Omaha, Neb. – Gordman’s Stores reported declining net income even as net income grew in the third quarter of fiscal 2013. Net income for the third quarter of fiscal 2013 was $1.1 million, down 72.5% from net income of $4 million in the third quarter of the prior year.
Meanwhile, net sales grew 5.8% to $151.3 million from $143.1 million. A same-store sales decrease of 6.1%, as well as an increase in sales, general and administrative costs, may have negatively impacted net income. During the quarter, Gordman’s opened three new stores in two new markets and one existing market.
For the fourth quarter of fiscal year 2013, the company currently expects net sales to be between $204 and $206 million, which reflects a mid-single digit same-store sales decrease. For the fiscal year 2013, the company expects net sales to be between $623 million and $625 million, which reflect a mid-single digit same-store sales decrease.
"Third quarter net sales in total were in line with expectations, driven by the 10 new stores that we opened throughout the first nine months of the year,” said Jeff Gordman, president and CEO. “While same-store sales for the third quarter were below expectations, trends improved in October, with same-store sales even with that of a year ago. This improvement was primarily attributable to the initiatives we put into place in the first nine months of the year, including the implementation of our marketing and merchandising strategies as well as the rollout of our loyalty program. Moreover, we were aggressive with our markdown cadence during the quarter in our ongoing efforts to position our inventory levels ahead of the critical holiday selling season."