Express Q4 sales, income beat street
Express reported quarterly sales and income that topped analysts’ estimates, fueled by rising online and outlet store sales.
Net income was $29.4 million, or $0.37 per diluted share for the quarter ended Feb. 4. On an adjusted basis, excluding the impact of the recent tax legislation, net income was $26.8 million, or $0.34 per diluted share. This compares to net income of $22.8 million, or $0.29 per diluted share, in the year-ago period. Analysts had predicted earnings of 32 cents per share.
Net sales increased 2% to $693.8 million in the quarter, which had an extra week, from $678.8 million last year. The extra week was worth $26 million in sales.
Comparable sales (including e-commerce sales) decreased 1%, compared to a 13% decrease last year. E-commerce sales increased 20% to $203.3 million. On a comparable sales basis, e-commerce sales increased 17%.
"While our overall 2017 full year results were below plan, our performance showed improvement over the course of the year, as our key initiatives gained traction,” stated president and CEO David Kornberg. “We were particularly pleased with the performance of our e-commerce business, which continues its significant growth and accounted for over $500 million in sales in 2017.”
Express’ outlet stores are also performing well. The retailer has been converting some of its full-price locations to outlet stores and has also opened some new outlet locations. By the end of 2018, Express expects to have 183 outlet stores, up from 145 locations at the end of 2017, Kornberg said on the chain’s quarterly conference call with analysts. Express debuted its outlet store format in spring 2014.
For 2018, Express said it is focused on delivering compelling product, growing customer base and brand awareness, and pursuing double-digit online growth. It also plans to continue to expand its omnichannel capabilities and further optimize its store footprint.
Korberg noted that Express’ financial position is strong, with more than $235 million in cash and no debt.
“Since our board authorized a $150 million share repurchase program in November, we have repurchased $25 million, or 3.2 million shares, underscoring our confidence in the business and commitment to driving shareholder value,” he noted.
For the full year, Express’ net sales decreased 2% to $2.13 billion million from $2. 19 billion in 2016. Total comparable sales fell 3%, compared to a 9% decrease in 2016. E-commerce sales increased 23% to $509.0 million from $413.4 million in 2016. On a comparable sales basis, e-commerce sales increased 22% in 2017 as compared to 2016.
Net income was $19.4 million, or $0.25 per diluted share, compared to $57.4 million, or $0.73 per diluted share in 2016. On an adjusted basis, net income was $28.4 million, or $0.36 per diluted share, compared to $64.3 million, or $0.81 per diluted share in 2016.
Net income was $29.4 million, or $0.37 per diluted share for the quarter ended Feb. 4. On an adjusted basis, excluding the impact of the recent tax legislation, net income was $26.8 million, or $0.34 per diluted share. This compares to net income of $22.8 million, or $0.29 per diluted share, in the year-ago period. Analysts had predicted earnings of 32 cents per share.
Net sales increased 2% to $693.8 million in the quarter, which had an extra week, from $678.8 million last year. The extra week was worth $26 million in sales.
Comparable sales (including e-commerce sales) decreased 1%, compared to a 13% decrease last year. E-commerce sales increased 20% to $203.3 million. On a comparable sales basis, e-commerce sales increased 17%.
"While our overall 2017 full year results were below plan, our performance showed improvement over the course of the year, as our key initiatives gained traction,” stated president and CEO David Kornberg. “We were particularly pleased with the performance of our e-commerce business, which continues its significant growth and accounted for over $500 million in sales in 2017.”
Express’ outlet stores are also performing well. The retailer has been converting some of its full-price locations to outlet stores and has also opened some new outlet locations. By the end of 2018, Express expects to have 183 outlet stores, up from 145 locations at the end of 2017, Kornberg said on the chain’s quarterly conference call with analysts. Express debuted its outlet store format in spring 2014.
For 2018, Express said it is focused on delivering compelling product, growing customer base and brand awareness, and pursuing double-digit online growth. It also plans to continue to expand its omnichannel capabilities and further optimize its store footprint.
Korberg noted that Express’ financial position is strong, with more than $235 million in cash and no debt.
“Since our board authorized a $150 million share repurchase program in November, we have repurchased $25 million, or 3.2 million shares, underscoring our confidence in the business and commitment to driving shareholder value,” he noted.
For the full year, Express’ net sales decreased 2% to $2.13 billion million from $2. 19 billion in 2016. Total comparable sales fell 3%, compared to a 9% decrease in 2016. E-commerce sales increased 23% to $509.0 million from $413.4 million in 2016. On a comparable sales basis, e-commerce sales increased 22% in 2017 as compared to 2016.
Net income was $19.4 million, or $0.25 per diluted share, compared to $57.4 million, or $0.73 per diluted share in 2016. On an adjusted basis, net income was $28.4 million, or $0.36 per diluted share, compared to $64.3 million, or $0.81 per diluted share in 2016.