Shares of Express Inc. lost more than one-fifth of their value in morning trading today after the apparel specialty retailer reported disappointing third-quarter results and provided a bleak outlook for the holiday season.
Noting that Thanksgiving week sales exceeded last year’s but fell short of company expectations, Michael Weiss, chairman and chief executive officer, commented, “We had been planning a promotional holiday season but we now expect the intensity of those promotions to reach heightened levels and we are updating our full-year guidance accordingly.”
Full-year earnings, originally expected to land between $1.52 and $1.60 a diluted share, were lowered to a range of $1.46 to $1.51. Fourth-quarter EPS is projected to fall to between 66 and 71 cents a diluted share, down from 75 cents in the final quarter of 2012 and below the 78 cents previously anticipated, on average, by analysts. Comparable sales, including e-commerce revenues, are expected to rise in the low-single digits.
In the first hours of trading, Express shares were down $5.39, or 21.9 percent, to $19.28. The weak showing by Express also put pressure on shares of Aéropostale Inc., down 3.2 percent to $9.43, and Guess Inc., down 1.8 percent to $33.27, both of which are scheduled to report third-quarter results after market today.
The S&P 500 Retailing Industry Group was off 0.2 percent to 917.46, with most teen and youth retailers hit by sharper declines.
Third-quarter earnings also fell short of analysts’ consensus estimates. In the 13 weeks ended Nov. 2, net income rose 11.1 percent to $19.3 million, or 23 cents a diluted share, from $17.4 million, or 20 cents, in the prior-year period. The consensus estimate among analysts was for EPS of 25 cents.
Revenues rose 7.4 percent to $503 million from $468.5 million. Comparable sales rose 5 percent, including a 21 percent hike in e-commerce to $55 million. Gross margin expanded to 32.9 percent of sales from 32.3 percent a year ago.
“Despite the promotional environment,” the company said, “we were able to recover some of the margin lost in last year's third quarter by delivering a stronger product assortment, especially on the women's side of the business.”
Weiss noted, “Our overarching goal is to continue presenting Express as a premier fashion authority for our demographic, and we believe that our current and go-forward assortments demonstrate that standing."
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)