Gordmans Stores Inc. (GMAN) Thursday reported an increase in profit for the second quarter, driven mainly by higher revenues and stronger margins. Earnings for the quarter were in line with estimates, but revenues fell short of expectations.
Going forward, the company provided a weak guidance for the third quarter and lowered its revenue guidance for the full year 2013. Following the news, shares of Gordmans plunged 13 percent in after hours trade on the Nasdaq.
The apparel and home decor retailer said its revenues for the quarter grew 9.6 percent to $128.2 million from $117.0 million last year. However, it fell short of analysts' consensus estimate of $131.2 million.
For the quarter, same store sales increased 0.1 percent over the second quarter of fiscal year 2011.
Gross margin, or gross profit as a percent of sales, advanced 90 basis points to 45.8 percent from last year.
Chief Executive Jeff Gordman said, "We delivered an increase in net income in excess of 20 percent for the second quarter of fiscal 2012, fueled by strong gross profit margins that increased by 90 basis points over the same period last year. We opened three stores and entered one new market, Indianapolis, during the second quarter. We will open two more stores next month in the Denver MSA for a total of 9 new stores for the year representing a 12% expansion of our store base."
The Omaha, Nebraska-based company's second-quarter profit improved to $3.5 million or $0.18 per share from $2.9 million or $0.15 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.18 per share. Analysts' estimates typically exclude special items.
Looking ahead, the company expects third-quarter earnings of $0.24 to $0.26 per share, and revenues of $145 million to $147 million. Analysts currently expect earnings of $0.29 per share on revenues of $151.24 million.
Further, the company continues to expects full-year 2013 earnings of $1.46 to $1.51 per share. Analysts currently expect earnings of $1.51 per share for fiscal year 2013.
However, the company lowered its fiscal year 2013 sales guidance to a range of $624 million to $628 million, from prior estimate of $629 million and $634 million. Analysts currently expect revenues of $634.54 million for the year.
GMAN closed Thursday's trading at $20.67, up $0.27 or 1.32%, on a volume of 0.3 million shares. The stock, however, lost $2.62 or 12.68% in after-hours trade.
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