It’s a good day to be an investor in shares of Express, Inc. (NYSE:EXPR), after the apparel chain posted better-than-expected second quarter earnings and revenue. Specifically, the company’s 2Q adjusted per-share earnings came in at 1 cent, while the Street expected a loss of 1 cent. Revenue reported by Express, Inc. in the second quarter of 2017 was $478.54 million. In addition, 2Q revenue of $504.77 came in above consensus estimate of $474.10 million. Looking ahead, Express expects 3Q:17 earnings per share for the quarter to range from 6 cents to 10 cents, compared to consensus estimate of 11 cents.
Express’s shares took off after reporting the earnings beat, and the stock is trading 23% higher at $6.77 in Wednesday’s trading session.
Express CEO David Kornberg commented, “Comparable sales and earnings were at the top end of our guidance, as our key initiatives gained further traction. Our e-commerce performance was outstanding, increasing 28% over last year, and store comps showed further sequential improvement.”
Kornberg continued, “As we look ahead to the second half of the year, we are optimistic about our ability to drive further improved performance in a transforming retail industry. We expect the momentum of our initiatives to continue to build and contribute more meaningfully. Our marketing efforts are resulting in improved trends in engagement and we believe they will drive increased customer acquisition and retention. We expect e-commerce sales growth to remain solid and store performance to sequentially improve, driven in part by our expanded omni-channel capabilities. We remain focused on managing our costs and see clear opportunities to enhance the overall efficiency of our business. Our balance sheet remains strong with more than $170 million in cash and no debt, and we continue to expect to generate solid cash flow. Our confidence in our strategy and conviction in our long-term opportunity remains resolute and we are committed to driving shareholder value.”
On the ratings front, BMO analyst John Morris reiterated a Hold rating on EXPR, with a price target of $7.00, in a report issued on August 8. The current price target represents a potential upside of 6% from where the stock is currently trading. According to TipRanks.com, Morris has a yearly average loss of 4.7%, a 32% success rate, and is ranked #4077 out of 4611 analysts.
Express, Inc. engages in the retail of specialty apparel, and accessories for both women and men. It offers products which address fashion needs across lifestyles, work, casual, jeanswear, and going-out occasions.