UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): August 30, 2012
GORDMANS STORES, INC.
(Exact name of registrant as specified in its charter)
Delaware | 001-34842 | 26-3171987 | ||
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(IRS Employer Identification No.) |
12100 West Center Road
Omaha, Nebraska 68144
(Address of principal executive offices, zip code)
(402) 691-4000
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On August 30, 2012, Gordmans Stores, Inc. (the Company) issued a press release providing information regarding earnings for the thirteen and twenty-six week periods ended July 28, 2012. A copy of the press release is attached hereto as Exhibit 99.1.
The information, including Exhibit 99.1, in this Form 8-K is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this Form 8-K shall not be incorporated by reference into any filing under the Securities Act of 1933, except as shall otherwise be expressly set forth by specific reference in such filing.
Item 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
99.1 Press Release of Gordmans Stores, Inc. dated August 30, 2012.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GORDMANS STORES, INC. | ||||||
Date: August 30, 2012 | By: | /s/ Michael D. James | ||||
Name: | Michael D. James | |||||
Title: | Chief Financial Officer, Senior Vice President, Treasurer and Assistant Secretary |
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EXHIBIT INDEX
99.1 | Press Release of Gordmans Stores, Inc. dated August 30, 2012. |
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Exhibit 99.1
Gordmans Stores, Inc. Announces Second Quarter 2012 Results
Second Quarter Diluted EPS Improved to $0.18;
Second Quarter Net Sales Increased 9.6%;
Second Quarter Gross Profit Margin Increased 90 bps
Omaha, Nebraska (August 30, 2012) Gordmans Stores, Inc. (NASDAQ: GMAN), an Omaha-based apparel and home décor retailer, today announced results for its second quarter (thirteen weeks) and six month period (twenty-six weeks) ended July 28, 2012.
Second Quarter Highlights
| Net sales increased 9.6% to $128.2 million compared to $117.0 million in the second quarter of fiscal 2011. |
| Comparable store sales increased 0.1% over the second quarter of fiscal 2011. |
| Gross profit margin increased 90 basis points over the second quarter of fiscal 2011 to 45.8%. |
| Net income increased 20.7% to $3.5 million compared to $2.9 million in the second quarter of fiscal 2011. |
| Diluted earnings per share were $0.18. |
Six Month Highlights
| Net sales increased 11.7% to $262.2 million compared to $234.7 million for the six months ended July 30, 2011. |
| Comparable store sales increased 2.5% over the first half of fiscal 2011. |
| Gross profit margin increased 40 basis points over the same period last year to 46.6%. |
| Net income increased 13.5% to $11.6 million compared to $10.2 million in the first six months of fiscal 2011. |
We delivered an increase in net income in excess of 20% 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, commented Jeff Gordman, President and Chief Executive Officer. 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. With our comparable store sales performance of 0.1% for the second quarter and 2.5% year-to-date, we remain confident in our ability to achieve our existing earnings per share guidance of $1.46 to $1.51 for fiscal 2012, which will be driven by a modest single digit comparable store sales increase consistent with the level that we generated for the first half of the year.
Second Quarter Financial Results
Net sales for the thirteen weeks ended July 28, 2012 increased 9.6% to $128.2 million from $117.0 million for the same period last year, with comparable store sales increasing by 0.1%. Gross profit increased by 90 basis points, or 11.8%, to $58.7 million, or 45.8% of net sales, from $52.5 million, or 44.9% of net sales, in the second quarter of fiscal 2011. Selling, general and administrative costs were $52.9 million, or 41.3% of net sales, compared to $47.6 million, or 40.7% of net sales, in the second quarter of fiscal 2011. The Company reported a 20.7% increase in net income to $3.5 million, or $0.18 per diluted share (based on 19,470,133 weighted average dilutive shares outstanding), compared to net income of $2.9 million, or $0.15 per diluted share (based on 19,390,752 weighted average dilutive shares outstanding), in the second quarter of fiscal 2011.
