Express reports Q3 results, issues downside guidance:
- Reports Q3 (Oct) earnings of $0.15 vs. $0.13 Capital IQ Consensus, EPS includes a $0.04 tax benefit; revenues rose 27% year/year to $506.1 mln vs the $497.3 mln Capital IQ Consensus.
- Comparable sales (including e-commerce sales) decreased 8% vs. negative high single to low double digit guidance, compared to a 6% increase in 3Q15.
- E-commerce sales increased 15% to $96.3 million.
- Merchandise margin declined by 340 basis points driven by increased promotional activity.
- Issues downside Q4 guidance: Sees Q4 EPS of $0.26 to $0.30 vs. $0.55 Capital IQ Consensus; sees Comparable Sales negative low double digits vs ests near -8%.
- "We expect the holiday season to remain challenging as mall traffic and a highly promotional retail environment continue to be headwinds. That being said, we believe our focus and execution against our key priorities, which include driving improved profitability through a balanced approach to growth, elevating our brand and customer experience, investing in the growth and development of our associates and achieving the benefits from our systems implementations, will position our Company to create shareholder value over the long term."
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