Gordmans lowers outlook

HTT Staff -- Home Textiles Today, 1/15/2013 12:00:50 PM

Omaha, Neb. - Gordmans Stores has adjusted its fourth quarter guidance after comps declined 4.6%.
The 83-unit apparel and home retailer now expects revenue for the fourth quarter ended Jan. 12 to be about $203 million, up 9.7% from last year's fourth quarter. Previously, Gordmans had projected fourth quarter revenue in the range of $213 million to $215 million.
Fourth quarter earnings per share are expected to range from 35 cents to 37 cents, down from 53 cents in the year-ago quarter. Gordmans had most recently expected EPS of 58 cents to 61 cents.
President and ceo Jeff Gordman attributed the comp decline to slack season business as well as a lack of broader selection in other, unnamed merchandise categories.
"We are aggressively managing inventories to ensure that we are well positioned as we transition into the first quarter of fiscal 2013, which will negatively impact our margins for the fourth quarter," he said.
Same-store sales for January month to date are up mid-single digits, and new stores opened from 2008 through 2012 are outperforming plan in both sales and operating profit, he added.
"We opened nine new stores in fiscal 2012, a 50% increase in new locations from the previous year and the most stores that we have opened since 2005, and entered four new markets: Salt Lake City; Ogden, UT; Boise, ID; and Indianapolis," said Gordman.
In 2013 the company plans to open 10 new stores in six new and two existing markets. "Including these locations, we will have increased our store base by nearly 40% over a three year period to 93 stores from 68 locations at the end of fiscal 2010," he said.