Express (EXPR) Misses Q1 EPS by 8c, Guides Below the Street; $100M Buyback

Express (NYSE: EXPR) reported Q1 EPS of $0.06, $0.08 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $460.7 million versus the consensus estimate of $464.06 million.

Express sees Q2 2014 EPS of ($0.03)-$0.03, versus the consensus of $0.12.

Express sees FY2014 EPS of $0.74-$0.90, versus the consensus of $1.14.

The Company also announced today that its Board of Directors has authorized it to repurchase up to $100 million of its common stock. The share repurchases are expected to be made over the next 18 months and will be funded through the Company's available cash.

Michael Weiss, the Company's Chairman and Chief Executive Officer, noted that, "We had anticipated a very challenging first quarter, but our actual results were weaker than planned. Our business strengthened in April, but not to the degree that we anticipated when we formulated our first quarter guidance. While external challenges contributed to the decline in our first quarter performance, we also did not execute as well as we could have."

Commenting on second quarter and full year 2014 guidance, Mr. Weiss noted that, "Our second quarter results will be impacted by the need to move through slow selling Spring inventory and a Memorial Day event that did not drive traffic as successfully as last year. Our full year guidance incorporates the impact of a very challenging first half, while also anticipating sequential improvements in comparable sales in quarters two through four as we deliver new product we believe will be more in line with customer expectations. We also expect to benefit from cost saving initiatives and, upon completion of our debt refinancing, lower interest expense. I am also delighted to note that the 17 Express Factory Outlet Stores now in operation are exceeding our plans and being met with great enthusiasm; we expect them to contribute to a stronger second half. In light of this performance, we are accelerating future outlet store openings."

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

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