Gordmans Profit Dives 72.5 Percent in Q3
OMAHA, Neb.-Jumps in expenses slashed into Gordmans' bottom line in its fiscal third quarter, to the tune of a 72.5 percent decrease to $1.1 million.
Selling, general and administrative expenses were up 11.8 percent in dollars and 229 basis points as a percentage of sales, to 42.7 percent. Gross margin was down 62 basis points to 44.3 percent. Interest expense skyrocketed by 656 percent, the result of additional interest associated with the retailer's term loan, entered into in August to fund a special cash dividend paid out in September.
All of these items easily offset a gain of 5.8 percent in net sales, which totaled $151.3 million. This included a drop of 6.1 percent in same-store sales.
For the fourth quarter, Gordmans said it is projecting a mid-single-digit decline in same-store sales. The company also said it expects continued pressure on gross margin and increased SG&A related to depreciation.