Gordmans Stores, for the second quarter ended August 1, posted a net loss of $3 million, or 16 cents per diluted share, versus $3.2 million, or 16 cents per diluted share, in the year-earlier period. Net sales were $143.4 million versus $141 million in last year’s quarter while comparable store sales fell by 1.7%.
Diluted loss per share included a six cent charge related to debt extinguishment. Without the charge, loss per diluted share came in at 10 cents.
An analyst average estimate from Zacks Investment Research called for a loss per share of 12 cents.
Gordman’s attributed one point of the comp decline to a shift in local sales tax holidays from July to August.
“We are pleased with the continued improvement in our bottom line performance,” said Andy Hall, Gordman’s president and CEO. “The second quarter net loss, excluding costs related to the extinguishment of high rate term debt, improved 43% and was driven by higher sales and better gross margin performance. It was good to see that our comp store sales trend improvement continued in the second quarter. Second quarter comparable store sales on an owned plus licensed basis decreased 1.6% including an expected 1% detriment due to the shift in the sales tax holiday from July to August. Heading into the back half of the year, we are pleased with our inventory content as we accelerated back-to-school receipts versus last year to be better positioned to capture August sales.”
He added, “We are excited about the recent announcements that strengthen our company going forward. First, in June, we refinanced high rate senior debt with a new $30 million term loan that carries a 225 basis point lower interest rate. Also, we launched our e-commerce site. Now guests from across the country may access Gordmans extraordinary value proposition anytime, anywhere.”
Gordmans currently operates 101 stores in 22 states.