Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Gordmans Stores Inc. (GMAN - Snapshot Report) posted earnings per share of 41 cents in the fourth quarter of fiscal 2012, ahead of the Zacks Consensus Estimate of 36 cents. However, quarterly result lagged the year-ago quarter’s earnings of 53 cents per share. Decline in comparable store sales combined with higher expenses led to the fall in net income.

Behind the Headline Numbers

Net sales for Gordmans Stores grew 9.4% year over year in the fourth quarter to $202.5 million, buoyed by nine new stores that led to a 12% expansion in its store base. Revenues missed the Zacks Consensus Estimate of $207.0 million.

Quarterly comparable store sales (comps) declined 4.1% year over year in contrast to a 2.1% increase in comps in the prior-year quarter. Seasonality as well as the lack of variety in merchandise offerings in several categories hurt comps in the quarter.

During the quarter, Gordmans Stores' gross margin dipped 140 basis points (bps) to 38.7%. To manage inventory, the company banked on various sales-driven initiatives that in turn hurt margins.

Full-Year Update

In fiscal 2012, earnings per share were $1.21 versus $1.30 in fiscal 2011 due to increased costs. Net sales for Gordmans Stores grew 10.2% to $607.7 million.

Store Update

For 2013, the company plans to open 10 new stores in 4 new and 2 existing markets.

Our Take

Gordmans Stores houses a large number of brands. The company is in an expansion mode in new as well as existing markets. However, the company slashed its 2012 guidance several times last year.

Sluggish comps growth and successive declines in revenue guidance indicating a poor business environment remain causes of concern. The beginning of the year was also tepid for the company, which makes us cautious at the current level and we prefer to take a wait and see approach.

Gordmans Stores currently carries a Zacks Rank #5 (Strong Sell). Some other retail industry stocks currently performing well include Sears Holdings Corp (SHLD - Analyst Report) and Costco Wholesale Corp. (COST - Analyst Report)  both with a Zacks Rank #2 (Buy). Investors can also consider Red Robin Gourmet Burgers Inc. (RRGB - Analyst Report), which currently holds a Zacks Rank #1 (Strong Buy)
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RAMBUS INC RMBS 12.36 +4.83%
BOFL HOLDING BOFI 85.10 +4.73%
DIXIE GROUP DXYN 15.33 +4.43%
DAIMLER AG DDAIF 92.96 +2.88%
ALLIANCE FIB AFOP 17.21 +2.75%