Gordmans Stores, Inc. Announces First Quarter 2013 Results

Gordmans Stores, Inc. Announces First Quarter 2013 Results 
First Quarter Diluted EPS of $0.17 
OMAHA, NE -- (Marketwired) -- 05/23/13 --  Gordmans Stores, Inc.
(NASDAQ: GMAN), an Omaha-based apparel and home decor retailer, today
announced results for its first quarter (thirteen weeks) ended May 4,
2013. 
First Quarter Highlights 


 
--  Three new stores were opened in existing markets in the first quarter
    as part of our expansion strategy.
--  Diluted earnings per share were $0.17, which exceeded guidance of
    $0.11 - $0.13.

  
"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." 
First Quarter Financial Results
 Net sales for the thirteen weeks
ended May 4, 2013 decreased 1.9% to $131.4 million from $133.9
million for the thirteen weeks ended April 28, 2012. Comparable store
sales for the first quarter of fiscal 2013 decreased by 10.5% versus
a 4.7% comparable store sales increase in the first quarter of fiscal
2012. Gross profit, which includes license fees, decreased by 7.1% to
$59.0 million, or 44.9% of net sales, from $63.5 million, or 47.4% of
net sales, in the first quarter of fiscal 2012. Selling, general and
administrative costs were $53.7 million, or 40.8% of net sales,
compared to $50.5 million, or 37.7% of net sales, in the first
quarter of fiscal 2012. Net income for the first quarter of fiscal
2013 was $3.2 million, or $0.17 per diluted share, compared to net
income of $8.1 million, or $0.41 per diluted share, in the first
quarter of fiscal 2012.  
Outlook
 For the second quarter of fiscal
year 2013 ending August 3, 2013, the Company currently expects net
sales to be between $135 and $137 million, which reflect a low single
digit comparable store sales decrease. The Company also expects
continued pressure on gross profit margins related to inventory
recalibration efforts as well as additional selling, general and
administrative expenses related to advertising related to our loyalty
program, consulting related to store productivity improvements,
depreciation and pre-opening compared to the prior year, and
therefore projects diluted earnings per share in the range of $0.01
to $0.03 (using a weighted average diluted share count of
approximately 19.4 million).  
Conference Call Information
 A conference call to discuss first
quarter financial results is scheduled for today, May 23, 2013 at
11:00 a.m. Eastern Time. The conference call will be webcast live at
http://investor.gordmans.com/events.cfm. 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.  
About Gordmans Stores, Inc. 
 Gordmans (NASDAQ: GMAN) features a
large selection of the latest name brands, fashions and styles at up
to 60 percent off department and specialty store prices every day.
The wide range of merchandise includes apparel for all ages,
accessories, footwear, home decor, gifts, designer fragrances,
fashion jewelry, bedding and bath, accent furniture and toys. Founded
in 1915, Gordmans operates 86 stores in 18 states. For more
information about Gordmans, visit www.gordmans.com.  
Safe Harbor Statement
 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, comparable
store sales, diluted earnings 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; and
(6) 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 February 2, 2013, 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. 


 
                   GORDMANS STORES, INC. AND SUBSIDIARIES                   
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                           (Dollars in Thousands)                           
                                                                            
                                              May 4, 2013   February 2, 2013
                                           ---------------- ----------------
ASSETS                                        (Unaudited)      (Unaudited)  
CURRENT ASSETS:                                                             
  Cash and cash equivalents                $         49,395 $         40,824
  Accounts receivable                                 1,904            2,049
  Landlord receivable                                 4,837            8,787
  Income taxes receivable                                --            1,300
  Merchandise inventories                            89,418           78,006
  Deferred income taxes                               2,707            2,617
  Prepaid expenses and other current                                        
   assets                                             8,158            6,552
                                           ---------------- ----------------
    Total current assets                            156,419          140,135
PROPERTY AND EQUIPMENT, net                          53,835           45,966
INTANGIBLE ASSETS, net                                1,970            1,992
OTHER ASSETS, net                                     3,168            3,033
                                           ---------------- ----------------
                                                                            
TOTAL ASSETS                               $        215,392 $        191,126
                                           ================ ================
                                                                            
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
CURRENT LIABILITIES:                                                        
  Accounts payable                         $         49,389 $         34,211
  Income taxes payable                                  484               --
  Accrued expenses                                   26,498           22,789
  Current portion of capital lease                                          
   obligations                                           76              189
                                           ---------------- ----------------
                                                                            
    Total current liabilities                        76,447           57,189
                                           ---------------- ----------------
                                                                            
NONCURRENT LIABILITIES:                                                     
  Deferred rent                                      23,126           21,997
  Deferred income taxes                               9,413            9,236
  Other liabilities                                     300              316
                                           ---------------- ----------------
                                                                            
    Total noncurrent liabilities                     32,839           31,549
                                           ---------------- ----------------
                                                                            
COMMITMENTS AND CONTINGENCIES                                               
                                                                            
STOCKHOLDERS' EQUITY:                                                       
  Preferred stock                                        --               --
  Common stock                                           19               19
  Additional paid-in capital                         52,931           52,461
  Retained earnings                                  53,156           49,908
                                           ---------------- ----------------
                                                                            
    Total stockholders' equity                      106,106          102,388
                                           ---------------- ----------------
                                                                            
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $        215,392 $        191,126
                                           ================ ================
                                                                            
                                                                            
                   GORDMANS STORES, INC. AND SUBSIDIARIES                   
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                  (Dollars in Thousands Except Share Data)                  
                                                                            
                                            13 Weeks Ended   13 Weeks Ended 
                                             May 4, 2013     April 28, 2012 
                                             (Unaudited)      (Unaudited)   
                                           ---------------  --------------- 
Net sales                                  $       131,434  $       133,922 
License fees from leased departments                 1,921            1,937 
Cost of sales                                      (74,364)         (72,368)
                                           ---------------  --------------- 
  Gross profit                                      58,991           63,491 
Selling, general and administrative                                         
 expenses                                          (53,673)         (50,486)
                                           ---------------  --------------- 
  Income from operations                             5,318           13,005 
Interest expense, net                                 (121)            (125)
                                           ---------------  --------------- 
  Income before taxes                                5,197           12,880 
Income tax expense                                  (1,949)          (4,830)
                                           ---------------  --------------- 
                                                                            
  Net income                               $         3,248  $         8,050 
                                           ===============  =============== 
                                                                            
Basic earnings per share                   $          0.17  $          0.42 
Diluted earnings per share                 $          0.17  $          0.41 
                                                                            
Basic weighted average shares outstanding       19,242,790       19,095,223 
Diluted weighted average shares                                             
 outstanding                                    19,424,882       19,424,699 

  
Company Contact: 
Mike James 
Chief Financial Officer 
(402) 691-4126 
Investor Relations: 
ICR, Inc.
Brendon Frey 
(203) 682-8200