Gordmans' Net Falls for FY, Q4; CEO Gordman to Retire
OMAHA, Neb.-Gordmans posted drops of 66 percent and 65.6 percent in its fiscal-year and fourth-quarter net income, respectively. The retailer has also announced that its president and CEO, Jeff Gordman, is retiring.
Gordman has also resigned from the company's board of directors. T. Scott King, Gordmans' chairman, will serve as interim CEO while a search for Gordman's permanent successor takes place.
Net income for the fourth quarter ending on Feb. 1 totaled $2.7 million, bringing the bottom line for the year to $8 million. Net sales in the quarter were down 1.2 percent to $200 million, and for the year picked up 2 percent to finish at $619.6 million. Same-store sales in the quarter fell 7.4 percent and were up 3 percent for the year.
Mike James, chief financial officer, said fourth-quarter sales felt the impact of six fewer shopping days between Thanksgiving and Christmas, plus the severe weather in Gordman's markets in December and January.
Gross margin in the quarter was down 39 basis points to 38.3 percent. Selling, general and administrative expenses increased 8.7 percent in dollars and 326 basis points as a percentage of sales, to 35.6 percent.
Gordman, great-grandson of Gordmans' founder, Dan Gordman, joined the company in 1990. He has been president and CEO since 1996. During his leadership, Gordmans expanded from 32 stores and annual sales of slightly more than $200 million to its current count of 95 stores in 55 markets and 20 states.