Express, Inc. Reports First Quarter 2013 Results; Introduces Second Quarter Outlook and Raises Full Year Guidance

 Express, Inc. Reports First Quarter 2013 Results; Introduces Second Quarter
                    Outlook and Raises Full Year Guidance

- First quarter net sales rise 3%; comparable sales are flat

- First quarter diluted EPS reaches $0.38, at upper end of guidance

- Full year guidance raised to reflect first quarter results and positive
second quarter outlook

PR Newswire

COLUMBUS, Ohio, May 30, 2013

COLUMBUS, Ohio, May 30, 2013 /PRNewswire/ --Express, Inc. (NYSE: EXPR), a
specialty retail apparel chain operating 620 stores, today announced its first
quarter 2013 financial results for the thirteen week period ended May 4, 2013,
compared to the thirteen week period ended April 28, 2012.

Michael Weiss, Express, Inc.'s Chairman and Chief Executive Officer commented,
"Much has been written about the macro-economic events and difficult retail
environment that made the first quarter so challenging. We successfully
overcame those hurdles to deliver results that were at the high end of our
guidance. It's always about the product, and our customers responded
enthusiastically to our spring merchandise, which we consider to be fresh and
on-trend. While we promoted more heavily in the face of a highly promotional
environment, we managed our expenses tightly and ended the quarter
well-positioned to achieve our annual goals."

During the quarter, progress was made on each of our growth pillars. Mr.
Weiss noted that, "The direction the business is heading is positive. As we
start the second quarter, momentum in the business is on the upswing, and
conversion, which we often cite as a leading indicator of the business, has
been building since relatively early in the first quarter. We are opening
several new or remodeled stores in key malls that reflect our intensified
focus on prime "hub" locations. Our e-commerce business continued to grow
rapidly, and our international presence expanded, as we added three additional
franchise locations."

He went on to add that, "In March, we announced that we have been exploring
another growth opportunity, namely outlet stores. I'm very pleased to
announce that our search for someone to head this business has concluded
successfully. This ensures that we will have the necessary expertise in-house
to fully develop this strategy."

First Quarter 2013 Operating Results:

  oNet sales increased 3% to $508.5 million from $496.0 million in the first
    quarter of 2012.
  oComparable sales were flat following a 4% comparable sales increase in
    last year's first quarter. This includes e-commerce sales, which
    increased 48% to $70.7 million. In last year's first quarter, e-commerce
    sales grew 28% to $47.9 million.
  oGross margin declined to 33.6% of net sales compared to 38.1% in the first
    quarter of 2012. Merchandise margin declined 240 basis points driven by
    increased promotional activity. Buying and occupancy expenses as a
    percentage of sales increased 210 basis points, in-line with expectations.
  oDisciplined expense management led to lower selling, general, and
    administrative (SG&A) expenses of $112.6 million versus $114.2 million in
    last year's first quarter. As a percent of sales, SG&A expenses improved
    90 basis points to 22.1% of net sales compared to 23.0% in the same period
    last year.
  oOperating income was $58.7 million, or 11.5% of net sales, compared to
    $74.6 million, or 15.0% of net sales, in the first quarter of 2012.
  oThe effective tax rate declined to 39.6% compared to 39.9% in last year's
    first quarter.
  oNet income was $32.4 million, or $0.38 per diluted share, compared to net
    income of $42.1 million, or $0.47 per diluted share, in the first quarter
    of 2012.
  oCapital expenditures totaled $16.9 million, consistent with the first
    quarter of 2012.
  oReal estate activity for the first quarter of 2013 is detailed in Schedule

First Quarter 2013 Balance Sheet:

  oCash and cash equivalents totaled $244.2 million versus $180.4 million at
    the end of the first quarter of 2012.
  oAs expected, inventory rose to $226.3 million, an increase of 12.8%,
    compared to $200.6 million at the end of the first quarter of 2012. The
    calendar shift due to last year's 53rd week accounted for approximately
    4.0% of the increase. Inventory per square foot increased 6.0% compared
    to the comparable period in 2012.
  oLong-term debt was relatively unchanged at $198.9 million, with no
    borrowings outstanding under the Revolving Credit Facility.

2013 Guidance:
The table below compares the Company's projected results for the 13 week
period ended August 3, 2013 to the actual results for the thirteen week period
ended July 28, 2012. 

                                      Second Quarter 2013  Second Quarter 2012
                                      Guidance             Actual Results
Comparable Sales                      +Mid Single Digits   +1%
Effective Tax Rate                    Approximately 40%    39.6%
Interest Expense                      $5 million           $4.8 million
Net Income                            $15 - $18 million    $15.8 million
Diluted EPS                           $0.17 - $0.21        $0.18
Weighted Average Diluted Shares       85.6 million         88.0 million

See Schedule 4 for projected real estate activity.

