Gordmans Stores saw comps decrease and posted a net loss in a challenging first quarter.
Net sales for the first quarter ended April 30, 2016, decreased 2.6% to $142.2 million from $145.9 million for the previous first quarter. Comparable store sales decreased 5%. The net loss for the first quarter was $1.6 million, or $0.08 per diluted share, compared to net income of $0.4 million, or $0.02 per diluted share, in the first quarter of fiscal 2015.
“We experienced challenging store traffic consistent with general retail trends during the week leading up to Easter through the end of the first quarter. Despite the pressure on sales, we were able to deliver a loss per share in-line with our guidance range due to proactive management of expenses. While we are disappointed in our overall first quarter performance, we believe we are making the right decisions to protect the bottom line in the face of current headwinds while positioning the company for longer term profitability,” said Andy Hall, president and CEO, Gordmans.
Hall added, “During the first quarter we commenced a comprehensive expense review with the assistance of a retail industry leading consulting firm. We have identified significant potential cost saving opportunities throughout the organization. We will begin implementing these initiatives in the second quarter and expect to start realizing savings in the fall season. In addition to our expense review, we are focusing on merchandising improvements, driving guest traffic and e-commerce strategies.”
Gordmans operates 103 stores in 22 states.