FBR Capital Cuts Price Target on Express (EXPR) Following 2Q EPS Miss

FBR Capital reiterated a Market Perform rating on Express Inc. (NYSE: EXPR), and cut the price target to $13.00 (from $18.00), following the company's 2Q earnings report. EXPR reported an EPS miss of $0.13, versus the consensus of $0.17.

Analyst Susan Anderson commented, "EXPR reported a 2Q16 EPS miss of $0.13, versus FBR/consensus of $0.17. SSS and GM were below expectations, driven by declines in traffic and lack of clarity across the assortment. EXPR launched new order management, retail management, and enterprise planning systems, which should benefit inventory management and lay the foundation for omni capabilities (ship from store, reserve in store, pick up in store, etc.). Management also just announced another $30M to $40M of annualized savings. However, we believe traffic will continue to pressure in 2H16, which is reflected in the 3Q16 and 2016 guidance that came in well below consensus. We remain on the sidelines until we see a rebound in SSS/traffic, consistent execution, and earnings growth. Reflective of lowered guidance and lack of visibility, we lower our estimates and adjust our price target to $13 from $18."

For an analyst ratings summary and ratings history on Express Inc. click here. For more ratings news on Express Inc. click here.

Shares of Express Inc. closed at $11.94 yesterday.

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