Gordmans Stores, Inc.

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Gordmans Stores, Inc. Announces Fourth Quarter 2012 Results

OMAHA, NE -- (Marketwire) -- 03/25/13 -- Gordmans Stores, Inc. (NASDAQ: GMAN), an Omaha-based apparel and home décor retailer, today announced results for its fourth quarter (fourteen weeks) and fiscal year (fifty-three weeks) ended February 2, 2013.

Fourth Quarter Highlights

  • Net sales increased 9.4% to $202.5 million compared to $185.1 million in the fourth quarter of fiscal 2011.
  • Diluted earnings per share were $0.41, which exceeded revised guidance of $0.35 - $0.37.

Fiscal Year 2012 Highlights

  • Net sales increased 10.2% to $607.7 million compared to $551.5 million in fiscal year 2011.
  • Nine new stores were opened in 4 new markets and 2 new states in fiscal 2012, a 12% expansion in the store base.

"Our fourth quarter sales performance was driven primarily by contributions from the nine stores opened in fiscal 2012, partially offset by a comparable store sales decline of 4%," commented Jeff Gordman, President and Chief Executive Officer. "While we are disappointed with our recent results, including a slow start to fiscal 2013, we believe that the strategic initiatives that we have put in place, in concert with the change in our senior leadership team, will produce improved comparable sales as the year progresses. In addition, we will continue our expansion strategy with the opening of 10 new stores in a combination of new and existing markets."

Fourth Quarter Financial Results
Net sales for the fourteen weeks ended February 2, 2013 increased 9.4% to $202.5 million from $185.1 million for the thirteen weeks ended January 28, 2012. Comparable store sales for the thirteen week period ended January 26, 2013 fell by 4.1% versus a 2.1% comparable store sales increase for the thirteen week period ended January 28, 2012. Gross profit increased 5.5% to $78.4 million, or 38.7% of net sales, from $74.3 million, or 40.1% of net sales, in the fourth quarter of fiscal 2011. Selling, general and administrative expenses were $65.6 million, or 32.4% of net sales, compared to $58.0 million, or 31.3% of net sales, in the fourth quarter of fiscal 2011. Net income for the fourth quarter of fiscal 2012 was $7.9 million, or $0.41 per diluted share, compared to net income of $10.2 million, or $0.53 per diluted share in the fourth quarter of fiscal 2011.

Fiscal Year 2012 Financial Results
Net sales for the fifty-three weeks ended February 2, 2013 increased 10.2% to $607.7 million from $551.5 million for the fifty-two weeks ended January 28, 2012. Comparable store sales for the fifty-two week period ended January 26, 2013 decreased by 0.7%. Gross profit increased by 9.4% to $264.8 million, or 43.6% of net sales, from $242.0 million, or 43.9% of net sales, in the prior year. Selling, general and administrative costs were $226.7 million, or 37.3% of net sales, compared to $201.1 million, or 36.5% of net sales, in the prior year. Net income decreased by 6.5% to $23.5 million, or $1.21 per diluted share, compared to net income of $25.2 million, or $1.30 per diluted share in fiscal 2011.

Conference Call Information
A conference call to discuss fourth quarter financial results is scheduled for today, March 25, 2013 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 86 stores in 18 states. For more information about Gordmans, visit www.gordmans.com.

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 Company's 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.



                   GORDMANS STORES, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                        (in 000's except share data)

                                                   February 2,  January 28,
                                                       2013         2012
                                                   ------------ ------------
ASSETS                                              (Unaudited)
CURRENT ASSETS:
  Cash and cash equivalents                        $     40,824 $     35,413
  Accounts receivable                                     2,049        1,787
  Landlord receivable                                     8,787        9,939
  Income taxes receivable                                 1,300        2,805
  Merchandise inventories                                78,006       65,335
  Deferred income taxes                                   2,617        2,964
  Prepaid expenses and other current assets               6,552        5,239
                                                   ------------ ------------
    Total current assets                                140,135      123,482
PROPERTY AND EQUIPMENT, net                              45,966       34,507
INTANGIBLE ASSETS, net                                    1,992        2,078
OTHER ASSETS, net                                         3,033        2,546
                                                   ------------ ------------

TOTAL ASSETS                                       $    191,126 $    162,613
                                                   ============ ============


LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                                 $     34,211 $     36,034
  Accrued expenses                                       22,789       26,464
  Current portion of long-term debt                         189          655
                                                   ------------ ------------

    Total current liabilities                            57,189       63,153
                                                   ------------ ------------

NONCURRENT LIABILITIES:
  Long-term debt, less current portion                       --          189
  Deferred rent                                          21,997       14,914
  Deferred income taxes                                   9,236        6,604
  Other liabilities                                         316           30
                                                   ------------ ------------

    Total noncurrent liabilities                         31,549       21,737
                                                   ------------ ------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
  Preferred stock                                            --           --
  Common stock                                               19           19
  Additional paid-in capital                             52,461       51,327
  Retained earnings                                      49,908       26,377
                                                   ------------ ------------

    Total stockholders' equity                          102,388       77,723
                                                   ------------ ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $    191,126 $    162,613
                                                   ============ ============



                   GORDMANS STORES, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                        (in 000's except share data)

                          14 Weeks     13 Weeks      53 Weeks
                           Ended         Ended        Ended       52 Weeks
                        February 2,   January 28,  February 2,     Ended
                            2013         2012          2013     January 28,
                        (Unaudited)   (Unaudited)  (Unaudited)      2012
                        -----------  ------------  -----------  -----------
Net sales               $   202,460  $    185,148  $   607,692  $   551,476
License fees from
 leased departments           1,887         1,792        7,361        6,670
Cost of sales              (125,963)     (112,627)    (350,212)    (316,167)
                        -----------  ------------  -----------  -----------
Gross profit                 78,384        74,313      264,841      241,979
Selling, general and
 administrative
 expenses                   (65,563)      (58,012)    (226,710)    (201,084)
                        -----------  ------------  -----------  -----------
Income from operations       12,821        16,301       38,131       40,895
Interest expense               (115)         (155)        (481)        (610)
                        -----------  ------------  -----------  -----------
Income before taxes          12,706        16,146       37,650       40,285
Income tax expense           (4,765)       (5,939)     (14,119)     (15,112)
                        -----------  ------------  -----------  -----------
Net income              $     7,941  $     10,207  $    23,531  $    25,173
                        ===========  ============  ===========  ===========

Basic earnings per
 share                  $      0.41  $       0.54  $      1.23  $      1.32
Diluted earnings per
 share                  $      0.41  $       0.53  $      1.21  $      1.30

Basic weighted average
 shares outstanding      19,235,960    19,095,046   19,165,260   19,098,377
Diluted weighted
 average shares
 outstanding             19,448,582    19,360,879   19,405,218   19,370,290

Company Contact:
Mike James
Chief Financial Officer
(402) 691-4126

Investor Relations:
ICR, Inc.
Brendon Frey
(203) 682-8200

Source: Gordmans Stores, Inc.

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