Express Earnings Match Expectations

Columbus, Ohio.-based Express shares soared today after the teen-oriented retailer reported earnings that matched analyst expectations on the bottom line, and beat on the top.

Express announced today that fiscal Q2 2013 earnings came in at $0.20 per share, up 11% in comparison to Q2 2012, and matching the consensus forecast. Q2 sales of $486 million barely beat expectations of $485 million, and were up more than 7% in comparison to last year. Same-store sales grew 6%, including wildfire growth in the company's e-commerce division, where sales grew 27% to $60 million, about 12% of all revenues collected by the company in the quarter.

In profit margins news, Express' gross margin declined 80 basis points year-over-year, but this was offset by an 80-basis-point improvement in selling, general, and administrative expenses, as a percentage of sales. As a result, operating profit margin at Express held steady at 6.9%.


Chief Executive Officer Michael Weiss characterized the second quarter as "very solid." Going forward, Express is guiding investors to expect mid-single digits same-store sales growth, per-share profits ranging from $0.21 to $0.26, and a slight decline in shares outstanding as Express continues to buy back shares. During the quarter, the company repurchased approximately 600,000 shares of its common stock at an aggregate cost of $13.9 million, ending the second quarter with $21.1 million of its $100 million repurchase authorization still outstanding. Repurchases of an additional 1 million shares during the third quarter wrapped up the repurchase program.

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The article Express Earnings Match Expectations originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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