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What: Shares of Gordmans Stores (NASDAQ:GMAN) were getting marked down by investors today, falling as much as 11%.
So what: The department-store chain missed badly on the bottom line, coming up with a profit of $0.06 per share, well below estimates of $0.13. Revenue, meanwhile, was in line with estimates, up 5.8% to $151.3 million, but same-store sales fell 6.1%. An addition of 10 new stores in the first nine months of the year helped lift overall sales, and management noted an improvement in same-store sales in October, though the rate through the quarter was below its projections.
Now what: Guidance also came in below expectations for the all-important holiday quarter, as the company expects sales of just $204 million to $206 million, below estimates of $214.9 million, and a mid-single-digit decline in comparable sales. Earnings guidance for the current quarter was even worse as Gordmans sees a per-share profit of $0.11-$0.14 against estimates of $0.37. Its full-year outlook was similarly weak. With falling comps and disappointing guidance, investors may want to tread carefully with Gordmans.
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