Gordmans 4Q earnings fall

Gordmans Stores profit falls in 4Q, says 2013 off to slow start

Associated Press

OMAHA, Neb. (AP) -- Gordmans Stores Inc.'s fourth-quarter profit fell 22 percent as higher costs offset better sales for the retailer.

The Omaha, Neb., company also said that the current fiscal year is off to a slow start, which sent its shares down 5 percent in after-hours trading Monday.

Gordmans earned $7.9 million, or 41 cents per share, for the quarter that ended Feb, 2. That compared with $10.2 million, or 53 cents per share, in the fourth quarter of the prior year. Total revenue increased 9 percent to $202.5 million.

Analysts polled by FactSet expected 37 cents per share on revenue of $202.8 million.

The company warned investors in January that it may be facing some difficulties as it lowered its outlook for the period, citing some unpopular merchandise and a seasonal drop in business.

President and CEO Jeff Gordman said Monday that the quarter's revenue gains were driven primarily by recently opened stores. Sales at stores open at least a year fell 4.1 percent. That is a key indicator of financial performance that strips away the impact of recently opened or closed stores.

The company was also weighed down by an increase in its selling, general and administrative expenses to $65.6 million from $58 million a year ago.

Gordman said the company was disappointed with its results, including a slow start to 2013. But it believes some recent changes, including its leadership team, will help drive sales gains in 2013. Gordmans named a new executive vice president and chief merchandising officer in February.

Gordmans operates 86 stores in 18 states.

Shares fell 52 cents, or 3.7 percent, to $13.70 in after-hours trading.

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