Gordmans Stores Inc., the Omaha, Neb.-based value retailer of apparel and home decor, reduced its second-quarter loss more than expected but was unable to meet revenue estimates for the period.
In the three months end Aug. 1, the net loss was pared to $3 million, or 16 cents a diluted share, from $3.2 million, also 16 cents, in the year-ago period.
Eliminating a 6-cent charge related to early extinguishment of debt, adjusted earnings per share was 9 cents, 5 cents better than the consensus estimate of analysts.
Sales rose 1.7 percent to $143.4 million from $141 million, below the $145.5 million expected, on average by analysts. Gross margin rose to 43.8 percent of sales from 42.3 percent as markdowns were reduced from year-ago levels.
Same-store sales, including leased areas, declined 1.6 percent.
Andy Hall, president and chief executive officer, said the drop in comps included a 1 percent drop attributable to the shift in the sales-tax holiday into August from July.
“Heading into the back half of the year, we are pleased with our inventory content as we accelerated back-to-school receipts versus last year to be better positioned to capture August sales,” Hall said.
Inventories were up 23.7 percent, to $118.9 million, from year-ago levels.
Gordmans expects third-quarter revenues of between $153 million and $156 million, with same-store sales flat to up at a low-single-digit rate. Gross margin is expected to continue to improvement. Earnings guidance are for a diluted loss of between 12 and 15 cents, higher than the 10-cent loss expected by analysts.
Shares closed at $4.40, down 2 cents or 0.5 percent, as U.S. equities tumbled to end the week.
Hall noted that, in addition to its recent debt refinancing, the company opened its e-commerce site at gordmans.com, enabling shoppers throughout the U.S. to buy from the retailer for the first time.
For the first half, the net loss was reduced to $2.7 million, or 14 cents a diluted share, from $3.9 million, or 20 cents in the first six months of 2014. Revenues rose 1.9 percent t $289.4 million.