On Mar 28, 2013, Zacks Investment Research downgraded Gordmans Stores, Inc. (GMAN - Snapshot Report) to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Gordmans Stores has been witnessing sharp downward estimate revisions after the company reported disappointing fourth-quarter fiscal 2012 results and cited a soft start to fiscal 2013.
This department store retailer declared results on Mar 25, 2013, wherein earnings of 41 cents a share fell sharply by 22.6% from 53 cents earned in the prior-year quarter. However, quarterly earnings managed to exceed the Zacks Consensus Estimate of 36 cents. For fiscal 2012, earnings came in at $1.21 per share down 6.9% from $1.30 delivered in the prior year due to higher costs.
Net sales of $202.5 million fell short of the Zacks Consensus Estimate of $207 million, but it increased 9.4% from the year-ago quarter. Comparable-store sales dropped 4.1% compared with an increase of 2.1% witnessed in the prior-year quarter.
Sluggish comps growth and a challenging economic environment remain a drag on the quarter. Consequently, we are witnessing a fall in the Zacks Consensus Estimates. The Zacks Consensus Estimate for the first and second quarters of fiscal 2013 dropped 72.7% and 20%, to 12 cents and 16 cents a share, respectively, over the past 7 days.
Moreover, for fiscal 2013 and 2014, the Zacks Consensus Estimate fell by 21.9% and 21.8% to $1.07 and $1.29 per share, respectively, over the same time frame.
Other Stocks to Consider
Not all stocks in non-food retail, wholesale sector are performing as disappointingly as Gordmans Stores. Other stocks worth considering include Lumber Liquidators Holdings Inc. (LL - Snapshot Report) , Macy’s, Inc. (M - Analyst Report) and Cabela’s Incorporated (CAB), all of which carry a Zacks Rank #1 (Strong Buy).