Express, Inc. Updates Outlook For The Fourth Quarter And Full Year 2013;
Company To Present At The 16Th Annual ICR XChange Conference
COLUMBUS, Ohio, Jan. 13, 2014
COLUMBUS, Ohio, Jan. 13, 2014 /PRNewswire/ --Express, Inc. (NYSE: EXPR), a
specialty retail apparel chain operating more than 625 stores, today revised
its outlook for the fourth quarter and full year 2013, ending February 1,
2014, based on its performance during the holiday season and expectations for
the balance of the period.
Michael Weiss, Express, Inc.'s Chairman and Chief Executive Officer commented:
"Our fourth quarter guidance issued in early December 2013 contemplated a
promotional holiday season as well as a slowdown in traffic after the
Thanksgiving week. What we experienced was a drop in traffic that was even
deeper than anticipated, as consumers waited until much closer to Christmas to
shop. To ensure that we captured customer dollars when customers ultimately
arrived, and with a view to preventing inventories from building, we extended
the duration of our promotions and deepened the discount being offered.
January traffic to date has been weak and we have remained promotional and
expect to maintain this stance throughout the month. While we believe the
actions we took, and are taking, are appropriate, it does require us to adjust
our fourth quarter and full year guidance accordingly."
Mr. Weiss then noted that, "We expect our inventory at the beginning of 2014
to reflect low to mid single digit growth and to be more heavily weighted to
Spring product than at this time last year. Furthermore, we have significant
open to buy dollars available for investment during the Spring season."
The Company is revising its fourth quarter 2013 guidance for the 13 weeks
ending February 1, 2014. Comparable sales are expected to range from flat to
an increase in the low single digit range. Net income is currently expected
in the range of $48 to $52 million, or $0.57 to $0.61 per diluted share on
84.8 million weighted average shares outstanding. This compares to the
Company's previous guidance of $56 to $60 million, or $0.66 to $0.71 per
Based on its revised fourth quarter outlook, the Company has also adjusted its
guidance for the 52 week year ending February 1, 2014. Full year comparable
sales are still expected to increase in the low single digit range. Net
income is currently estimated at $117 to $121 million, or $1.37 to $1.41 per
diluted share on 85.1 million weighted average shares outstanding. This
compares to the Company's previous expectation of $124 to $128 million, or
$1.46 to $1.51 per diluted share. Consistent with previous years, this
guidance excludes any non-core operating items that may occur.
The Company expects to report fourth quarter and full year 2013 results the
week of March 9, 2014.
The Company also announced that on Monday, January 13, 2014, the Company will
present at the 16^th Annual ICR XChange Conference, which is being held at the
JW Marriot Orlando Grande Lakes in Orlando, FL. The presentation will begin at
11:00 a.m. Eastern Time. David Kornberg, President, and Paul Dascoli, Senior
Vice President and Chief Financial Officer, will host the presentation and
Michael Weiss, Chairman and Chief Executive Officer, and Marisa Jacobs, Vice
President of Investor Relations, will be in attendance. The Company's
investor presentation will be posted on the Express website by 7:00 a.m.
Eastern Time on Monday January 13, 2014 and the conference presentation will
be webcast live and available for replay for 30 days at
About Express, Inc.:
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 approximately 625 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,
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 fourth quarter and full year 2013, including statements
regarding expected comparable sales, net income, and earnings per diluted
share, and (2) statements regarding inventory and promotional 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.
SOURCE Express, Inc.
Contact: (Investors) Marisa Jacobs, Express, Inc., Vice President Investor
Relations, (614) 474-4465; Allison Malkin / Anne Rakunas, ICR, Inc., (203)
682-8225 / (310) 954-1113; (Media) Amy Hughes, Express, Inc., Corporate
Communications & Events, (614) 474-4325
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