Express beats by $0.02, reports revs in-line; comparable sales -4% y/y; guides Q3 EPS below consensus; reaffirms FY18 EPS above consensus
- Reports Q2 (Jul) earnings of $0.01 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of ($0.01); revenues fell 5.2% year/year to $478.5 mln vs the $474.11 mln Capital IQ Consensus.
- Comparable sales (including e-commerce sales) decreased 4%, compared to an 8% decrease in the second quarter of 2016.
- Closed 40 retail stores, 19 of which were converted to outlets, and opened 4 new outlet stores, as part of continued focus on optimizing the store footprint
- Co issues downside guidance for Q3, sees EPS of 0.06-0.10 vs. $0.11 Capital IQ Consensus Estimate.
- Comparable Sales Negative low single digits.
- Co reaffirms guidance for FY18, sees EPS of 0.41-0.48, excluding non-recurring items, vs. $0.42 Capital IQ Consensus Estimate.
- Comparable Sales Negative low single digits.
- Mr. Kornberg continued, "As we look ahead to the second half of the year, we are optimistic about our ability to drive further improved performance in a transforming retail industry. We expect the momentum of our initiatives to continue to build and contribute more meaningfully. Our marketing efforts are resulting in improved trends in engagement and we believe they will drive increased customer acquisition and retention. We expect e-commerce sales growth to remain solid and store performance to sequentially improve, driven in part by our expanded omni-channel capabilities. We remain focused on managing our costs and see clear opportunities to enhance the overall efficiency of our business. Our balance sheet remains strong with more than $170 million in cash and no debt, and we continue to expect to generate solid cash flow. Our confidence in our strategy and conviction in our long-term opportunity remains resolute and we are committed to driving shareholder value."
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