Gordmans Stores, Inc. Announces First Quarter 2015 Earnings of $0.02 per Diluted Share
First Quarter Earnings Improve 151% on Increased Sales and Improved Margins
(firmenpresse) - OMAHA, NE -- (Marketwired) -- 05/21/15 -- Gordmans Stores, Inc. (NASDAQ: GMAN), an Omaha-based apparel and home décor retailer, announced results for its first quarter ended May 2, 2015.
Net sales increased 2.0% to $145.9 million compared to $143.0 million with comparable store sales on an owned and licensed basis decreasing 1.0%.
Gross profit of $65.0 million improved 20 bps to 44.5% of net sales.
Diluted earnings per share were $0.02, vs. ($0.04) last year and a guidance range of ($0.06) to ($0.02).
A successful two store launch in Cleveland, Ohio.
"We are pleased with our first quarter financial results and progress regarding our goal to return the company to consistent annual comparable store sales growth and profitability. Our first quarter earnings per share exceeded our guidance range due to stronger gross margin performance, combined with favorable operating expense performance," commented Andy Hall, President and Chief Executive Officer. "First quarter net sales increased 2.0% and our comparable store sales trend improved versus our 2014 trend. We are also very happy with our end of quarter inventory position from a quantitative and qualitative perspective. Our inventory is significantly more current than last year while we continue to operate with less comparable store inventory."
Hall added, "We are seeing the guest respond to newness and we are continuing to markdown slower moving goods in season. We continue to work towards a mid-year launch of our e-commerce platform and expect to rollout our new marketing campaign late in the second quarter. Both of these initiatives are key building blocks for long term results."
Net sales for the first quarter ended May 2, 2015 increased 2.0% to $145.9 million from $143.0 million for the first quarter ended May 3, 2014. Comparable store sales on an owned and licensed basis decreased 1.0%. On an owned basis, comparable store sales declined 1.7%, in line with guidance.
Gross profit increased by 2.5% to $65.0 million, or 44.5% of net sales, from $63.4 million, or 44.3% of net sales, in the first quarter of fiscal 2014. The 20 basis point increase in gross margin was primarily due to lower markdowns and higher license fees.
Selling, general and administrative expenses were $63.3 million, or 43.4% of net sales, compared to $63.4 million, or 44.3% of net sales, in the first quarter of fiscal 2014. As a percent of net sales, the 90 bps improvement resulted from better than plan store expense performance related to health insurance costs and maintenance; better than plan corporate expenses related to payroll benefit costs and recruiting costs; and non-recurring compensation costs incurred in 2014.
Interest expense decreased by $0.2 million to $1.0 million in the first quarter of fiscal 2015 compared to a year ago due to a pay down of a portion of our senior term loan in November 2014.
Income tax expense was $0.2 million compared to income tax benefit of $0.4 million in the first quarter of fiscal 2014.
Net income for the first quarter of fiscal 2015 was $0.4 million, or $0.02 per diluted share, compared to a net loss of ($0.7) million, or ($0.04) per diluted share, in the first quarter of fiscal 2014.
The Company opened two new stores in the Cleveland, Ohio MSA during the first quarter of 2015. The Company plans to open four additional new stores in 2015, two of which will open in the second quarter. The Company also plans to close one store later this year when the lease term expires.
The Company continues to maintain significant excess availability on its revolving line of credit and expects 2015 interest savings of approximately $0.8 million as a result of paying down a portion of the senior term loan in November 2014. The Company is also exploring refinancing its senior term loan in order to reduce its annual interest expense and extend the term loan due date.
For the second quarter of fiscal year 2015, the Company expects net sales to be between $144 and $147 million, which reflects a flat to low-single digit comparable store sales decrease on an owned and licensed basis, with comparable store sales slightly lower on an owned basis. The Company expects gross profit margins to be better than last year as inventory aging and clearance inventories are in better condition than at the end of the first quarter of 2014. Selling, general and administrative expenses are expected to deleverage in the second quarter primarily due to additional depreciation and e-commerce expenses. The Company projects a diluted loss per share in the range of ($0.15) to ($0.12) for the second quarter. The weighted average diluted share count is expected to be approximately 19.4 million.
A conference call to discuss first quarter financial results is scheduled for today, May 21, 2015 at 4:30 p.m. Eastern Time. The conference call will be webcast live at . A replay of this call will be available within two hours of the conclusion of the call and will remain on the website for one year.
Gordmans (NASDAQ: GMAN) is an everyday value priced department store featuring a large selection of name brands and the latest fashions and styles at up to 60 percent off department and specialty store prices. The wide range of merchandise includes apparel and footwear for men, women and children, as well as accessories, home décor, gifts, designer fragrances, fashion jewelry, bedding and bath, accent furniture and toys. Founded in 1915, Gordmans currently operates 99 stores in 22 states. For more information about Gordmans, visit .
Certain statements in this release are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "guidance," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected net sales, net income < loss >, comparable store sales, diluted earnings < loss > per share, and store expansion, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are (1) changes in consumer spending and general economic conditions; (2) our ability to identify and respond to new and changing fashion trends, guest preferences and other related factors; (3) fluctuations in our sales and profitability on a seasonal basis; (4) intense competition from other retailers; (5) our ability to maintain or improve levels of comparable store sales; (6) our ability to attract and retain talent and (7) our successful implementation of advertising, marketing and promotional strategies.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including other risks, relevant factors and uncertainties identified in the "Risk Factors" section of the Company''s Annual Report on Form 10-K for the fiscal year ended January 31, 2015, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Company Contact:
Mike James
Chief Financial Officer
(402) 691-4126
Investor Relations:
ICR, Inc.
Brendon Frey
(203) 682-8200
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Datum: 21.05.2015 - 14:01 Uhr
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