Gordmans' Q3 a troubled time
Furniture Today Staff -- Furniture Today, December 3, 2013
Omaha - Gordmans Stores Inc.'s third quarter sales results were in line with guidance, but its comps fell short, hurt in part by a competitive Black Friday event and a shorter holiday season versus last year.
Net sales for the third quarter, ended Nov. 2, increased 5.8% to $151.3 million, while comparable store sales decreased 6.1%. Home and apparel comps were among the weak areas, declining by mid single digits, noted president and ceo Jeff Gordman.
On a comparable calendar basis, comparable store sales declined by 4.5%.
Net income dove to $1.1 million, or $0.06 per share, versus $4.0 million, or $0.21 per diluted share, in the third quarter of fiscal 2012.
"While comparable store sales for the third quarter were below expectations, trends improved in October, with comparable store sales even with that of a year ago," Gordman said. "Moreover, we were aggressive with our markdown cadence during the quarter in our ongoing efforts to position our inventory levels ahead of the critical holiday selling season."
Gordmans opened 10 new stores in six new and two existing markets, including one new state, over the past nine months.
Year to date, net sales increased 3.5% to $419.5 million, while comps declined by 6.5% compared to a 1.1% increase a year ago. Net income fell a steep 66% to $5.3 million, or $0.27 per diluted share.
Gordmans' outlook for the fourth quarter, which ends February 1, calls for net sales of $204 million and $206 million, with a mid-single digit comparable store sales decrease compared to the year-ago quarter.
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