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Express reports marginal improvement in Q1 net sales

By Prachi Singh

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Business

For the thirteen weeks to May 5, 2018, Express, Inc. reported net sales increased 1 percent to 479.4 million dollars, while comparable sales including ecommerce sales increased 1 percent, compared to a 10 percent decrease in the first quarter of 2017. Ecommerce sales increased 35 percent to 132.6 million dollars, and on a comparable sales basis, ecommerce sales increased 33 percent.

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Commenting on the results, David Kornberg, the company’s President and CEO said in a statement: “Our first quarter performance demonstrates that our strategy and holistic approach to driving improved sales and profitability is working. Comparable sales grew for the first time since late 2015, and for the second consecutive quarter we expanded our gross margin and increased earnings relative to the prior year.”

First quarter operating results at Express

Gross margin for the quarter improved 200 basis points to 29.9 percent of net sales compared to 27.9 percent in last year’s first quarter. The improvement was driven by a 90 basis point increase in merchandise margin and a 110 basis point decrease in buying and occupancy costs as a percentage of net sales.

Operating income was 2.8 million dollars compared to an operating loss of 6.7 million dollars in the first quarter of 2017. Operating loss in the first quarter of 2017 includes a 6.3 million dollars impact related to the exit of Canada. Net income was 0.5 million dollars or 0.01 dollar per diluted share compared to a net loss of 2.7 million dollars or 0.03 dollar per diluted share, in the first quarter of 2017. On an adjusted basis, net loss was 3.7 million dollars or 0.05 dollar per diluted share.

Express announces expectations for Q2 and FY18

The company notes that 2018 is a fifty-two week period as compared to a fifty-three week period in 2017. The fifty-third week was in the fourth quarter and contributed approximately 0.04 dollar in diluted EPS in 2017.

For the second quarter, Express expects comparable sales to be between negative 1 percent to positive 1 percent, net income to range between a loss of 1.5 million dollars to an income of 1.5 million dollars and diluted EPS to range between negative 0.02 dollar to positive 0.02 dollar.

For the full year, the company anticipates comparable sales to range between negative to positive 1 percent, net income between 28 to 35 million dollars and diluted EPS per share to range between 0.37 to 0.47 dollar.

Picture:Facebook/Express

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