Men’s and women’s clothing retailer Express (EXPR) reported its fiscal 2016 first quarter earnings with not too overwhelmingly positive results.
Quarterly revenue came in at $502.9 million, which were essentially flat compared to net sales of $502.4 million in the fiscal 2015 first quarter, and comparable sales that include e-commerce sales decreased 3%.
The company reported net incomes of $19 million, or $0.25 per share. To put these results into context, Express' guidance issued in March called for comparable-sales growth in the low-single-digit percentage range and adjusted net income of $20 million to $22 million, or $0.25 to $0.28 per share.
Express CEO David Kornberg remained positive as he highlighted the fact that his company delivered healthier merchandise margin, gross margin, and adjusted earnings per share within its guidance range – it just happened to be on the lower end.
“We believe that our product is on trend and we are providing customers with engaging experiences across each of our channels,” Kornberg stated. “That being said, our second quarter and full year guidance reflect the challenges presented by the current retail environment.”
More specifically for the second quarter, Express anticipates comparable sales in the “negative mid-single-digit percentage range” and net income of $12 million to $15 million, or $0.15 to $0.19 per share.
For the full-year 2016, Express also reduced its guidance to call for comparable sales to be in the “negative mid- to low-single-digit range” compared to previous guidance for positive comps in the “low single digits,” and adjusted diluted EPS of $1.41 to $1.54 compared to $1.56 to $1.71 previously.
Relative to the current state of the retail market, Express performed well. Just in May alone a number of retailers reported poor quarters. Nordstrom Inc. (NYSE:JWN) missed on both its earnings and revenues for its first quarter of fiscal 2016.
L Brands Inc. (NYSE:LB), the company that owns Victoria Secret, decreased its guidance for 2016 full-year adjusted earnings per share in its first quarter of fiscal 2016.
In its first quarter of fiscal 2016 earnings report, Gap Inc. (NYSE:GPS) announced that it will close 75 of its Old Navy and Banana Republic stores outside of North America. This includes all 53 Old Navy stores in Japan, as well as several Banana Republic storefronts around the globe.
Yesterday, shoe retailer DSW Inc. (DSW) had shares down almost 12% in mid-morning trading after the company reported disappointing first quarter financial results, missing on both earnings and revenues.
Express Inc. has a Zacks Rank #3 (Hold).
GAP INC (GPS): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
DSW INC CL-A (DSW): Free Stock Analysis Report
EXPRESS INC (EXPR): Free Stock Analysis Report
L BRANDS INC (LB): Free Stock Analysis Report
Original post
Zacks Investment Research