Express Q3 comparable sales decline narrows

Express net sales for the thirteen weeks ended October 28, 2017 decreased 1 percent to 498.7 million dollars, while comparable sales including e-commerce sales decreased 1 percent, compared to an 8 percent decrease in the third quarter of 2016. Ecommerce sales for the quarter increased 23 percent year over year to 118.2 million dollars.

Commenting on the results, David Kornberg, the company’s President and CEO, stated in a media statement: “Our key initiatives continue to gain traction and contribute incrementally, which is driving improved trends in our results. We enter the important holiday season with positive momentum and are confident that our assortment and fashion are resonating well with our customers based on the continued strength in our e-commerce business and improving store performance.”

The company’s merchandise margin improved by 30 basis points, driven by sourcing-related cost savings, partially offset by the highly promotional environment. Operating income was 11.2 million dollars compared to 15.1 million dollars in the third quarter of 2016.

Fourth quarter and full year outlook

The company said that the fifty-third week is in the fourth quarter and is expected to represent approximately 0.04 dollar in diluted EPS. For the fourteen week period ended February 3, 2018, the company expects comparable sales to be positive low single digits compared to 13 percent decline last year, net income is expected to range between 32 to 35 million dollars and diluted EPS between 0.40 to 0.44 dollar compared to 22.8 million dollars net income and 0.29 dollar diluted EPS in the same quarter last year.

For the full year, comparable sales are expected to remain negative low single digits against 9 percent decrease last year. Net income for the year is expected to range between 22 to 25 million dollars and diluted EPS between 0.28 to 0.32 dollars against net income of 57.4 million dollars and diluted EPS of 0.73 dollar last year. Adjusted net income is anticipated to range between 34 to 37 million dollars and adjusted diluted EPS between 0.43 to 0.47 dollars against 64.3 million dollars adjusted net income and 0.81 dollar adjusted diluted EPS last year.

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