Gordmans expects challenging holidays
Regional department store operator Gordmans Stores said its fourth quarter same store sales are likely to decline in the mid-single digits after it reported a 6.1% drop in comps for the third quarter ended November 2.
Despite the comp decline, Gordman’s total sales at its 93 stores increased 5.8% to $151.3 million from $143.1 million due to the addition of 10 new stores in the prior nine months. Net income for the third quarter was $1.1 million, or six cents a share, compared to net income of $4 million, or 21 cents a share, last year.
"Third quarter net sales in total were in line with expectations, driven by the 10 new stores that we opened throughout the first nine months of the year. While comparable store sales for the third quarter were below expectations, trends improved in October, with comparable store sales even with that of a year ago," said Jeff Gordman, president and CEO of Gordman’s. "This improvement was primarily attributable to the initiatives we put into place in the first nine months of the year, including the implementation of our marketing and merchandising strategies as well as the rollout of our loyalty program. Moreover, we were aggressive with our markdown cadence during the quarter in our ongoing efforts to position our inventory levels ahead of the critical holiday selling season."