US Apparel Retailer Express Plunged 26% In The Two Quarter

U.S.A

In the two quarter of the Express Inc., the group's share price fell by 26%, hitting a 11.97 year low.

In the two quarter of July 30th, Express Inc. sales (including e-commerce) plunged 8%, far behind.

For its already very low expectations, it fell by 4.7%, while the group only expected a decline in the median figure at the beginning of the season, a 7% increase in the same period last year.

Channel sales also fell 7% to 70 million 100 thousand dollars over the same period.

David Kornberg Kornberg, the group's chief executive, expressed disappointment at the failure of the two quarter's sales and earnings. He pointed out that there was a lack of clear direction in the period, but the autumn series would improve and reflect the main trend.

Overall sales in the two quarter amounted to US $504 million 800 thousand, less than US $521 million in market expectations, down 5.8% from US $535 million 600 thousand a year ago.

Unsalable products also led to an increase in promotional sales, dragging down the gross margin of commodity sales by 200 basis points, and gross margins also plummeted to 33.1% from 29.9% in the same period last year, a drop of 320 basis points.

Net profit dropped by 51.8% to 10 million 100 thousand dollars a year, and the diluted profit from $0.25 to $0.13 per share. The market and group itself expected to be 0.17 US dollars and US $0.15-0.19 respectively.

David Kornberg pointed out that the inventory level was satisfactory only when it entered the autumn. As of July 30th, the total inventory value of the group was $256 million 600 thousand, a decrease of 5.7%. compared with the same period last year.

Express Inc. expects that the diluted earnings per share in the three quarter will be in the range of 0.09-0.15 dollars, less than half of the market expectation of US $0.32.

The adjusted annual profit per diluted share has been lowered to $1.00-1.14 from the previous 1.41-1.54 US dollar. The market expects us $1.46 and US $2015 in fiscal year 2015.

When the deadline was Express Inc., the shares fell 24.78% at 10:21 on Wednesday at 10:21 p.m. EDT, and the Guess Inc. Inc. (NYSE:GES), which was expected to announce its quarterly results after the launch, was also up to 7% by 12.05.