Express (EXPR) Tops Q3 EPS by 15c, Revenue Misses Consensus

Express (NYSE: EXPR) reported Q3 EPS of $0.17, $0.15 better than the analyst estimate of $0.02. Revenue for the quarter came in at $472 million versus the consensus estimate of $503.1 million.

• Consolidated comparable sales increased 46% compared to 2020 and 3% compared to 2019

2021 Outlook:

• Based on strong third quarter performance and the power of our product, brand, and customer strategies balanced against the ongoing supply chain constraints, tight labor market and other inflationary pressures, the Company expects the following compared to 2019:
• Comparable sales to increase by low-single digits for the fourth quarter
• Inventory level and composition well-positioned to deliver the fourth quarter sales outlook
• Gross Margin rate to be approximately 100 basis points higher for the fourth quarter, including approximately $15 million of expenses related to mitigating supply chain challenges
• Selling, General and Administrative expenses up 9% - 11%, driven by investments in marketing and higher labor expenses
• Net interest expense of $3 million for the fourth quarter
• Effective Tax rate essentially zero percent for the fourth quarter and full year
• Positive free cash flow for the full year
• Capital expenditures of approximately $35 million for the full year
• Well positioned to achieve our long-term goals, including $1.0 billion in eCommerce demand and over $100 million in operating profit by 2024

Assumptions in the Company outlook may be affected by the continued uncertainty of the pandemic and its impacts throughout the supply chain.

For earnings history and earnings-related data on Express (EXPR) click here.

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