Gordmans looks for new leader in home
August 28, 2013-- Home Textiles Today,
Omaha, Neb. - Gordmans took some expected hits during the second quarter as it works to improve its business into the second half of the year, including aggressive store expansion into new markets.
Still lagging in the process is the company's home segment, which incurred high single digit comp store sales decreases during the quarter. Gordmans is in the process of searching for new home leadership as well as diversifying the department with new products, brands and price points in time for the holiday selling season.
Net income for the second quarter fell a steep 74% to $0.9 million, from $3.5 million. Compared to last year's 18 cents, diluted earnings per share dropped to 5 cents yet exceeded guidance of 1 to 3 cents. The company stepped up markdowns during the quarter to clear the way for second half inventory.
Net sales rose 6.7% to $136.8 million.
Comps declined by 2.6%, but were "consistent with expectations, despite some continued headwinds," noted president and ceo Jeff Gordman, "and represented a meaningful improvement from the trend we experienced in the first quarter of 2013."
Year to date, net income fell 64% to $4.2 million, or 22 cents per share. Net sales were up 2.3% to $268.2 million, while comps fell 6.7% versus a 2.5% comp increase for the same period last year.
In the quarter, Gordmans opened four new stores in four new markets, including one new state. This fall, the company plans to open three stores in September for a total of 10 new stores this year, bringing the total to 93 locations in 19 states.
"We believe that the adjustments we've made, and continue to make, to our merchandise assortments, combined with the rollout of our loyalty program, have positioned us to deliver further improvements over the remainder of fiscal 2013," Gordman added.
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