Profits tumble during Express; tradesman issues diseased outlook
December 3, 2016 - fall Denim
Express reported a poignant dump in sales and gain in a third entertain while forecasting
that distinction for a critical holiday deteriorate would be many weaker than final year.
The results, announced Thursday, sent a retailer’s shares tumbling, shutting during $10.64, down
$2.72 or 20.4 percent.
The tradesman pronounced it warranted $11.6 million, or 15 cents per share, for a 13 weeks that ended
Oct. 29, down from $26.3 million, or 31 cents per share, for a same duration in 2015. Sales fell 7
percent to $506.1 million. The many new formula embody a taxation advantage of 4 cents per share.
The formula for a many new entertain missed researcher estimates of 17 cents per share.
Comparable-store sales, deliberate a pivotal indicator of a retailer’s strength, fell 8 percent
during a quarter, a association said.
For a fourth quarter, a association pronounced comparable-store sales would be down low double digits
on a commission basis. Last year, comparable-store sales rose 4 percent.
“As we are aware, we only finished Black Friday week, that was unsatisfactory and reflected an
intensely promotional sell landscape,” David Kornberg, a company’s presient and CEO, told
analysts on a discussion call. “While a infancy of a entertain is still in front of us, and we
believe we have a right collection and selling plan, we are holding a discreet mount that is
reflected in a guidance.”
Warm continue and a promotional sourroundings were among a factors explaining a weak
results, he said.
Denim dresses and boots achieved better, though formula for skirts and infrequent wear were
tougher, he said. For men, suits, tops, ties and accessories achieved well.
The association foresee distinction of $20 million to $23 million, or 26 to 30 cents per share,
compared with $56.1 million, or 67 cents per share, during a same duration final year.
On a and side, a association pronounced e-commerce sales for a entertain rose 15 percent in the
quarter to $96.3 million.
“E-commerce was a splendid mark in a quarter,” Kornberg said.