Gordmans Stores falls as co. cuts 3Q, 4Q forecasts
OMAHA, Neb. -- Shares of Gordmans Stores slid more than 24 percent on Monday, its biggest ever one-day drop, as the clothing and home decor company lowered its third and fourth-quarter financial forecasts because of a sales slowdown.
Gordmans said Monday that its revenue at stores open at least a year fell 2.1 percent for the third quarter through Sept. 29. This metric is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
The Omaha, Neb., company says it now anticipates third-quarter earnings of 18 cents to 20 cents per share on revenue between $142 million and $144 million. Its prior guidance was for earnings of 24 cents to 26 cents per share on revenue in a range of $145 million to $147 million.
Analysts polled by FactSet anticipate earnings of 25 cents per share on revenue of $146.4 million.
For the fourth quarter ending Feb. 2 _ which includes the critical holiday shopping season _ Gordmans expects revenue at stores open at least a year to be flat. The retailer now foresees fourth-quarter earnings of 58 cents to 61 cents per share on revenue between $213 million and $215 million. The company previously predicted earnings of 62 cents to 65 cents per share on revenue in a range of $217 million to $219 million.
Wall Street expects earnings of 63 cents per share on revenue of $216.4 million, on average.
Shares of Gordmans Stores Inc. fell $4.50, or 24.4 percent, to $13.95 in afternoon trading. Over the past year, the stock has traded in a range of $11.18 to $22.86.
The company operates 83 stores in 18 states.