Express Q1 Profit Surges, Beats Estimates; Lifts FY15 Guidance

(RTTNews) - Specialty retail apparel chain Express, Inc. (EXPR) Thursday announced a surge in first quarter net income to $13.062 million from $5.083 million in the prior year. Earnings per share more than doubled to $0.15 from $0.06. The company noted that merchandise margin expanded by 200 basis points and that reflected in earnings, above its expectations.

After considering approximately $9.7 million of pre-tax non-core operating expenses incurred in connection with the full redemption of our Senior Notes due 2018, adjusted net income was $19 million or $0.22 per share. On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.14 per share.

Net sales for the quarter climbed to $502.378 million from $460.652 million in the previous year Comparable sales, including e-commerce sales increased 7 percent. E-commerce sales alone contributed $77.6 million, up 12 percent from the prior year.

Looking ahead to the second quarter, the company expects net income in the range of $11 to $14 million or earnings per share of $0.13 to $0.16. Wall Street expects $0.12 per share on revenue of $499.97 million. Comparable sales are expected at low single digits.

For the full year 2015, the company raised its outlook and now expects net income of $89 to $98 million. Earnings per share are expected to be $1.04 to $1.15 per share and adjusted earnings per share expected to be $1.11 to $1.22. Comparable sales are projected to be at low single digits. Street expects $1.06 per share on revenue of $2.26 billion.

Earlier, the company was looking for net income in the range of $73 million to $85 million or $0.86 to $1.00 per share, adjusted net income of $79 million to $91 million or $0.93 to $1.07 per share.