Why Gordmans Stores Shares Tumbled
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Gordmans Stores 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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The article Why Gordmans Stores Shares Tumbled originally appeared on Fool.com.Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.