Sales up 11.7% at apparel retailer Gordmans in H1 FY'12

Net sales for the twenty-six weeks ended July 28, 2012 increased 11.7% to $262.2 million from $234.7 million for the same period last year, with comparable store sales increasing by 2.5%. Gross profit increased by 40 basis points, or 12.7%, to $122.2 million, or 46.6% of net sales, from $108.4 million, or 46.2% of net sales, in the prior year. Selling, general and administrative costs were $103.4 million, or 39.4% of net sales, compared to $91.6 million, or 39.0% of net sales, in the prior year.

The Company reported a 13.5% increase in net income to $11.6 million, or $0.60 per diluted share (based on 19,443,441 weighted average dilutive shares outstanding), compared to net income of $10.2 million, or $0.53 per diluted share (based on 19,320,445 weighted average dilutive shares outstanding), in the first twenty-six weeks of fiscal 2011.

Outlook

The Company expects a low single digit comparable store sales increase for the second half of the fiscal year, consistent with the comparable store sales increase experienced in the first half of the fiscal year.

For the fiscal year ending February 2, 2013, a fifty-three week fiscal year compared to fifty-two week fiscal year 2011, the Company currently expects net sales to be between $624 million and $628 million, which reflects the opening of nine new stores in 2012 and a low single digit comparable store sales increase.

On that basis, diluted earnings per share are projected to be in the range of $1.46 to $1.51 (using a weighted average diluted share count of approximately 19.4 million).

For the third quarter of fiscal year 2012 ending October 27, 2012, the Company currently expects net sales to be between $145 and $147 million, which reflects a low single digit comparable store sales increase. The Company projects diluted earnings per share in the range of $0.24 to $0.26 (using a weighted average diluted share count of approximately 19.4 million).

For the fourth quarter of fiscal year 2012 ending February 2, 2013, a fourteen week quarter compared to the thirteen week fourth quarter of fiscal 2011, the Company expects net sales to be between $217 million and $219 million, which reflects a low single digit comparable store sales increase.

The Company projects diluted earnings per share to be in the range of $0.62 to $0.65 (using a weighted average diluted share count of approximately 19.5 million).

Gordmans 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 décor, gifts, designer fragrances, fashion jewelry, bedding and bath, accent furniture and toys.

Gordmans Stores Inc