Express Inc tumbles as Q2 falls short of expectations

Shares in Express Inc tumbled in pre-market trade after the US retailer’s second-quarter results fell short of analysts’ expectations.

The specialty retail apparel company said net sales declined 6% to $504.8m, while net income fell to $10.1m, or $0.13 per diluted share, from $21m, or $0.25 in the second quarter of 2015.

Analysts had been expecting earnings per share of $0.17 and sales of $521m.

Meanwhile, same-store sales were down 8% compared to a 7% increase in the same quarter last year, while E-commerce sales declined 7% to $70.1m.

President and chief executive officer David Kornberg said: “I am disappointed with our second quarter performance as sales and earnings were below our guidance, reflecting challenging store traffic. This was compounded by a lack of clarity across the assortment.

“We believe we have identified the necessary actions to position Express to regain momentum and we are moving on them. Our fall assortment is more cohesive across our wearing occasions, clearly identifying the important trends, and we are aggressively pursuing several marketing initiatives focused on driving new customer acquisition and retention. In addition, we are pleased with our overall inventory position as we begin the fall season.”

At 1220 BST, Express shares were down 19% to $16.03 in pre-market trade.