Express Inc. rose the most in more than a year after second-quarter profit topped analysts’ estimates, helped by on-trend products and reduced discounts.
Earnings in the quarter were 25 cents a share, the Columbus, Ohio-based company said in a statement Wednesday. Analysts estimated 16 cents, on average. Adjusted profit this year will be as much as $1.37, up from a previous forecast for as much as $1.22.
Chief Executive Officer David Kornberg is working to turn around the retailer and lure shoppers with trendy assortments that feature workwear, athletic and going-out products. The company is catering to value-focused customers by opening more outlet stores while at the same time reducing the frequency and depth of discounts.
The shares climbed 20 percent to $20.25 at the close in New York for the biggest gain since June 2014. Express has now advanced 38 percent this year.
Chico’s FAS Inc., another apparel retailer, also rose after posting strong second-quarter results. Profit in the quarter was 25 cents a share, excluding some items, the Fort Myers, Florida-based company said Wednesday. Analysts estimated 22 cents, on average. The shares gained 6.7 percent to $14.75.