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Gordmans Stores Inc., the Omaha-based apparel and home decor retailer, reported a 10.5 percent decrease in sales at stores open at least a year during the first quarter 2013, while net income declined by more than half compared to the same period a year ago.
Net income for the 13 weeks ending May 4 was $3.2 million, or 17 cents per diluted share, compared to net income of $8.1 million, or 41 cents per diluted share during the same quarter a year ago, according to documents filed with the U.S. Securities and Exchange Commission.
Comparable store sales decreased by 10.5 percent in the first quarter of 2013 versus a 4.7 percent comparable store sales increase during the same period a year ago. Net sales decreased nearly 2 percent to $131.4 million from $133.9 million in the first quarter 2012.
Selling, general and administrative costs were $53.7 million, or 40.8 percent of net sales, compared to $50.5 million, or 37.7 percent of net sales, in the first quarter of fiscal 2012.
Jeff Gordman, the company's president and chief executive, said “the combination of the 10.5 percent 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.”
Gordman, however, was optimistic about the current quarter.
“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,” he said. “We are looking forward to opening four stores in advance of the back-to-school selling season in Albuquerque; Minot, North Dakota; Milwaukee; and Louisville, Kentucky, all new markets for our company.”
The company opened three new stores in the first three months of this year, two in Utah (American Fork and Midvale), and one in East Peoria, Ill. Last month, Gordmans broke ground on a new 545,000-square-foot distribution center in the Indianapolis area, a $37.5 million investment intended to support the retailer's continued expansion.
In March, the company broke ground on new corporate offices at Aksarben Village near 67th and Frances Streets for up to 330 employees.
Gordmans, founded in 1915, assumed its current retail format in 1996, when Jeff Gordman took the helm. The publicly traded retailer operates 86 stores in 18 states.
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