Express Q2 Profit Down, But Exceeds Estimates; Lifts FY14 Earnings Outlook

(RTTNews) - Clothing retailer Express, Inc. (EXPR) Wednesday reported second-quarter earnings which declined, due mainly to lower sales and gross margin. Earnings, however, topped analysts' estimates. The company also raised its annual outlook.

For the 3-month period, net earnings totaled $6.9 million or $0.08 per share, down from $16.9 million or $0.20 per share a year earlier.

On average, seventeen analysts polled by Thomson-Reuters expected the company to report breakeven earnings. Analysts' estimates typically exclude one-time items.

Quarterly net sales declined to $481.4 million, from $490.1 million last year a year earlier. Wall Street expected sales of $457.1 million.

Comparable sales for the second quarter declined 5 percent, the company said in a statement.

Looking ahead, the company raised its annual earnings target to $0.85 and $0.95 per share, from the previously projected range of $0.74 and $0.90 per share. The company, however, maintained its annual comparable sales outlook of negative mid single digits growth.

For the third quarter, Express, Inc. expects net earnings of $11 million and $15 million, or $0.13 and $0.18 per share, and comparable sales in negative low single digits.

Analysts expect annual earnings of $0.81 per share, and third-quarter earnings of $0.16 per share.