Gordmans Stores, Inc (GMAN) saw its loss widen to $4.82 million, or $0.25 a share for the quarter ended Oct. 29, 2016. In the previous year period, the company reported a loss of $2.76 million, or $0.14 a share. Revenue during the quarter dropped 6.81 percent to $145.43 million from $156.05 million in the previous year period. Gross margin for the quarter contracted 57 basis points over the previous year period to 43.23 percent. Operating margin for the quarter stood at negative 4.84 percent as compared to a negative 2.28 percent for the previous year period.
Operating loss for the quarter was $7.03 million, compared with an operating loss of $3.56 million in the previous year period.
“We experienced a modest 160 basis point improvement in our sales trend versus the second quarter and delivered a diluted loss per share near the high-end of our guidance range,” commented Andy Hall, President and Chief Executive Officer. “While the declines in our top line have moderated, our overall business continues to underperform versus our long-term expectations. Therefore, we continue to manage our expense structure to better align with the challenging environment. Third quarter operating expenses were down $2 million as we started to benefit from certain cost savings initiatives implemented following our comprehensive expense review.”
For the fourth-quarter, Gordmans Stores projects revenue to be in the range of $197 million to $203 million. The company forecasts diluted earnings per share to be in the range of $0.01 to $0.06 for the fourth-quarter.
Operating cash flow remains negative
Gordmans Stores, Inc has spent $24.86 million cash to meet operating activities during the nine month period as against cash outgo of $11.79 million in the last year period. The company has spent $13.20 million cash to meet investing activities during the nine month period as against cash outgo of $10.71 million in the last year period.
Cash flow from financing activities was $39.53 million for the nine month period, up 66.67 percent or $15.81 million, when compared with the last year period.
Cash and cash equivalents stood at $8.44 million as on Oct. 29, 2016, down 4.77 percent or $0.42 million from $8.86 million on Oct. 31, 2015.
Working capital drops significantly
Gordmans Stores, Inc has witnessed a decline in the working capital over the last year. It stood at $0.67 million as at Oct. 29, 2016, down 96.10 percent or $16.50 million from $17.17 million on Oct. 31, 2015. Current ratio was at 1 as on Oct. 29, 2016, down from 1.10 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 56 days for the last year period. Days sales outstanding were almost stable at 7 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 85 days for the quarter compared with 147 days for the previous year period. At the same time, days payable outstanding went down to 96 days for the quarter from 99 for the same period last year.
Debt increases substantially
Gordmans Stores, Inc has witnessed an increase in total debt over the last one year. It stood at $85.47 million as on Oct. 29, 2016, up 31.51 percent or $20.48 million from $64.99 million on Oct. 31, 2015. Total debt was 31.10 percent of total assets as on Oct. 29, 2016, compared with 22.46 percent on Oct. 31, 2015. Debt to equity ratio was at 3.76 as on Oct. 29, 2016, up from 1.91 as on Oct. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
