Gordmans Stores (NASDAQ:GMAN): is a low price retailer which sells designer and fashionable wear at up to 60% less than department and specialty stores. The majority, 53%, of the company's total revenue comes from apparels. The remainder comes from home fashion and accessories. Gordmans focuses on differentiating itself from its competitors by offering large savings, a broad selection of fashion oriented apparel and goods, and a fun and entertaining shopping environment. Gordmans physicals stores are generally 50,000 square feet which tends to be far larger than other discount retailers such as TJ Maxx, Ross Stores (ROST), or Stein Mart (SMRT).
GMAN has pushed to expand its size in throughout the mid 2000s. The company enlarged its number of stores by 55%, or 23 new stores, between 2004 and 2008. It also acquired a series of national brands in order increase its youth lines. However, with only 68 stores, the company expects that it can increase the number of stores by 10% each year for the next several years.
The company's initial public offering of stock is filed on the NASDAQ and and occurred on August 4th, 2010. Its initial price range was $13-$15, but it priced below the range at $11. The company offered 5.4M, making the deal worth $59.4M. The lead underwriters of the deal were Piper Jaffray Companies (PJC) and Wells Fargo (WFC). The was acquired by the private equity firm Sun Capital in September 2008 for $56M. 40% of the returns from the IPO will go back to insiders.
Gordmans Stores has had relatively flat revenue for both 2009 and 2008 - $433M and $437M respectively. However, net income fell slightly from $5.4M in 2008 to $4.4M in 2009. This corresponds to a 19% drop. However, the company did experience an increase a 4.6% comparable same store sales growth.