Gordmans Stores Earnings: Here’s Why Investors Don’t Like These Results
Gordmans Stores, Inc. (NASDAQ:GMAN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.76%.
Gordmans Stores, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 58.54% to $0.17 in the quarter versus EPS of $0.41 in the year-earlier quarter.
Revenue: Decreased 3.28% to $131.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Gordmans Stores, Inc. reported adjusted EPS income of $0.17 per share. By that measure, the company beat the mean analyst estimate of $0.12. It beat the average revenue estimate of $129.36 million.
Quoting Management: “The combination of the 10.5% comparable store sales decline we experienced in the first quarter and a lower gross profit margin resulting from additional markdowns to reduce inventory levels negatively impacted our first quarter operating results,” commented Jeff Gordman, President and Chief Executive Officer. “However, our second quarter is off to a solid start and we believe that the growth initiatives that we have put in place will produce improved comparable store sales as the year progresses. We are looking forward to opening four stores in advance of the back-to-school selling season in Albuquerque, Minot, ND, Milwaukee and Louisville, KY, all new markets for our Company.”
Key Stats (on next page)…