Breaking Finance News

Gordmans Stores Announces Mixed Earnings and Special Dividend- Shares Halted (GMAN)

8601347118_b7d159bd1d_bGordmans Stores (NASDAQ: GMAN) announced earnings and a special dividend Wednesday morning. Shares are currently halted and will resume trading at 9:50 a.m. EDT.

First, the company reported second-quarter EPS of $0.05 versus the estimated $0.03, beating by $0.02. EPS were down 72 percent year over year. Revenue came in at $136.80 million versus the estimated $136.64 million. Sales were up 7 percent from the same period last year.

It expects third-quarter  EPS of $0.12-0.14 vs. analyst estimates of $0.21 and sales of $149.0 million-151.0 million. The street was expecting $157.50 million. If we use the high side of the numbers, that’s a 50 percent miss and a 4.7 percent miss respectively.

“We delivered comparable store sales that were consistent with expectations despite some continued headwinds and represented a meaningful improvement from the trend we experienced in the first quarter of 2013. At the same time, our bottom line results were ahead of our guidance even as we had to increase our markdown cadence to clear seasonal product and better align inventory levels heading into the second half of the year,” commented Jeff Gordman, President and Chief Executive Officer. “We believe that the adjustments we’ve made, and continue to make, to our merchandise assortments, combined with the rollout of our loyalty program, have positioned us to deliver further improvements over the remainder of fiscal 2013. In addition, we will open three stores next month for a total of 10 new stores this year, at which point we will have 93 locations in 19 states.”

The company also announced that it will pay a special $3.60 cash dividend payable to shareholders of record on September 9. Finally, it said that it’s line of credit was increased for $60 million to $80 million.

[stock-tools exchange="NASDAQ" symbol="GMAN" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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