Gordmans Q4 Net Drops 22.2 Percent; Fiscal Year Net Off 6.5 Percent
March 26, 2013,
OMAHA, Neb.-Rising expenses cut into Gordmans' bottom line in the fourth quarter and fiscal year ending on Feb. 2. Net income for the quarter fell 22.2 percent to $7.9 million, while for the year, net income totaled $23.5 million, down 6.5 percent.
The cost increases were reflected in both the retailer's gross margin and selling, general and administrative expenses. Gross margin lost 142 basis points in the quarter, to 38.7 percent. SG&A increased 13 percent in dollars and 105 basis points as a percentage of sales, to 32.4 percent.
The upsurge in expenses offset a net sales gain, in the quarter, of 9.4 percent to $202.5 million. Same-store sales in the quarter decreased 4.1 percent. For the fiscal year, net sales climbed 10.2 percent, with a 0.7 percent drop in same-store sales.
Jeff Gordman, Gordmans' president and CEO, said, "While we are disappointed with our recent results, including a slow start to fiscal 2013, we believe that the strategic initiatives that we have put in place...will produce improved comparable sales as the year progresses."