Six Month Financial Results
Net sales for the twenty-six weeks ended July 28, 2012 increased 11.7% to $262.2 million from $234.7 million for the same period last year, with comparable store sales increasing by 2.5%. Gross profit increased by 40 basis points, or 12.7%, to $122.2 million, or 46.6% of net sales, from $108.4 million, or 46.2% of net sales, in the prior year. Selling, general and administrative costs were $103.4 million, or 39.4% of net sales, compared to $91.6 million, or 39.0% of net sales, in the prior year. The Company reported a 13.5% increase in net income to $11.6 million, or $0.60 per diluted share (based on 19,443,441 weighted average dilutive shares outstanding), compared to net income of $10.2 million, or $0.53 per diluted share (based on 19,320,445 weighted average dilutive shares outstanding), in the first twenty-six weeks of fiscal 2011.
Outlook
The Company expects a low single digit comparable store sales increase for the second half of the fiscal year, consistent with the comparable store sales increase experienced in the first half of the fiscal year. For the fiscal year ending February 2, 2013, a fifty-three week fiscal year compared to fifty-two week fiscal year 2011, the Company currently expects net sales to be between $624 million and $628 million, which reflects the opening of nine new stores in 2012 and a low single digit comparable store sales increase. On that basis, diluted earnings per share are projected to be in the range of $1.46 to $1.51 (using a weighted average diluted share count of approximately 19.4 million).
For the third quarter of fiscal year 2012 ending October 27, 2012, the Company currently expects net sales to be between $145 and $147 million, which reflects a low single digit comparable store sales increase. The Company projects diluted earnings per share in the range of $0.24 to $0.26 (using a weighted average diluted share count of approximately 19.4 million).
For the fourth quarter of fiscal year 2012 ending February 2, 2013, a fourteen week quarter compared to the thirteen week fourth quarter of fiscal 2011, the Company expects net sales to be between $217 million and $219 million, which reflects a low single digit comparable store sales increase. The Company projects diluted earnings per share to be in the range of $0.62 to $0.65 (using a weighted average diluted share count of approximately 19.5 million).
Conference Call Information
A conference call to discuss second quarter financial results is scheduled for today, August 30, 2012 at 4:30 p.m. Eastern Time. The conference call will be webcast live at http://investor.gordmans.com/events.cfm. A replay of this call will be available within two hours of the conclusion of the call and will remain on the website for one year.
About Gordmans Stores, Inc.
Gordmans (NASDAQ: GMAN) features a large selection of the latest name brands, fashions and styles at up to 60 percent off department and specialty store prices every day. The wide range of merchandise includes apparel for all ages, accessories, footwear, home décor, gifts, designer fragrances, fashion jewelry, bedding and bath, accent furniture and toys. Founded in 1915, Gordmans operates 81 stores in 18 states. For more information about Gordmans, visit www.gordmans.com.
