Gordmans Stores, Inc. Announces Second Quarter 2015 Results
Net Loss Excluding Debt Extinguishment Costs Improves 43% on Increased Sales and Improved Margins
(firmenpresse) - OMAHA, NE -- (Marketwired) -- 08/21/15 -- Gordmans Stores, Inc. (NASDAQ: GMAN), an Omaha-based apparel and home décor retailer, announced results for its second quarter and six months ended August 1, 2015.
Net sales increased 1.7% to $143.4 million compared to $141.0 million.
Gross profit of $62.8 million improved 150 bps to 43.8% of net sales.
Extinguished $29.2 million of high rate term debt. Recorded $2.0 million charge related to extinguishment in the second quarter.
Diluted loss per share was ($0.09) adjusted to exclude a $0.06 charge related to debt extinguishment, versus ($0.16) last year and a guidance range of ($0.15) to ($0.12).
Opened new stores in Minneapolis, Minnesota and Lansing, Michigan in July.
As announced earlier this week, Gordmans gains a national presence with its August e-commerce launch.
Andy Hall, President and Chief Executive Officer, commented, "We are pleased with the continued improvement in our bottom line performance. The second quarter net loss, excluding costs related to the extinguishment of high rate term debt, improved 43% and was driven by higher sales and better gross margin performance. It was good to see that our comp store sales trend improvement continued in the second quarter. Second quarter comparable store sales on an owned plus licensed basis decreased 1.6% including an expected 1.0% detriment due to the shift in the sales tax holiday from July to August. Heading into the back half of the year, we are pleased with our inventory content as we accelerated back-to-school receipts vs. last year to be better positioned to capture August sales."
Hall added, "We are excited about the recent announcements that strengthen our company going forward. First, in June, we refinanced high rate senior debt with a new $30 million term loan that carries a 225 basis point lower interest rate. Also, we launched our e-commerce site. Now guests from across the country may access Gordmans extraordinary value proposition anytime, anywhere."
Net sales for the second quarter ended August 1, 2015 increased 1.7% to $143.4 million from $141.0 million for the second quarter last year. Comparable store sales on an owned plus licensed basis decreased 1.6%. On an owned basis, comparable store sales declined 1.7%, in line with guidance. Both the owned and owned plus licensed bases were negatively impacted by approximately 1.0% due to a sales tax holiday shift from July to August.
Gross profit increased by 5.2% to $62.8 million, or 43.8% of net sales, from $59.7 million, or 42.3% of sales, in the second quarter of fiscal 2014. The 150 basis point increase in gross margin was primarily due to lower markdowns compared to last year.
Selling, general and administrative expenses were $64.8 million, or 45.2% of net sales, compared to $63.5 million, or 45.0% of sales, in the second quarter last year. The increase in expenses was primarily due to higher depreciation expense and higher store expenses driven by a higher store count.
The Company recorded a $2.0 million charge in the second quarter of fiscal 2015 related to the early debt retirement.
The net loss for the 2015 second quarter, as adjusted to exclude the debt extinguishment charge, was $1.8 million, or ($0.09) per diluted share, compared to a net loss of $3.2 million, or ($0.16) per diluted share, in the second quarter of fiscal 2014. The GAAP basis net loss for the second quarter of fiscal 2015 was ($0.16) per diluted share.
At the conclusion of this press release is a reconciliation of GAAP to Non-GAAP adjusted financial measures.
Net sales for the first six months of fiscal 2015 increased by $5.3 million, or 1.9%, to $289.4 million. Comparable store sales decreased 1.3% on an owned plus licensed basis and decreased 1.7% on an owned basis. Gross profit increased 3.8%, to $127.8 million and represented 44.2% of sales, compared to $123.1 million and 43.3% of sales last year. The 2015 net loss on an adjusted basis for the first six months of $1.5 million, or ($0.07) per diluted share was 63% better than last year''s net loss of $3.9 million, or ($0.20) per diluted share. The net loss for the first six months on a GAAP basis was ($0.14) per diluted share.
The Company opened two new stores in Lansing, Michigan and in Minneapolis, Minnesota during the second quarter of 2015. The Company has opened four new stores year-to-date and plans to open two additional new stores in the third quarter of 2015 and close one store later this year when the lease term expires.
The Company continues to maintain significant availability on its revolving line of credit facility. The Company refinanced its $29.2 million senior term loan in June 2015 to reduce its annual interest expense by approximately $1.0 million.
In August, the Company expanded its presence from 22 states to a national footprint with the addition of online shopping. Now guests from across the country may access savings of up to 60% off department store prices. Gordmans.com provides shoppers with a wide array of merchandise found in Gordmans stores including apparel and footwear for men, women and children in addition to home décor, designer fragrances, fashion jewelry, bedding and bath and toys.
For the 2015 third quarter, the Company expects net sales to be between $153 and $156 million, which reflects a flat to low-single digit comparable store sales increase on an owned plus licensed basis. The Company expects gross profit margin to improve versus last year. Selling, general and administrative expenses are expected to deleverage in the third quarter primarily due to additional advertising, depreciation, e-commerce and pre-opening/closing expenses. The Company projects a diluted loss per share in the range of ($0.15) to ($0.12) for the third quarter. The weighted average diluted share count is expected to be approximately 19.4 million.
A conference call to discuss second quarter financial results is scheduled for today, August 21, 2015 at 11:00 a.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 guests can shop in any of our 101 stores in 22 states or at gordmans.com. For more information about Gordmans, please 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.
To supplement our condensed consolidated statements of operations presented in accordance with generally accepted accounting principles ("GAAP"), we are providing non-GAAP adjusted financial measures of operating results that exclude certain items. Loss on extinguishment of debt, loss before taxes, income tax benefit, net loss, and both basic and diluted earnings per share are presented below both as reported on a GAAP and non-GAAP adjusted basis related to the loss on extinguishment of debt associated with refinancing our term debt. We believe these items should be presented separately to enhance a reader''s overall understanding of the Company''s ongoing operations. These non-GAAP adjusted financial measures should be considered in conjunction with the GAAP financial measures. We believe these non-GAAP adjusted financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of such operations. In addition, we evaluate results using GAAP and non-GAAP adjusted financial measures. These non-GAAP adjusted financial measures should not be considered in isolation or as a substitute for GAAP financial measures. The following tables reconcile the GAAP to Non-GAAP adjusted financial measures for the periods presented.
Company Contact:
Mike James
Chief Financial Officer
(402) 691-4126
Investor Relations:
ICR, Inc.
Brendon Frey
(203) 682-8200
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Datum: 21.08.2015 - 06:00 Uhr
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