Express lowers outlook after challenging Christmas trading

Updating its fourth quarter and full year outlook, Express announced that comparable sales are currently expected to be in the range of negative 1 percent to negative 2 percent and net income to be in the range of 24.5 to 26 million dollars for the fourth quarter. Diluted EPS is expected to be in the range of 0.31 dollar to 0.33 dollar on 79.2 million weighted average shares outstanding. Comparable sales for the full year are expected to be negative 4 percent. Net income is expected to be in the range of 14.3 to 15.8 million dollars or 0.18 dollar to 0.20 dollar per diluted share.

Commenting on the updated outlook, David Kornberg, Express, Inc.'s President and CEO, said in a media release: “The fourth quarter was off to a positive start in November and early December, however the key weeks leading up to Christmas were disappointing. Our performance during December was most challenging in our retail stores, where traffic was worse than expected. On a positive note, January to date sales have stabilized, improving relative to the December trend. That said, based on our holiday performance, we are lowering our fourth quarter and full year 2017 outlook for comparable sales and EPS."

Adjusted net income for the year is expected to be in the range of 26 to 27.5 million dollars or 0.33 dollar to 0.35 dollar per diluted share on 78.9 million shares outstanding. Adjusted net income, the company said excludes approximately 24.2 million dollars or 11.7 million dollars net of tax and 0.15 dollar per share, related to the exit of Canada.



Related news