Gordmans Stores net income drops in Q4; six stores on tap

Omaha, Neb. – Net income at Gordmans Stores Inc. dropped 15% to $2.3 million in the fourth quarter of fiscal 2014, from $2.7 million the same period a year earlier. Increased selling, general and administrative (SG&A) costs helped push down profits.



In 2015, the company plans to open six new stores, two of which opened in the Cleveland area earlier in March. Gordmans also plans to close one store later in 2015 when the lease term expires.



Net sales increased 2% to $203.9 million from $200 million. Same-store sales decreased by 2.7%.



Andy Hall, president and CEO, said Gordmans plans to initiate e-commerce activities during fiscal 2015.



"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,” said Hall. “We continue to work on a number of strategic initiatives, including the mid-year launch of e-commerce, modifying our marketing focus to leverage our guest loyalty program, optimizing our supply chain and continuing to expand our store base."



For the full fiscal year, Gordmans reported a net loss of $3.5 million, compared to net income of $ million in fiscal 2013. Net sales increased 2% to $634.6 million, from $619.6 million. Same-store sales for fiscal year 2014 decreased 4.8%.



Looking ahead, Gordmans expects a flat to low-single digit comparable store sales decrease during fiscal 2015.