Express (EXPR) Misses Q4 EPS by 2c; Issues Light Q1, FY14 Profit Outlook
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Express (NYSE: EXPR) reported Q4 EPS of $0.57, $0.02 worse than the analyst estimate of $0.59. Revenue for the quarter came in at $715.9 million versus the consensus estimate of $722.02 million.
Michael Weiss, the Company's Chairman and Chief Executive Officer, noted that, "Our fourth quarter results were within the range of our revised guidance but disappointing nonetheless given the strength of our collection across both genders. We delivered positive comps for the quarter, but the heavier than planned pace of promotions impacted both top-line and margins. On the plus side, we ended the quarter with lean inventories heading into Spring. We also made advances in terms of three of our growth pillars. Specifically, we continued to grow our E-Commerce business; opened new North American stores, including our San Francisco flagship; and continued our international expansion. We also laid the groundwork for our outlet initiative and plan to open the first of these outlet stores in the beginning of May 2014."
Commenting on first quarter and full year 2014 guidance, Mr. Weiss noted that, "We transitioned to Spring with multiple key items that are turning quickly and an assortment that is highlighting important emerging trends. The start of 2014 has nevertheless been extremely difficult, with traffic down significantly, negative comparable sales and the promotional environment remaining intense. Our first quarter guidance reflects year to date traffic and comparable sales as well as our belief that a material uptick in traffic is not necessarily imminent. This in turn leads us to believe that the promotional environment will continue, and we have planned accordingly. Our full year projections anticipate a return to EPS growth in the back half of the year, but full year results will be impacted by a weak start to 2014 and de-leveraging associated with our buying and occupancy and SG&A expenses. We are working on a variety of initiatives to generate improved results and remain committed to driving long-term shareholder value."
Comparable sales (including e-commerce sales) increased 1% compared to a 1.5% increase in last year's fourth quarter. E-commerce sales increased 14% to $138.8 million in the fourth quarter of 2013 (13 weeks) compared to last year's 14 week fourth quarter.
Express sees Q1 2014 EPS of $0.12-$0.18, versus the consensus of $0.41. Sees negative low double to negative high single digits comp growth.
Sees FY2014 EPS of $1.03-$1.23, versus the consensus of $1.39. Sees negative low single digits to flat comps growth.
For earnings history and earnings-related data on Express (EXPR) click here.
Michael Weiss, the Company's Chairman and Chief Executive Officer, noted that, "Our fourth quarter results were within the range of our revised guidance but disappointing nonetheless given the strength of our collection across both genders. We delivered positive comps for the quarter, but the heavier than planned pace of promotions impacted both top-line and margins. On the plus side, we ended the quarter with lean inventories heading into Spring. We also made advances in terms of three of our growth pillars. Specifically, we continued to grow our E-Commerce business; opened new North American stores, including our San Francisco flagship; and continued our international expansion. We also laid the groundwork for our outlet initiative and plan to open the first of these outlet stores in the beginning of May 2014."
Commenting on first quarter and full year 2014 guidance, Mr. Weiss noted that, "We transitioned to Spring with multiple key items that are turning quickly and an assortment that is highlighting important emerging trends. The start of 2014 has nevertheless been extremely difficult, with traffic down significantly, negative comparable sales and the promotional environment remaining intense. Our first quarter guidance reflects year to date traffic and comparable sales as well as our belief that a material uptick in traffic is not necessarily imminent. This in turn leads us to believe that the promotional environment will continue, and we have planned accordingly. Our full year projections anticipate a return to EPS growth in the back half of the year, but full year results will be impacted by a weak start to 2014 and de-leveraging associated with our buying and occupancy and SG&A expenses. We are working on a variety of initiatives to generate improved results and remain committed to driving long-term shareholder value."
Comparable sales (including e-commerce sales) increased 1% compared to a 1.5% increase in last year's fourth quarter. E-commerce sales increased 14% to $138.8 million in the fourth quarter of 2013 (13 weeks) compared to last year's 14 week fourth quarter.
Express sees Q1 2014 EPS of $0.12-$0.18, versus the consensus of $0.41. Sees negative low double to negative high single digits comp growth.
Sees FY2014 EPS of $1.03-$1.23, versus the consensus of $1.39. Sees negative low single digits to flat comps growth.
For earnings history and earnings-related data on Express (EXPR) click here.
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