Gordmans looks for new leader in home

Retail Editor 2, August 28, 2013

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.


Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Current issue for September 2017

See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!