The table below compares the Company's projected results for the fifty-two
week period ended February 1, 2014 to the actual results for the fifty-three
week period ended February 2, 2013.

                                                                Full Year 2012
                                        Full Year 2013
                                                                Actual Results
Comparable Sales                        +Low to Mid Single      Flat
Effective Tax Rate                      39.3% - 39.8%           40%
Interest Expense                        $20 million             $19.6 million
Net Income                              $127 - $135 million     $139.3 million
Diluted EPS                             $1.48 - $1.58           $1.60 ^(2)
Weighted Average Diluted Shares         85.7 million            87.2 million
Capital Expenditures                    $110 - $115 million     $99.7 million
^(1) Includes approximately $3.0 million related to the 53rd

^(2) Includes approximately $0.04 related to the 53rd week

See Schedule 4 for projected real estate activity.

Consistent with previous years, the quarterly and full year guidance excludes
any non-core operating items that may occur, as well as any costs associated
with the new outlet strategy.

Conference Call Information:
A conference call to discuss first quarter results is scheduled for May 30,
2013, at 9:00 a.m. Eastern Time (ET). Investors and analysts interested in
participating in the call are invited to dial (877) 705-6003 approximately ten
minutes prior to the start of the call. The conference call will also be
webcast live at: remain available for 90
days. A telephone replay of this call will be available at 12:00 p.m. ET on
May 30, 2013 until 11:59 p.m. ET on June 6, 2013 and can be accessed by
dialing (877) 870-5176 and entering replay pin number 414518.

About Express:
Express is a specialty apparel and accessories retailer of women's and men's
merchandise, targeting the 20 to 30 year old customer. The Company has over 30
years of experience offering a distinct combination of fashion and quality for
multiple lifestyle occasions at an attractive value addressing fashion needs
across work, casual, jeanswear, and going-out occasions. The Company currently
operates 620 retail stores, located primarily in high-traffic shopping malls,
lifestyle centers, and street locations across the United States, in Canada,
and in Puerto Rico. Express merchandise is also available at franchise stores
in the Middle East and Latin America. The Company also markets and sells its
products through the Company's e-commerce website,

Forward-Looking Statements:
Certain statements are "forward-looking statements" made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include any statement that does not directly relate
to any historical or current fact and include, but are not limited to, (1)
guidance for the second quarter and full year 2013, including statements
regarding expected comparable sales, effective tax rates, interest expense,
net income and earnings per diluted share, (2) statements regarding expected
store openings, store closures, and gross square footage, and (3) statements
regarding growth strategies and plans. Forward-looking statements are based on
our current expectations and assumptions, which may not prove to be accurate.
These statements are not guarantees and are subject to risks, uncertainties
and changes in circumstances that are difficult to predict. Many factors could
cause actual results to differ materially and adversely from these
forward-looking statements. Among these factors are (1) changes in consumer
spending and general economic conditions; (2) our ability to identify and
respond to new and changing fashion trends, customer preferences and other
related factors; (3) fluctuations in our sales and results of operations on a
seasonal basis and due to store events, promotions and a variety of other
factors; (4) increased competition from other retailers; (5) changes in
customer traffic at malls and shopping centers; (6) our dependence upon
independent third parties to manufacture all of our merchandise; (7) changes
in the cost of raw materials, labor, and freight; (8) supply chain disruption;
(9) our growth strategy, including our international expansion plan; (10) our
dependence on a strong brand image; (11) our dependence upon key executive
management; (12) our reliance on third parties to provide us with certain key
services for our business; and (13) our substantial indebtedness and lease
obligations. Additional information concerning these and other factors can be
found in Express, Inc.'s filings with the Securities and Exchange Commission.
We undertake no obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or otherwise, except
as otherwise required by law.

Schedule 1
Express, Inc.

Consolidated Balance Sheets

(In thousands)

