Gordman's reports 10th straight comp decline

Off-price retailer Gordmans Stores Inc. on Friday reported a decline in same store sales for the 10th straight quarter.

Gordmans said fourth-quarter net income was $2.3 million, or 12 cents a share, down from $2.7 million, or 14 cents as share, a year earlier. Sales at stores open at least one year fell 2.7%. Net sales rose 2% to $204 million.

"Our fourth quarter earnings per share exceeded our guidance range due to sales near the high end of guidance, combined with favorable operating expense performance," commented Andy Hall, President and Chief Executive Officer. "We ended the year with inventories in great shape from a quantitative and qualitative perspective. In addition, we significantly improved our financial health by increasing our free cash flow by $30 million, decreasing working capital by 56% and reducing outstanding debt by 21%."

For fiscal 2014, the net loss was $3.5 million, or 18 cents a share, after having recorded net income of $8 million, or 41 cents a share, a year earlier. Hall continued, "While we are pleased with our fourth quarter progress, we still have significant improvement to make to return the Company to consistent positive comparable store sales growth and profitability. We continue to work on a number of strategic initiatives, including the mid-year launch of ecommerce, modifying our marketing focus to leverage our guest loyalty program, optimizing our supply chain and continuing to expand our store base."

Hall was hired last year to replace the retiring Jeff Gordman, and has concentrated on merchandising and marketing. Six new stores were opened last year in five new cities, including in the two new states of Michigan and Texas, Gordmans said. The Omaha-based company ended the year operating 97 stores and in 2015 plans to open six new stores, two of which opened in the Cleveland area this month.