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Safe Harbor Statement
Certain statements in this release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as guidance, expects, intends, projects, plans, believes, estimates, targets, anticipates, and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected net sales, net income, comparable store sales, diluted earnings per share, and store expansion, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are (1) changes in consumer spending and general economic conditions; (2) our ability to identify and respond to new and changing fashion trends, guest preferences and other related factors; (3) fluctuations in our sales and profitability on a seasonal basis; (4) intense competition from other retailers; (5) our ability to maintain or improve levels of comparable store sales; and (6) our successful implementation of advertising, marketing and promotional strategies.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including other risks, relevant factors and uncertainties identified in the Risk Factors section of the Companys Annual Report on Form 10-K for the fiscal year ended January 28, 2012, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
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GORDMANS STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in 000s except share data)
July 28, 2012 |
January 28, 2012 |
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(Unaudited) | ||||||||
ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
$ | 44,113 | $ | 35,413 | ||||
Accounts receivable |
2,315 | 1,787 | ||||||
Landlord receivable |
8,126 | 9,939 | ||||||
Income taxes receivable |
1,147 | 2,805 | ||||||
Merchandise inventories |
85,224 | 65,335 | ||||||
Deferred income taxes |
2,271 | 2,964 | ||||||
Prepaid expenses and other current assets |
6,730 | 5,239 | ||||||
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Total current assets |
149,926 | 123,482 | ||||||
PROPERTY AND EQUIPMENT, net |
41,382 | 34,507 | ||||||
INTANGIBLE ASSETS, net |
2,035 | 2,078 | ||||||
OTHER ASSETS, net |
2,613 | 2,546 | ||||||
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TOTAL ASSETS |
$ | 195,956 | $ | 162,613 | ||||
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LIABILITIES AND STOCKHOLDERS EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
$ | 56,848 | $ | 36,034 | ||||
Accrued expenses |
26,344 | 26,464 | ||||||
Current portion of long-term debt |
411 | 655 | ||||||
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Total current liabilities |
83,603 | 63,153 | ||||||
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NONCURRENT LIABILITIES: |
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Long-term debt, less current portion |
| 189 | ||||||
Deferred rent |
15,800 | 14,914 | ||||||
Deferred income taxes |
6,418 | 6,604 | ||||||
Other liabilities |
204 | 30 | ||||||
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Total noncurrent liabilities |
22,422 | 21,737 | ||||||
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS EQUITY: |
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Preferred stock |
| | ||||||
Common stock |
19 | 19 | ||||||
Additional paid-in capital |
51,940 | 51,327 | ||||||
Retained earnings |
37,972 | 26,377 | ||||||
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Total stockholders equity |
89,931 | 77,723 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 195,956 | $ | 162,613 | ||||
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GORDMANS STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in 000s Except Share Data)
13 Weeks Ended July 28, 2012 (Unaudited) |
13
Weeks Ended July 30, 2011 (Unaudited) |
26 Weeks Ended July 28, 2012 (Unaudited) |
26 Weeks Ended July 30, 2011 (Unaudited) |
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Net sales |
$ | 128,238 | $ | 117,020 | $ | 262,160 | $ | 234,699 | ||||||||
License fees from leased departments |
1,620 | 1,411 | 3,557 | 3,078 | ||||||||||||
Cost of sales |
(71,165 | ) | (65,947 | ) | (143,533 | ) | (129,344 | ) | ||||||||
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Gross profit |
58,693 | 52,484 | 122,184 | 108,433 | ||||||||||||
Selling, general and administrative expenses |
(52,898 | ) | (47,559 | ) | (103,384 | ) | (91,647 | ) | ||||||||
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Income from operations |
5,795 | 4,925 | 18,800 | 16,786 | ||||||||||||
Interest expense |
(123 | ) | (189 | ) | (248 | ) | (307 | ) | ||||||||
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Income before taxes |
5,672 | 4,736 | 18,552 | 16,479 | ||||||||||||
Income tax expense |
(2,127 | ) | (1,800 | ) | (6,957 | ) | (6,262 | ) | ||||||||
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Net income |
$ | 3,545 | $ | 2,936 | $ | 11,595 | $ | 10,217 | ||||||||
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Basic earnings per share |
$ | 0.19 | $ | 0.15 | $ | 0.61 | $ | 0.53 | ||||||||
Diluted earnings per share |
$ | 0.18 | $ | 0.15 | $ | 0.60 | $ | 0.53 | ||||||||
Basic weighted average shares outstanding |
19,136,076 | 19,165,207 | 19,115,650 | 19,120,820 | ||||||||||||
Dilutive weighted average shares outstanding |
19,470,133 | 19,390,752 | 19,443,441 | 19,320,445 |
Company Contact:
Mike James
Chief Financial Officer
(402) 691-4126
Investor Relations:
ICR, Inc.
Brendon Frey / James Palczynski
(203) 682-8200
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