On Mar 28, 2013, Zacks Investment Research downgraded
Gordmans Stores, Inc.
) to a Zacks Rank #5 (Strong Sell).
Why the Downgrade?
Gordmans Stores has been witnessing sharp downward estimate
revisions after the company reported disappointing fourth-quarter
fiscal 2012 results and cited a soft start to fiscal 2013.
This department store retailer declared results on Mar 25,
2013, wherein earnings of 41 cents a share fell sharply by 22.6%
from 53 cents earned in the prior-year quarter. However,
quarterly earnings managed to exceed the Zacks Consensus Estimate
of 36 cents. For fiscal 2012, earnings came in at $1.21 per share
down 6.9% from $1.30 delivered in the prior year due to higher
Net sales of $202.5 million fell short of the Zacks Consensus
Estimate of $207 million, but it increased 9.4% from the year-ago
quarter. Comparable-store sales dropped 4.1% compared with an
increase of 2.1% witnessed in the prior-year quarter.
Sluggish comps growth and a challenging economic environment
remain a drag on the quarter. Consequently, we are witnessing a
fall in the Zacks Consensus Estimates. The Zacks Consensus
Estimate for the first and second quarters of fiscal 2013 dropped
72.7% and 20%, to 12 cents and 16 cents a share, respectively,
over the past 7 days.
Moreover, for fiscal 2013 and 2014, the Zacks Consensus
Estimate fell by 21.9% and 21.8% to $1.07 and $1.29 per share,
respectively, over the same time frame.
Other Stocks to Consider
Not all stocks in non-food retail, wholesale sector are
performing as disappointingly as Gordmans Stores. Other stocks
worth considering include
Lumber Liquidators Holdings Inc.
), all of which carry a Zacks Rank #1 (Strong Buy).
GORDMANS STORES (GMAN): Free Stock Analysis
LUMBER LIQUIDAT (LL): Free Stock Analysis
MACYS INC (M): Free Stock Analysis Report
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