Express, Inc. Updates Outlook for the Fourth Quarter and Full Year 2017 in Advance of the 20th Annual ICR Conference
January 09 2018 - 6:45AM
Business Wire
In advance of its presentation at the 20th Annual ICR
Conference, Express, Inc. (NYSE: EXPR), a specialty retail apparel
company, today updated its outlook for the fourth quarter and full
year periods ending February 3, 2018, based on its performance
during the 2017 holiday season.
David Kornberg, Express, Inc.'s president and chief executive
officer, commented: “The fourth quarter was off to a positive start
in November and early December, however the key weeks leading up to
Christmas were disappointing. Our performance during December was
most challenging in our retail stores, where traffic was worse than
expected. E-commerce sales quarter to date continue to trend
positively, up double-digits versus last year. From a product
perspective, dresses and sweaters were the primary drivers of the
sales miss relative to our expectations. We have identified the
product specific issues and are actively addressing them to improve
future performance. On a positive note, January to date sales have
stabilized, improving relative to the December trend. That said,
based on our holiday performance, we are lowering our fourth
quarter and full year 2017 outlook for comparable sales and EPS.
While we are course correcting in some areas of the business, we
are confident in our long-term initiatives and our ability to drive
improved performance."
2017 Guidance:
Fourth Quarter:
Comparable sales are currently expected to be in the range of
-1% to -2%. The Company expects net income to be in the range of
$24.5 to $26.0 million and diluted earnings per share to be in the
range of $0.31 to $0.33 on 79.2 million weighted average shares
outstanding.
On November 28, 2017, the Company's Board of Directors approved
a new share repurchase program that authorized the Company to
repurchase up to $150 million of the Company’s outstanding common
stock using available cash. Under this authorization, the Company
has repurchased 448,310 common shares for approximately $5.0
million and currently has $145 million remaining under its
authorization. The Company’s updated fourth quarter guidance
reflects such share repurchases, however does not contemplate any
future share repurchases.
Full Year:
Comparable sales are expected to be -4%. Net income is expected
to be in the range of $14.3 to $15.8 million, or $0.18 to $0.20 per
diluted share. Adjusted net income is expected to be in the range
of $26.0 to $27.5 million, or $0.33 to $0.35 per diluted share on
78.9 million shares outstanding. Adjusted net income excludes
approximately $24.2 million, or $11.7 million net of tax and $0.15
per share, related to the exit of Canada.
Consistent with past practice, this guidance excludes any
additional non-core operating items that may occur and also
excludes the impact of any changes in tax legislation.
The Company expects to report fourth quarter and full year 2017
results during the week of March 12, 2018.
ICR Conference:
The Company will present at the 20th Annual ICR Conference being
held at the JW Marriott Orlando Grande Lakes in Orlando, Florida on
Tuesday, January 9, 2018 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 January 9, 2018 and the conference presentation will be webcast
live and available for replay for 90 days at www.express.com/investor.
About Express, Inc.:
Express is a specialty retailer of women's and men's apparel and
accessories, 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 600 retail and factory outlet stores, located primarily
in high-traffic shopping malls, lifestyle centers, and street
locations across the United States and Puerto Rico. Express
merchandise is also available at franchise locations and online 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.
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 2017, including
statements regarding expected comparable sales, net income,
adjusted net, income, earnings per diluted share, and adjusted
earnings per diluted share, and other statements regarding future
business performance, business initiatives, and share repurchases.
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, including restrictions on the ability to
effect share repurchases; (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 required
by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20180109005227/en/
Express, Inc.Mark Rupe, 614-474-4465Vice President Investor
Relations
Express (NYSE:EXPR)
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