Gordmans Pushes Fourth-Quarter Net Up 36 Percent
Posted on March 18, 2011 by
OMAHA, Neb.-A strong increase in same-store sales and improved gross margin helped Gordmans to a 36 percent rise in net income in its fiscal fourth quarter, to $8.4 million.
The six percent gain in comparable-stores sales was part of an overall 9.3 percent pickup in net sales to $168.4 million. Gross margin in the quarter, which ended on Jan. 29, rose 83 basis points to 39.8 percent. Along with citing both the same-store sales and margin growth, Jeff Gordman, president and CEO, noted that Gordmans' fourth quarter was driven by progress the retailer has made on merchandising, marketing and inventory-management initiatives.
Gordmans also kept expenses in check in the quarter. Selling, general and administrative expenses increased 6.5 percent in dollars but fell 85 basis points as a percentage of sales, to 31.7 percent.
For its fiscal year, Gordmans reported a 1.7 percent drop in net income to $15.6 million, and a 13 percent increase in net sales to $517 million. Comparable-store sales rose 8.4 percent during the year.