The value of small cap stock for retailer Gordmans Stores, Inc. (NASDAQ:GMAN) fell sharply on Friday, despite an increase in earnings, after the company cut its full-year revenue outlook, Bloomberg reports.
According to the news source, the Nebraska-based company reported on Friday that it took in $3.5 million, or 18 cents per share, in the quarter ended July 28, compared with earnings of $2.9 million, or 15 cents per share, in the same period last year. Overall revenue jumped 10 percent to $128.2 million from $117 million – lower than the $130.9 million Wall Street analysts had predicted.
Things turned sour for Gordmans when it announced it cut its projected revenue to between $624 million and $628 million, lower than the previous estimate for between $629 million and $643 million. Now, third-quarter earnings are expected to be 24 cents to 26 cents per share on revenue as high as $147 million. The company's fourth quarter outlook appears to be more promising, with expected earnings of as much as $219 million.
Despite the moderate quarterly improvement, the slashed full-year forecast sent shares down by 18.8 percent to $16.78 each as of 10:48 a.m. on August 30.