Gordmans Posts Loss for Fiscal Year
March 20, 2015,
OMAHA, Neb.-Rising expenses offset a modest sales gain to produce a $3.5 million net loss for Gordmans’ fiscal year, which ended on Jan. 31. Last year, Gordmans posted net income of $8 million for the fiscal year.
Net sales totaled $634.6 million, up 2.4 percent and including a drop of 4.8 percent in same-store sales. Selling, general and administrative expenses rose 7.4 percent, and interest expense more than doubled for the year.
For the fourth quarter, Gordmans’ net income totaled $2.3 million, down 16 percent from the fourth quarter of last year. Net sales rose 1.9 percent to $203.9 million, with same-store sales down 2.7 percent.
Andy Hall, Gordmans’ president and CEO, described the fourth quarter as a period of “progress” for the retailer. Hall said the same-store sales decline was actually a “significant improvement” from the same-store trends entering the quarter. Also, the company was able to reduce inventories and increase free cash flow.
However, Hall added, “we still have significant improvement to make to return the company to consistent positive comparable-store sales growth and profitability.” He said Gordmans is working on a number of initiatives, including the launch of its e-commerce in the middle of this year, reconfiguring its marketing focus to leverage its “guest loyalty program,” optimizing the supply chain and continuing to expand its store base.