015.
In the fourth quarter, net sales increased 1.9% to $203.9 million compared to $200 million in last year’s fourth quarter. Net income for the fourth quarter of fiscal 2014 was $2.3 million, or $0.12 per diluted share, down from a net income of $2.7 million, or $0.14 per diluted share, in the fourth quarter of fiscal 2013. Comparable store sales decreased by 2.7%.
In the fiscal year, net sales increased 2.4% to $634.6 million compared to $619.6 million in the previous fiscal year. Comparable store sales for fiscal year 2014 decreased 4.8%. The company reported a net loss for fiscal year 2014 of $3.5 million, or a loss of $0.18 per diluted share, compared to net income of $8 million, or $0.41 per diluted share, in fiscal year 2013.
“Our fourth quarter earnings per share exceeded our guidance range due to sales near the high end of guidance, combined with favorable operating expense performance,” said Andy Hall, president and CEO, Gordmans. “Net sales for the fourth quarter increased 1.9% while comparable store sales decreased 2.7%, which represents a significant improvement from our comparable store sales trend entering the fourth quarter. We ended the year with inventories in great shape from a quantitative and qualitative perspective. Our less than 60 day aged inventory was 14 percentage points better than last year and comparable store inventory was down 10% to last year. In addition, we significantly improved our financial health by increasing our free cash flow by $30 million, decreasing working capital by 56% and reducing outstanding debt by 21%.”
Hall continued, “While we are pleased with our fourth quarter progress, we still have significant improvement to make to return the company to consistent positive comparable store sales growth and profitability. We continue to work on a number of strategic initiatives, including the mid-year launch of e-commerce, modifying our marketing focus to leverage our guest loyalty program, optimizing our supply chain and continuing to expand our store base.”
In 2014, Gordmans opened six new stores, entered two new states, Michigan and Texas, and relocated an existing store. The company also closed two existing stores and ended the year operating 97 stores. In 2015, the company plans to open six new stores, two of which opened in Cleveland, OH, earlier this month. The company also plans to close one store later this year when the lease term expires.