Gordmans Stores (GMAN) Warns for Q4

January 14, 2013 4:32 PM EST
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Gordmans Stores, Inc. (NASDAQ: GMAN) lowers its fourth quarter guidance.

The Company announced that fourth quarter comparable sales through January 12, 2013 declined 4.6%. Based on this performance, the Company now expects net revenue for the fourth quarter of fiscal 2012, a fourteen week quarter compared to the thirteen week fourth quarter of fiscal 2011, to be approximately $203 million, compared with $185 million in the prior year period and previous guidance of $213 to $215 million. In addition, the Company expects diluted earnings per share to be in the range of $0.35 to $0.37, compared with $0.53 in the prior year period and previous guidance of $0.58 to $0.61.

*** The consensus is revenues of $214.2 million and EPS of $0.60.

Jeff Gordman, President and Chief Executive Officer of Gordmans, stated, "Our comparable store sales declined due in part to our seasonal businesses, which suffered disproportionately greater sales decreases, as well as merchandise offerings in several categories that lacked sufficient breadth of selection. We are aggressively managing inventories to ensure that we are well positioned as we transition into the first quarter of fiscal 2013, which will negatively impact our margins for the fourth quarter."

Gordman added, "Comparable store sales for January month to date are up mid-single digits. In addition, we are encouraged by the performance of our new stores opened in 2008 through 2012, as in the aggregate they continue to perform above our new store model in both sales and operating profit. We opened nine new stores in fiscal 2012, a 50% increase in new locations from the previous year and the most stores that we have opened since 2005, and entered 4 new markets: Salt Lake City; Ogden, UT; Boise, ID; and Indianapolis. Our expansion plans for 2013 include 10 new stores in six new and two existing markets. Including these locations, we will have increased our store base by nearly 40% over a three year period to 93 stores from 68 locations at the end of fiscal 2010."

NOTE: The stock is halted with the news.

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