Boston, MA 08/27/2014 (wallstreetpr) – Express, Inc. (NYSE:EXPR)’s 2Q2014 failed to compare favorably with the same period last year. However, the specialty apparel retailer managed to exceed earnings estimates for the latest quarter, which also saw the management up their outlook for 2014. Profit dropped 59% in the latest quarter compared with last year.
The company is troubled like most other retailers because of the weak consumer spending and a decline in traffic to stores. Nonetheless, the management said they have plans to turnaround the business, and they expect the future to offer greater inspiration to their shareholders.
Shares of Express, Inc. (NYSE:EXPR) were up more than 11% in the morning session, signaling positive reception for the 2Q results.
Executive comment
The company said that lower sales and weak profit margins were responsible for the steep decline in profit on a year-over-year basis. The company’s CEO, Michael Weiss, observed that it was pleasing that they managed to achieve some progress in the quarter despite the difficult retail environment. He cited that exceeding their projections in the latest quarter suggests the start of performance improvement in the business.
For the quarter, Express, Inc. (NYSE:EXPR) earned a net income of $6.87 million or $0.08 a share. That was sharply down from net income of $16.91 million or $0.20 a share. However, the figures in the latest quarter were better than what analysts estimated on the average – breakeven earnings per share. As for the revenue, the retailer reported 2% decline in net sales to $481.42 million, down from $490.08 million in the prior year. However, as happened with the earnings, revenue in the latest quarter surpassed the consensus estimate of $457.10 million.
Bullish outlook
Buoyed with the 2Q progress, Express, Inc. (NYSE:EXPR) provided bullish forecast for the current quarter and fiscal 2014. The management expects net income in the band of $11-$15 million or EPS to come in the range of $0.13-$0.18. That compared with the consensus estimate of $0.16. For the year, EPS is expected in the range of $0.85-$0.95, above the previous projection of $0.74-$0.90. Analysts on the average expect full-year EPS of $0.81.