                                May 4, 2013   February 2, 2013  April 28, 2012
Cash and cash equivalents       $ 244,214     $   256,297       $   180,439
Receivables, net                10,773        11,024            9,303
Inventories                     226,329       215,082           200,643
Prepaid minimum rent            25,362        25,166            23,417
Other                           9,850         8,293             18,360
 Total current assets      516,528       515,862           432,162
PROPERTY AND EQUIPMENT          650,899       625,344           537,692
Less: accumulated depreciation  (354,879)     (346,975)         (307,821)
Property and equipment, net     296,020       278,369           229,871
TRADENAME/DOMAIN NAME           197,734       197,719           197,694
DEFERRED TAX ASSETS             16,808        16,808            12,650
OTHER ASSETS                    9,773         10,441            12,187
 Total assets              $ 1,036,863   $   1,019,199     $   884,564
Accounts payable                $ 158,394     $   176,125       $   140,525
Deferred revenue                22,117        27,851            21,616
Accrued bonus                   468           336               3,727
Accrued expenses                94,857        108,464           95,019
Accounts payable and accrued    —             —                 3,605
expenses – related parties
 Total current liabilities 275,836       312,776           264,492
LONG-TERM DEBT                  198,923       198,843           198,611
OTHER LONG-TERM LIABILITIES     154,497       136,418           94,921
 Total liabilities         629,256       648,037           558,024
 Total stockholders'       407,607       371,162           326,540
 Total liabilities and     $ 1,036,863   $   1,019,199     $   884,564
stockholders' equity

Note: Certain prior period amounts have been reclassified or adjusted to
conform to current year presentation.

Schedule 2
Express, Inc.

Consolidated Statements of Income and Comprehensive Income

(In thousands, except per share amounts)

                                                 Thirteen Weeks Ended
                                                 May4,      April28,
                                                 2013        2012
NET SALES                                        $ 508,524   $ 495,952
  Gross profit             170,777     188,767
Selling, general, and administrative expenses    112,623     114,195
Other operating (income) expense, net            (540)       15
  Total operating expenses 112,083     114,210
OPERATING INCOME                                 58,694      74,557
INTEREST EXPENSE, NET                            4,805       4,782
OTHER EXPENSE (INCOME), NET                      229         (208)
INCOME BEFORE INCOME TAXES                       53,660      69,983
INCOME TAX EXPENSE                               21,223      27,910
NET INCOME                                       $ 32,437    $ 42,073
Foreign currency translation                     70          (78)
COMPREHENSIVE INCOME                             $ 32,507    $ 41,995
Basic                                            $ 0.38      $ 0.47
Diluted                                          $ 0.38      $ 0.47
Basic                                            85,095      88,846
Diluted                                          85,490      89,310

Schedule 3
Express, Inc.

Consolidated Statements of Cash Flows

(In thousands)

                                                   Thirteen Weeks Ended
                                                   May4, 2013  April28, 2012
 Net income                                   $  32,437    $   42,073
 Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization          17,441       17,049
 Loss on disposal of property and       64           17
 Excess tax benefit from share-based    (1)          (273)
 Share-based compensation               5,011        3,856
 Deferred taxes                         —            (188)
 Changes in operating assets and
 Receivables, net                 287          (263)
 Inventories                      (11,296)     12,468
 Accounts payable, deferred       (44,776)     (32,333)
revenue, and accrued expenses
 Other assets and liabilities     6,194        3,216
 Net cash provided by       5,361        45,622
operating activities
 Capital expenditures                         (16,853)     (16,932)
 Purchase of intangible assets                —            (185)
 Net cash used in investing (16,853)     (17,117)
 Payments on capital lease obligation         (15)         (13)
 Excess tax benefit from share-based          1            273
 Proceeds from share-based compensation       1,082        623
 Repurchase of common stock                   (1,785)      (1,349)
 Net cash used in financing (717)        (466)
EFFECT OF EXCHANGE RATE ON CASH                    126          38
NET (DECREASE) INCREASE IN CASH AND CASH           (12,083)     28,077
CASH AND CASH EQUIVALENTS, Beginning of period     256,297      152,362
CASH AND CASH EQUIVALENTS, End of period           $  244,214   $   180,439

Note: Certain prior period amounts have been reclassified or adjusted to
conform to current year presentation.

Schedule 4
Express, Inc.

Real Estate Activity

First Quarter 2013 - Actual         May 4, 2013
                                                Gross Square
Company-Operated Stores Open Close  Store Count
United States           2    8      608
Canada                  1    —      12
Total                   3    8      620         5.4 million
Second Quarter 2013 - Projected     August 3, 2013
                                                Gross Square
Company-Operated Stores Open Close  Store Count
United States           2    1      609
Canada                  1    —      13
Total                   3    1      622         5.4 million
Full Year 2013 - Projected          February 1, 2014
                                                Gross Square
Company-Operated Stores Open Close  Store Count
United States           12   9      617
Canada                  4    —      15
Total                   16   9      632         5.5 million

SOURCE Express, Inc.

Contact: Investor Contacts: Marisa Jacobs, Express, Inc., Vice President
Investor Relations, (614) 474-4465; Allison Malkin / Anne Rakunas, ICR, Inc.,
(203) 682-8225 / (310) 954-1113; Media Contact: Amy Hughes, Express, Inc.,
Corporate Communications & Events, (614) 474-4325
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