Retail headwinds hurt Gordmans Stores Inc.’s bottom line.
The company posted a net loss of $1.6 million, or 8 cents a diluted share, from net income of $374,000, or 2 cents, in the year-ago quarter. Net sales slipped 2.6 percent to $142.2 million from $145.9 million, while comparable-store sales fell 5 percent.
Andy Hall, president and chief executive officer, said, “We experienced challenging store traffic consistent with general retail trends during the week leading up to Easter through the end of the first quarter. Despite the pressure on sales, we were able to deliver a loss per share in line with our guidance range due to proactive management of expenses.”
He said that the company was working with a consulting firm to conduct a comprehensive expense review, and have “identified significant potential cost-saving opportunities throughout the organization. We will begin implementing these initiatives in the second quarter and expect to start realizing savings in the fall season.”
For the second quarter, the company expects net sales to be between $139 million to $142 million, which also reflects a midsingle-digit decrease in comparable-store sales. It projected a loss per diluted share in the range of 25 cents to 29 cents.