Express reports 3 percent rise in 2013 net sales

REPORT_ Announcing its results for the financial year 2013 and fourth quarter, Express said that its net sales increased 3 percent to 2.2 billion dollars. Comparable sales including e-commerce increased 3 percent while comparable sales in the prior year period were flat. E-commerce sales

increased 25 percent to 340.6 million dollars in 2013 compared to last year's 53-week period. Gross margin was 32.3 percent of net sales compared to 34.4 percent in 2012.

In the fourth quarter ended February 1, 2014, net sales were 715.9 million dollars. Comparable sales (including e-commerce sales) increased 1 percent compared to a 1.5 percent increase in last year's fourth quarter. E-commerce sales increased 14 percent to 138.8 million dollars in the fourth quarter of 2013.

Said Michael Weiss, the company's Chairman and Chief Executive Officer, “Our fourth quarter results were within the range of our revised guidance but disappointing nonetheless given the strength of our collection across both genders.”

Adding further on the first quarter and full year 2014 guidance, Weiss noted, “The start of 2014 has nevertheless been extremely difficult, with traffic down significantly, negative comparable sales and the promotional environment remaining intense. Our full year projections anticipate a return to EPS growth in the back half of the year, but full year results will be impacted by a weak start to 2014 and de-leveraging associated with our buying and occupancy and SG&A expenses. We are working on a variety of initiatives to generate improved results and remain committed to driving long-term shareholder value.”

Gross margin as a percentage of net sales in the fourth quarter declined 300 basis points over last year's fourth quarter and represented 32 percent of net sales. Operating income was 85.4 million dollars, or 11.9 percent of net sales, compared to 111.4 million dollars, or 15.2 percent of net sales, in the fourth quarter of 2012.

Operating income was 214.3 million dollars, or 9.7 percent of net sales, compared to 251.6 million dollars, or 11.7 percent of net sales, in the prior year period. Prior year operating income included approximately 5.2 million dollars associated with the 53rd week. Net income was 116.5 million dollars, or 1.37 dollars per diluted share, compared to net income of 139.3 million dollars, or 1.60 dollars per diluted share, in 2012, with 2012's 53rd week contributing approximately 0.04 dollars per diluted share.