Garment Brand Express Changed From Profit To Loss In The First Quarter

According to the world clothing shoes and hats net, American large chains

Retailer Express Inc. (NYSE:EXPR) had a slight improvement in sales in the first quarter, but its performance was poor.

It is expected that the group has sharply lowered its outlook for the whole year.

The reaction of investors, like the previous four quarterly reports, has been largely evacuated, resulting in a sharp drop of nearly 25% in the pre trading session of the group.

In the first quarter of April 29th, the same store sales of Express Inc. fell 10%, down from 13% in the four quarter.

Net sales decreased by 7.1% to 467 million US dollars per year, basically reaching the combined FactSet us forecast of $467 million 700 thousand.

E-commerce continued to achieve a strong growth of 27%, and sales of US $97 million 600 thousand accounted for 21% of the group's total.

The president and chief executive, David Kornberg, expressed satisfaction with the recent progress of his business in the earnings report.

C. L. King & Associates research analyst Steven Marotta believes that a greater reason for the weaker sales of Express Inc. is the decline in market traffic rather than product problems.

Steven Marotta to

The rapid growth is evidence. When interviewed, he pointed out that "if their product is not right, people will not buy it online."

During the period, the group closed 4 stores, and there are 652 stores in the US and Canada as of the end of the season. In the current financial year, the group will end all the 17 stores in Canada and convert 20 US retail stores into discount stores. The total number of stores in the end of the year will be reduced to 638.

Last season, Express Inc. changed from net profit to US $12 million 880 thousand from last year's net profit to US $4 million 530 thousand, and EPS also declined from $0.16 to -0.06 US dollars.

The adjusted EPS is -0.07 US dollars, and the loss is much larger than that of FactSet, which is expected to be US $-0.02.

For the current two quarter, Express Inc. expects the same store sales decline will further narrow to the median, but will continue to record losses, adjusted EPS EPS is expected to be -0.03 to $0.01, far less than the market expected $0.08.

The group adjusted the same store sales forecast from the previous year to the low single digit growth rate to a low figure figure. The net profit is expected to be reduced from $5200-5800 to $1600-2200.

For the first time, the group issued EPS 0.41-0.48 target adjusted by US $2016, which means that it will drop by 40.7%-49.4% compared with us $0.81 in fiscal year.

Even if the outlook is pessimistic, David Kornberg is still optimistic about the ability of Express Inc. to "improve the performance of the rest of the year" in its earnings report.

"The products of summer and autumn are exciting, and we expect that the momentum of e-commerce sales will continue, while store performance will improve," David Kornberg pointed out.

At the end of the first quarter, the group's stock was $287 million 500 thousand, up 2.2% from 281 million 300 thousand US dollars in the same period last year.

Gross margin declined by 620 basis points to 27.2% as a result of discounting activity, which was 33.4% in the same period last year.

By midday, Express Inc. (NYSE:EXPR) had dropped by 23.20% to 5.96 dollars in the intraday market, a new low since 2010. It also expanded the stock's decline in 2017 to 44.6% and 59% in the past 12 months.

Deutsche Bank AG (DBK.DE), Deutsche Bank lowered its target price from US $10 to US $8 before its quarterly performance, and the recommended rating remained "hold".

Analyst Paul Trussell said that Express Inc. can hardly touch sales and gross profit targets under the dual role of difficult retail sales environment and high intensity sales promotion.

Perry Pericleous Pericleous, chief financial officer of Express Inc., also expects that the passenger flow will continue to face challenges after the earnings analysts' meeting, and the retail environment will continue to have a large number of discount promotions.

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