Upcoming AWS Coverage on Genesco Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 8, 2016 / Active Wall St. announces its post-earnings coverage on Express Inc. (NYSE: EXPR). The Company reported its third quarter fiscal 2016 (Q3 FY16) earnings on December 01, 2016. The Columbus, Ohio-based company's net sales decreased 7%; however it beat consensus market estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Express' competitors within the Apparel Stores space, Genesco Inc. (NYSE: GCO), reported on December 02, 2016, third quarter fiscal 2017 results. AWS will be initiating a research report on Genesco in the coming days.

Today, AWS is promoting its earnings coverage on EXPR; touching on GCO. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=EXPR

http://www.activewallst.com/registration-3/?symbol=GCO

Earnings Reviewed

In Q3 FY16, Express reported net sales of $506.09 million compared to $546.62 million in Q3 FY15. However, net sales for the reported quarter outperformed market expectations of $497.08 million. For Q3 FY16, comparable sales (including e-commerce sales) fell 8% versus a 6% growth in the last year's same quarter. The company's comparable sales decline was in-line with the guidance of a negative high single-digit to negative low double-digit guidance, provided in August 2016.

The specialty apparel and accessories retailer's net income declined to $11.62 million, or $0.15 per diluted share, in Q3 FY16, from $26.31 million, or $0.31 per diluted share, in the prior year's comparable quarter. Wall Street had expected the company to report Q3 FY16 net earnings of $0.13 per diluted share.
David Kornberg, Express Inc.'s President and Chief Executive Officer, stated:

"Our third quarter performance was highlighted by sales and earnings in line with our guidance and progress made addressing the areas noted for improvement during our second quarter call. Notably, while mall traffic challenges continued to impact our store performance, we achieved a double digit increase in e-commerce sales."

Operating Metrics

In the three months ended October 29, 2016, Express's gross profit came in at $151.72 million compared to $191.09 million in Q3 FY15. Due to increased promotional activity, gross margin declined 500 basis points to 30% of net sales in Q3 FY16 from 35% of net sales in the previous year same quarter and merchandise margin declined 340 on a y-o-y basis.

The company's selling, general, and administrative expenses for the reported quarter were down to $136.63 million, from $146.59 million in Q3 FY15. The decline in SG&A expenses was due to saving across many categories of expenses and the reduction in sales. Furthermore, operating income fell during Q3 FY16 to $15.10 million, or 3% of net sales, from $44.53 million in Q3 FY15.

Cash Flow and Balance Sheet

In the nine months ended October 29, 2016, net cash provided by operating activities increased to $59.86 million from $55.63 million in the first three quarters of FY15. As on October 29, 2016, the company had $101.86 million in cash and cash equivalents compared to a balance of $91.22 million as on October 31, 2015.

Express Inc. made capital expenses of $80.90 million in the thirty-nine weeks ended October 29, 2016, compared to $85.01 million for the thirty-nine weeks ended October 31, 2015. Furthermore, the company reported inventories of $341.94 million in its books of accounts as on October 29, 2016, compared to $364.66 million as on October 31, 2015.

In the three quarter ended October 29, 2016, the company bought back approximately 3.2 million shares of its outstanding common stock for $51.5 million.

Earnings Outlook

In its earnings guidance for Q4 FY16, Express Inc. expects low double digits comparable sales decline with net income in the range of $20 million to $23 million. Diluted EPS for the upcoming quarter is forecasted to be between $0.26 per share and $0.30 per share.

For full year FY16, comparable sale is anticipated to decline in high single digits with net income in the range of $55 million to $58 million. The company projects diluted EPS for FY16 to be between $0.70 per share and $0.74 per share. Furthermore, adjusted net income for FY16 is anticipated to be in the range of $62 million to $65 million, while adjusted diluted EPS is forecasted to be between $0.78 per share and $0.82 per share.

Stock Performance

At the close of trading session on December 07, 2016, Express' stock price rose 2.00% to end the day at $11.72. A total volume of 2.52 million shares were exchanged during the session, which was above the 3-month average volume of 2.39 million shares. The stock currently has a market cap of $906.07 million and is trading at a PE ratio of 10.53.

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SOURCE: Active Wall Street