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Gordmans keen on store count growth in '12 and ‘13

Omaha, Neb. -- Gordmans Stores credited strong sales at its six new stores, a modest comp increase and continued expansion of the retailer's gross profit margins for propelling its fourth-quarter and fiscal 2011 results.

For the quarter, ended Jan. 28, the company reported a 21.2% increase in net income to $10.2 million, or 53 cents per diluted share, compared to $8.4 million, or 44 cents per diluted share in the year-ago period.

Net sales for the 13 weeks increased 10.0% to $185.1 million from $168.4 million last year, and comparable store sales were up 2.1%.

Fiscal 2011 net income jumped by 61.5% to $25.2 million, or $1.30 per diluted share, compared $15.6 million in fiscal 2010. Excluding the one-time, pre-tax expenses of $10.6 million related to the initial public offering, non-GAAP adjusted net income for fiscal year 2010 was $22.4 million, or $1.28 per diluted share.

Net sales for the year increased 6.7% to $551.5 million from $517.0 million in fiscal 2010 as a result of the opening of six new stores, and a comparable store sales increase of 0.7%.

New store growth has been a key growth vehicle for Gordmans. The regional chain plans to open nine new stores this year as well as "at least" nine more new sites in 2013, explained Jeff Gordman, president and ceo.

"We are aggressively focused on our store expansion plan for 2013," he said.

The company is currently in negotiations for many of these sites, set to open in existing markets such as Salt Lake City, Minneapolis, Indianapolis, Colorado Springs, Kansas City and Albuquerque, as well as new markets of Columbus, Dayton, and Cincinnati in Ohio.

Including the new stores slated for 2013, Gordmans will have grown its store count by 35% over three years -- from 68 units by end of fiscal 2010 to 92 by the end of fiscal 2013, he noted.

"We begin 2012 with sound strategies in place to maintain our positive comparable store sales growth momentum and we are well positioned to successfully execute our aggressive store expansion plan."

Gordmans' outlook for the first quarter, which ends April 28, calls for: net sales between $132 million and $133 million, which reflect a low-single digit comparable store sales increase; and diluted earnings per share in the range of 40 to 41 cents, using a diluted share count of approximately 19.4 million shares.

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