Express Q2 Profit Rises, Lifts FY Outlook; Shares Surge

(RTTNews) - Shares of Express Inc. (EXPR) gained nine percent on Wednesday, after the clothing retailer lifted its profit outlook for the year and reported an increase in second-quarter profit. Revenues for the quarter grew, reflecting strong response from customers for its apparel and accessories.

Columbus, Ohio-based Express now expects full-year 2013 earnings of $1.52 to $1.60 per share, up from prior estimate of $1.48 to $1.58 per share. Analysts polled by Thomson Reuters currently expect earnings of $1.59 per share for the year.

For the third quarter, the company expects earnings in the range of $0.21 to $0.26 per share. Analysts currently expect earnings of $0.25 per share for the quarter.

Chief Executive Michael Weiss said, "Our customers are responding enthusiastically to our assortments, which are trend-right, differentiated and well-edited. We are seeing this reflected in improved conversion rates. As we move into the second half of the year, we are confident in our product and marketing strategies, and believe we are well positioned for the fall and holiday seasons."

Express said sales for second quarter grew 7 percent to $486.2 million from $454.9 million a year ago. Wall Street estimated revenues of $484.99 million for the quarter.

Comparable sales, or sales from stores open at least a year, increased 6 percent.

Gross margin for the quarter dropped to 31.4 percent from 32.2 percent last year. As a percentage of sales, selling, general and administrative expenses dropped 80 basis points to 24.5 percent.

Net profit for the quarter rose to $16.9 million or $0.20 per share from $15.8 million or $0.18 per share a year ago. On average, thirteen analysts expected earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

EXPR is currently trading at $21.58, up $1.78 or 8.99%, on a volume of 3.6 million shares, on the Nasdaq.