Gordmans Net Slashed by 59.7 Percent in Q1
OMAHA, Neb.-Declining sales and margins, along with rising expenses, led to a 59.7 percent fall in first-quarter net income, to $3.2 million, for Gordmans.
Net sales were down 1.9 percent to $131.4 million, including a drop of 10.5 percent in same-store sales, in the quarter which ended on May 4. Gross margin decreased 253 basis points to 44.9 percent. Jeff Gordman, Gordmans' president and CEO, attributed the weak quarter to the fall in both same-store sales and in margin, which he said resulted from additional markdowns to reduce inventory levels.
Also cutting into the bottom line, selling, general and administrative expenses rose 6.3 percent in dollars and 314 basis points as a percentage of sales, to 40.8 percent.
Gordman said the retailer's 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." The company expects second-quarter net sales to finish between $135 million and $137 million, reflecting a same-store sales increase in the low single digits.