Express, Inc. Provides Bus. Update, Reaffirms EPS Guidance for the Fourth Quarter & Full Year 2016 in Advance of the 19th Ann...
January 10 2017 - 6:45AM
Business Wire
In advance of its presentation at the 19th Annual ICR
Conference, Express, Inc. (NYSE: EXPR), a specialty retail apparel
company, today reaffirmed its earnings per share (EPS) guidance for
the fourth quarter and full year 2016 ending January 28, 2017,
based on its performance during the 2016 holiday season and its
expectations for the balance of the period.
David Kornberg, Express, Inc.'s president and chief executive
officer, commented: "Based on our holiday results, we are
reaffirming our fourth quarter and full year EPS guidance. Our
store performance continues to be impacted by challenging mall
traffic trends and a more promotional retail environment. However,
we remain pleased with our e-commerce sales performance, which
continues to trend positively year-over-year."
2016 Guidance:
Fourth Quarter:
Comparable sales are currently expected to be negative 13%. The
Company continues to expect net income to be in the range of $20 to
$23 million and diluted earnings per share to be in the range of
$0.26 to $0.30 on 78.8 million weighted average shares
outstanding.
Full Year:
Comparable sales are expected to be negative 9%. Net income is
expected to be in the range of $55 to $58 million, or $0.70 to
$0.74 per diluted share. Adjusted net income is expected to be in
the range of $62 to $65 million, or $0.78 to $0.82 per diluted
share on 79.1 million shares outstanding. Adjusted net income
excludes approximately $11.4 million, or $6.9 million net of tax
benefit, of non-core operating items related to an amendment to the
Times Square Flagship store lease.
Consistent with past practice, this guidance excludes any
additional non-core operating items that may occur.
The Company expects to report fourth quarter and full year 2016
results during the week of March 6, 2017.
ICR Conference:
The Company will present at the 19th Annual ICR Conference being
held at the JW Marriott Orlando Grande Lakes in Orlando, Florida on
January 10, 2017 at 4:00 p.m. Eastern Time (ET). David Kornberg,
president and chief executive officer, and Perry Pericleous, senior
vice president and chief financial officer, will host the
presentation and Mark Rupe, vice president of investor relations,
will be in attendance. The Company’s investor presentation will be
posted on the Express website by 7:00 a.m. ET on Tuesday, January
10, 2017 and the conference presentation will be webcast live and
available for replay for 30 days at www.express.com/investor.
About Express, Inc.:
Express is a specialty apparel and accessories retailer of
women's and men's merchandise, targeting the 20 to 30- year-old
customer. Express has more than 35 years of experience offering a
distinct combination of fashion and quality for multiple lifestyle
occasions at an attractive value addressing fashion needs across
work, casual, jeanswear, and going-out occasions. The Company
currently operates more than 650 retail and factory outlet stores,
located primarily in high-traffic shopping malls, lifestyle
centers, and street locations across the United States, Canada, and
Puerto Rico. Express merchandise is also available at franchise
locations in Latin America. Express also markets and sells its
products through its e-commerce website, www.express.com, as well
as on its mobile app.
Non-GAAP Financial Measures:
Adjusted net income and adjusted diluted EPS are non-GAAP
measures. The Company believes that these non-GAAP measures provide
additional useful information to assist stockholders in
understanding its financial results and assessing its prospects for
future performance. Management believes adjusted net income and
adjusted diluted earnings per share are important indicators of the
Company's business performance because they exclude items that may
not be indicative of, or are unrelated to, the Company's underlying
operating results, and provide a better baseline for analyzing
trends in the business. In addition, adjusted diluted earnings per
share is used as a performance measure in the Company's executive
compensation program for purposes of determining the number of
equity awards that are ultimately earned. Because non-GAAP
financial measures are not standardized, it may not be possible to
compare these financial measures with other companies' non-GAAP
financial measures having the same or similar names.
Forward-Looking Statements:
Certain statements are "forward-looking statements" made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
any statement that does not directly relate to any historical or
current fact and include, but are not limited to, guidance and
expectations for the fourth quarter and full year 2016, including
statements regarding expected comparable sales, net income,
adjusted net income, diluted earnings per share, and adjusted
diluted earnings per share. Forward-looking statements are based on
our current expectations and assumptions, which may not prove to be
accurate. These statements are not guarantees and are subject to
risks, uncertainties, and changes in circumstances that are
difficult to predict, and significant contingencies, many of which
are beyond the Company's control. Many factors could cause actual
results to differ materially and adversely from these
forward-looking statements. Among these factors are (1) changes in
consumer spending and general economic conditions; (2) our ability
to identify and respond to new and changing fashion trends,
customer preferences, and other related factors; (3) fluctuations
in our sales, results of operations, and cash levels on a seasonal
basis and due to a variety of other factors, including our product
offerings relative to customer demand, the mix of merchandise we
sell, promotions, and inventory levels; (4) competition from other
retailers; (5) customer traffic at malls, shopping centers, and at
our stores and online; (6) our dependence on a strong brand image;
(7) our ability to develop and maintain a relevant and reliable
omni-channel experience for our customers; (8) the failure or
breach of information systems upon which we rely; (9) our ability
to protect customer data from fraud and theft; (10) our dependence
upon third parties to manufacture all of our merchandise; (11)
changes in the cost of raw materials, labor, and freight; (12)
supply chain disruption; (13) our dependence upon key executive
management; (14) our growth strategy, including our ability to
improve the productivity of our existing stores, open new stores,
and grow our e-commerce business; (15) our substantial lease
obligations; (16) our reliance on third parties to provide us with
certain key services for our business; (17) claims made against us
resulting in litigation or changes in laws and regulations
applicable to our business; (18) our inability to protect our
trademarks or other intellectual property rights which may preclude
the use of our trademarks or other intellectual property around the
world; (19) restrictions imposed on us under the terms of our
asset-based loan facility; (20) impairment charges on long-lived
assets; and (21) changes in tax requirements, results of tax
audits, and other factors that may cause fluctuations in our
effective tax rate. Additional information concerning these and
other factors can be found in Express, Inc.'s filings with the
Securities and Exchange Commission. We undertake no obligation to
publicly update or revise any forward-looking statement as a result
of new information, future events, or otherwise, except as
otherwise required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170110005517/en/
Investors:Express, Inc.Mark Rupe,
(614) 474-4465Vice President Investor RelationsorICR, Inc.Allison
Malkin, (203) 682-8225orMedia:Express,
Inc.Robin Hoffman, (614) 474-4834Director of Communications
Express (NYSE:EXPR)
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