Gordmans Q2 Net Falls Sharply on Rising Costs
August 28, 2013,
OMAHA, Neb.-Increased expenses offset a gain in sales to reduce Gordmans' second-quarter net income by 73.7 percent, to $934,000.
The cost picture for the quarter, which ended on Aug. 3, included a drop in gross margin of 247 basis points, to 43.3 percent, as the retailer continued to experience the pressure on margins it felt in the first quarter. Selling, general and administrative expenses rose 8.9 percent in dollars and 88 basis points as a percentage of sales, to 42.1 percent.
Net sales increased 6.7 percent to $136.8 million, but same-store sales were down 2.6 percent. Speaking of the comparable-store decline, Jeff Gordman, Gordmans' president and CEO, said it was what the company expected and represented "a meaningful improvement from the trend we experienced in the first quarter of 2013."
The retailer said it expects third-quarter sales to total between $149 million and $151 million, reflecting an improvement in same-store sales in the low single digits.