Home lags at Gordman's in Q2
Chain continues ramping up store count
HTT Staff -- Home Textiles Today, 8/31/2012 12:33:24 PM
Omaha, Neb. - Home's low single-digit comp decline hindered Gordman's total comp gains in the second quarter. Still, sales and net income both posted significant growth rates in the 13-week period.
Net income in the quarter, ended July 28, jumped 20.7% to $3.5 million, or 18 cents per share compared to a year ago. Sales also took a leap, increasing 9.6% to $128.2 million. Comps were up a slight 0.1%.
For the first half of the year, net income was up 13.5% to $11.6 million, or 60 cents per share. Sales rose 11.7% to $262.2 million. Comps were up 2.5%.
Top of mind for Gordman's is store expansion. The family-owned-and-operated company last year embarked on an initiative to grow its store base and reach new markets, and is keen on that effort through 2013.
During the second quarter, Gofman's opened three stores and entered one new market, Indianapolis. It will open two more stores next month in the Denver market for a total of nine new stores for the year representing a 12% expansion of the store base.
Gordman's expects to end the year with 83 stores in 18 states - a 50% increase in net unit growth over 2011.
"We've made very good progress with respect to our store expansion plan, and in fiscal 2013 we remain on track to open at least nine locations," said Jeff Gordman, president and ceo. "Including the nine new stores in 2013, we will increase our store base by 35% over the three-year period from the beginning of 2011."
Looking ahead, the company expects a modest single digit comparable store sales increase for the full fiscal year
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