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A tough Q1 for Gordmans

Omaha, Neb. - Regional department store chain Gordmans experienced a sharp comp decrease and reduced gross profit margins during the first quarter.

Net income for the quarter ended May 4 dropped 12% to $3.2 million, or 17 cents per share. Gross profit fell 7.1% to $59.0 million, or 44.9% of net sales, from $63.5 million, or 47.4% of net sales.

Sales slipped 1.9% to $131.4 million, and comparable store sales tumbled 10.5%, compared to a 4.7% increase in the first quarter of fiscal 2012.

Jeff Gordman, president and ceo of the 86-unit chain, noted two highlights in the 13-week period: Three new stores were opened in existing markets as part of Gordmans' expansion strategy; and diluted earnings per share were 17 cents, exceeding guidance of 11 to 13 cents.

The company's outlook for the second quarter calls for sales to be between $135 million and $137 million, which reflects a low single digit comparable store sales decrease.

"The second quarter is off to a solid start and we believe that the growth initiatives that we have put in place will produce improved comparable store sales as the year progresses," he said. "We are looking forward to opening four stores in advance of the back-to-school selling season in Albuquerque, Minot, ND, Milwaukee and Louisville, KY, all new markets for our company."


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