OMAHA, NE--(Marketwired - May 23, 2013) - Gordmans Stores, Inc. (
First Quarter Highlights
- Three new stores were opened in existing markets in the first quarter as part of our expansion strategy.
- Diluted earnings per share were $0.17, which exceeded guidance of $0.11 - $0.13.
"The combination of the 10.5% comparable store sales decline we experienced in the first quarter and a lower gross profit margin resulting from additional markdowns to reduce inventory levels negatively impacted our first quarter operating results," commented Jeff Gordman, President and Chief Executive Officer. "However, our second quarter is off to a solid start and we believe that the growth initiatives that we have put in place will produce improved comparable store sales as the year progresses. We are looking forward to opening four stores in advance of the back-to-school selling season in Albuquerque, Minot, ND, Milwaukee and Louisville, KY, all new markets for our Company."
First Quarter Financial Results Net sales for the thirteen weeks ended May 4, 2013 decreased 1.9% to $131.4 million from $133.9 million for the thirteen weeks ended April 28, 2012. Comparable store sales for the first quarter of fiscal 2013 decreased by 10.5% versus a 4.7% comparable store sales increase in the first quarter of fiscal 2012. Gross profit, which includes license fees, decreased by 7.1% to $59.0 million, or 44.9% of net sales, from $63.5 million, or 47.4% of net sales, in the first quarter of fiscal 2012. Selling, general and administrative costs were $53.7 million, or 40.8% of net sales, compared to $50.5 million, or 37.7% of net sales, in the first quarter of fiscal 2012. Net income for the first quarter of fiscal 2013 was $3.2 million, or $0.17 per diluted share, compared to net income of $8.1 million, or $0.41 per diluted share, in the first quarter of fiscal 2012.
Outlook For the second quarter of fiscal year 2013 ending August 3, 2013, the Company currently expects net sales to be between $135 and $137 million, which reflect a low single digit comparable store sales decrease. The Company also expects continued pressure on gross profit margins related to inventory recalibration efforts as well as additional selling, general and administrative expenses related to advertising related to our loyalty program, consulting related to store productivity improvements, depreciation and pre-opening compared to the prior year, and therefore projects diluted earnings per share in the range of $0.01 to $0.03 (using a weighted average diluted share count of approximately 19.4 million).
Conference Call Information A conference call to discuss first quarter financial results is scheduled for today, May 23, 2013 at 11:00 a.m. Eastern Time. The conference call will be webcast live at http://investor.gordmans.com/events.cfm . A replay of this call will be available within two hours of the conclusion of the call and will remain on the website for one year.
About Gordmans Stores, Inc.
Gordmans (
Safe Harbor Statement Certain statements in this release are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "guidance," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected net sales, net income, comparable store sales, diluted earnings per share, and store expansion, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are (1) changes in consumer spending and general economic conditions; (2) our ability to identify and respond to new and changing fashion trends, guest preferences and other related factors; (3) fluctuations in our sales and profitability on a seasonal basis; (4) intense competition from other retailers; (5) our ability to maintain or improve levels of comparable store sales; and (6) our successful implementation of advertising, marketing and promotional strategies .
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including other risks, relevant factors and uncertainties identified in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended February 2, 2013, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
| GORDMANS STORES, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars in Thousands) | ||||||||
| May 4, 2013 | February 2, 2013 | |||||||
| ASSETS | (Unaudited) | (Unaudited) | ||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 49,395 | $ | 40,824 | ||||
| Accounts receivable | 1,904 | 2,049 | ||||||
| Landlord receivable | 4,837 | 8,787 | ||||||
| Income taxes receivable | -- | 1,300 | ||||||
| Merchandise inventories | 89,418 | 78,006 | ||||||
| Deferred income taxes | 2,707 | 2,617 | ||||||
| Prepaid expenses and other current assets | 8,158 | 6,552 | ||||||
| Total current assets | 156,419 | 140,135 | ||||||
| PROPERTY AND EQUIPMENT, net | 53,835 | 45,966 | ||||||
| INTANGIBLE ASSETS, net | 1,970 | 1,992 | ||||||
| OTHER ASSETS, net | 3,168 | 3,033 | ||||||
| TOTAL ASSETS | $ | 215,392 | $ | 191,126 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 49,389 | $ | 34,211 | ||||
| Income taxes payable | 484 | -- | ||||||
| Accrued expenses | 26,498 | 22,789 | ||||||
| Current portion of capital lease obligations | 76 | 189 | ||||||
| Total current liabilities | 76,447 | 57,189 | ||||||
| NONCURRENT LIABILITIES: | ||||||||
| Deferred rent | 23,126 | 21,997 | ||||||
| Deferred income taxes | 9,413 | 9,236 | ||||||
| Other liabilities | 300 | 316 | ||||||
| Total noncurrent liabilities | 32,839 | 31,549 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Preferred stock | -- | -- | ||||||
| Common stock | 19 | 19 | ||||||
| Additional paid-in capital | 52,931 | 52,461 | ||||||
| Retained earnings | 53,156 | 49,908 | ||||||
| Total stockholders' equity | 106,106 | 102,388 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 215,392 | $ | 191,126 | ||||
| GORDMANS STORES, INC. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (Dollars in Thousands Except Share Data) | |||||||||
| 13 Weeks Ended May 4, 2013 (Unaudited) | 13 Weeks Ended April 28, 2012 (Unaudited) | ||||||||
| Net sales | $ | 131,434 | $ | 133,922 | |||||
| License fees from leased departments | 1,921 | 1,937 | |||||||
| Cost of sales | (74,364 | ) | (72,368 | ) | |||||
| Gross profit | 58,991 | 63,491 | |||||||
| Selling, general and administrative expenses | (53,673 | ) | (50,486 | ) | |||||
| Income from operations | 5,318 | 13,005 | |||||||
| Interest expense, net | (121 | ) | (125 | ) | |||||
| Income before taxes | 5,197 | 12,880 | |||||||
| Income tax expense | (1,949 | ) | (4,830 | ) | |||||
| Net income | $ | 3,248 | $ | 8,050 | |||||
| Basic earnings per share | $ | 0.17 | $ | 0.42 | |||||
| Diluted earnings per share | $ | 0.17 | $ | 0.41 | |||||
| Basic weighted average shares outstanding | 19,242,790 | 19,095,223 | |||||||
| Diluted weighted average shares outstanding | 19,424,882 | 19,424,699 | |||||||
Company Contact : Mike James Chief Financial Officer (402) 691-4126 Investor Relations : ICR, Inc. Brendon Frey (203) 682-8200
