Express Shares Plunges After Disappointing Profit And Sales, Downbeat Outlook

Shares of Express Inc. plunged 17% in premarket trade Wednesday, after the apparel and accessories retailer reported fiscal second-quarter profit and sales that missed expectations, and provided a downbeat outlook. For the quarter ended July 30, earnings fell to $10.1 million, or 13 cents a share, from $21.0 million, or 25 cents a share, in the same period a year ago. The FactSet earnings-per-share consensus was 17 cents. Sales declined to $504.8 million from $535.6 million, missing the FactSet consensus of $520.9 million. Same-store sales declined 8%, compared with the FactSet consensus of a 4.6% decline. For the current quarter, the company expects EPS of 9 cents to 15 cents, below the FactSet consensus of 32 cents, and same-store sales to be down in the high-single-to-low-double-digits percentage range, compared with expectations of a 2.7% decline. "I am disappointed with our second quarter performance as sales and earnings were below our guidance, reflecting challenging store traffic," said Chief Executive David Kornberg. "This was compounded by a lack of clarity across the assortment." The stock had lost 7.2% year to date through Tuesday, while the SPDR S&P Retail ETF had climbed 6.8% and the S&P 500 had gained 7%.