Gordmans Stores, Inc. (GMAN) Misses Q1 EPS by 1c

Gordmans Stores, Inc. (NASDAQ: GMAN) reported a Q1 loss of $0.04 per share, or $0.01, ex-items, $0.01 worse than the analyst estimate of $0.02. Revenue for the quarter came in at $143 million versus the consensus estimate of $141.9 million.

"Our first quarter sales performance was driven by the ten new stores that we opened in fiscal 2013 and the three new stores that we opened in the first quarter of fiscal 2014, partially offset by a comparable store sales decline of 2.7%," commented Scott King, Interim Chief Executive Officer. "While we are disappointed with our first quarter results, we are encouraged that comparable store sales improved as the quarter progressed. We believe that the initiatives that we have put in place to realign our merchandise mix, modify our store presentation and adjust our marketing to focus on merchandise, value and urgency and utilize information obtained from our loyalty program will produce improved comparable store sales results as the year progresses."

King added, "We ended the quarter with inventory per average store below last year's level, however, our aged inventory position as a percentage of total inventory is higher than historical levels due to our sales performance. As a result, we are planning to aggressively address this issue in the second quarter with additional markdowns to clear aged clearance goods. These actions will have a negative impact on second quarter gross margins, but should lead to an improved inventory position and improved gross margin in the back half of the year. In addition, we are reviewing our expense structure and believe we can enhance operating performance over the remainder of the year by up to $3.0 million after the costs associated with our plans to introduce eCommerce in 2015."

For earnings history and earnings-related data on Gordmans Stores, Inc. (GMAN) click here.

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