Gordmans outpaces goal, continues expansion
HTT Staff -- Home Textiles Today, 11/29/2012 11:39:48 AM
Omaha, Neb. - While Gordmans' earnings per share during the third quarter exceeded expectations, the comp on home fashions declined in the low-single-digit range.
Net income for the quarter ended Oct. 27 fell 16% to $ 3.995 million, or 21 cents per share. Sales rose 8.7% to $143.1 million, with comps down 1.4%.
Although the average transaction was higher during the quarter, traffic was down at the regional apparel and home retailer.
For the nine month period, net income rose 4.2% to $15.6 million, or 80 cents per share. Sales climbed 10.6% to $405.2 million, and comps increased by 1.1%.
Gordmans opened nine new stores in the first three quarters of the fiscal year, entering four new markets. Executives said they plan to keep a similar opening pace in the next two years.
"We entered four new markets: Salt Lake City and Ogden, Utah; Boise, Id.; and Indianapolis, Ind., as well as opened additional stores in Minneapolis and Denver," said Jeff Gordman, president and ceo, during the company's quarterly conference call last week.
The promotional department store chain, which currently operates 83 stores in 18 states, will expand into three new states next year. The company plans to open at least nine new stores in 2013, one-third of them in existing markets. For 2014, the goal is 10 net new stores, said Gordman.
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