Express, Inc. (NASDAQ: EXPR)
Express reported fiscal 2018 third quarter results before markets opened on Thursday, November 29.
The U.S. fashion apparel retailer beat earnings and revenue estimates, but slashed its fourth quarter guidance citing disappointing traffic to its stores.
$EXPR stock lost more than 12% in pre-market hours, trading near a low of $6.28. Shares of the company are currently in the bear market territory having shed 35% since hitting a high of $11.68 in September.
EXPR Earnings & Outlook
Express walked away with net income of $8.0 million, or $0.11 per share, compared with net income of $6.0 million, or $0.08 per share, in the third quarter of last year. Net sales came to $515 million, an increase of 2% from $503.4 million year over year. Analysts were expecting adjusted earnings of $0.10 per share on revenue of $505.5 million according to FactSet data.
The Ohio-based company said identical-store sales – a closely watched industry metric that evaluates demand at stores opened for at least 12 months – were flat during the three months to November 3. Analysts had estimated that identical-store sales would decrease by 0.2%.
Looking ahead, Express sees adjusted EPS in the range of $0.11 to $0.20, way below average consensus of $0.31 per share. The company also expects identical-store sales to go down by between 5% and 7%, while analysts predict they will be flat.
Express CEO Comments
David Kornberg, president and chief executive of the company said, “We entered the holiday season positioned to succeed with increased newness as compared to last year. However, sales to date in November have been below our expectations. The apparel specialty retail environment continues to be highly promotional and our traffic has been challenging.
“While the majority of the quarter is still in front of us, we are revising our guidance to reflect a more cautious stance given recent unexpected sales trends. Our financial position remains sound and we continue to have long-term confidence in our brand and business. We remain committed to driving shareholder value, which is most evident in our share repurchase activity over the past year.”
Express, Inc. Profile
Express, Inc. operates as a specialty apparel and accessories retailer. It offers apparel and accessories for women and men between 20 and 30 years across various aspects of lifestyles, including work, casual, jeanswear, and going-out occasions. The company sells its products through its e-commerce Website, express.com; mobile app; and franchisees Express locations in Latin America.
As of February 3, 2018, it operated 490 primarily mall-based retail stores in the United States and Puerto Rico, as well as 145 factory outlet stores. The company was formerly known as Express Parent LLC and changed its name to Express, Inc. in May 2010. Express, Inc. was founded in 1980 and is headquartered in Columbus, Ohio. – Yahoo Finance