Piper Jaffray Raises Gordmans Stores' Q1 EPS

In a research report released earlier today, Piper Jaffray has increased Gordmans Stores Inc.'s GMAN Q1 EPS due following a positive Q4 and encouraging guidance. According to Piper Jaffray, “We remain buyers on GMAN following the company's solid Q4 earnings report which was ahead of expectations—with EPS at $0.53 vs. consensus of $0.50. In addition to Q4 operating margin expansion of approx. 60 bps, the company posted a solid +2.1% comp-store sales gain—a strong reversal from “flattish” trends in the prior three quarters. As it relates to Q1, we are raising our EPS from $0.40 to $0.41, the high-end of guidance of $0.40-$0.41. For CY12, management issued EPS guidance of $1.46-$1.51—bracketing the consensus mark of $1.48. We are encouraged with the positive momentum in the business with Q1 comps guided +LSD and continued strength of the new store fleet. With 9 new stores slated for CY12 (vs. 6 in CY11) and modest 2H comp guidance, we believe the initial EPS range could prove conservative.” Piper Jaffray maintains its Overweight rating and $21 PT on Gordmans Stores, which closed yesterday at $15.44.