Gordmans Stores Inc ( NASDAQ:GMAN ): stock plunged more than 27 % in premarket trade, due to weak outlook and downgrade.

Gordmans Stores Inc ( NASDAQ: GMAN ), stock of the company plunged more than 27 % after company reported quarterly earnings. Although earnings rose 14 % but announced weak outlook for the next quarter. Also, Wells Fargo downgraded company stock from outperform to market perform and lowered its price target to $16-$17 from $17-$19.

Below is the news release:


Gordmans Stores Inc.'s (GMAN) fiscal first-quarter earnings rose 14%, but the regional discount retailer gave a disappointing forecast.

Gordmans, a Midwestern discount retailer that competes with the likes of TJX Cos. (TJX) in selling low-price, name-brand clothing and home decor, predicted current-quarter results below the consensus view. It projected earnings of 10 cents to 11 cents a share on revenue of $116 million to $117 million, versus the respective 20 cent and $123 million estimates from a survey of analysts by Thomson Reuters.

It also lowered its outlook for the year to $1.18 to $1.23 in earnings per share on $553 million to $557 million. In March, it had predicted $1.30 to $1.35 a share and $563 million to $571 million.

For the quarter ended April 30, the company posted a profit of $7.3 million, or 38 cents a share, from $6.4 million, or 39 cents a share, a year earlier. The latest period included 19% more shares outstanding. Revenue increased 5.2% to $117.7 million.

In March, the company predicted earnings of 34 cents to 36 cents a share on revenue of $119 million and $121 million.

Gross margin rose to 47.5% from 47%.
Tags: ,

About author

Make it happen !!


Leave a Reply