Express net income, sales fall in Q4; plans new outlets

Columbus, Ohio – Net income at Express Inc. fell 25% during the fourth quarter of fiscal 2013, dropping from $63.9 million to $47.9 million. Net sales declined 2% from $731.7 million, to $715.9 million.

Same-store sales rose 1%. The company cited heavy promotions as impacting its quarterly results, which did not meet Wall Street expectations. Express intends to start opening outlet stores beginning in May 2014.

“Our fourth quarter results were within the range of our revised guidance but disappointing nonetheless given the strength of our collection across both genders,” said Express chairman and CEO Michael Weiss. “We delivered positive comps for the quarter, but the heavier than planned pace of promotions impacted both top-line and margins. On the plus side, we ended the quarter with lean inventories heading into Spring. We also made advances in terms of three of our growth pillars. Specifically, we continued to grow our e-commerce business; opened new North American stores, including our San Francisco flagship; and continued our international expansion."  

During the full fiscal year, Express saw its net income drop 16% to $116.9 million, from $139.3 million. Net sales increased 3% to $2.2 billion and same-store sales rose 3%.

Looking ahead, Express expects net income of $10 million to $15 million in the first quarter of fiscal 2014 and same-store sales in the negative low to negative high digits. For the full fiscal year 2014, Express projects net income of $88 million to $105 million and same-store sales in the low negative single digits to flat range.

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