Why Express Stock Plunged This Week
Shares of Express (NYSE: EXPR) fell 28% this past week, according to data provided by S&P Global Market Intelligence, after the fashion retailer slashed its full-year earnings forecast.
Express' net sales rose 2% year over year to $464.9 million in its fiscal second quarter, which ended on July 30. The company's comparable outlet store sales, which includes revenue from locations that were open for 12 months or more, climbed by 2%. However, its retail comps were flat, as a 6% rise in retail store sales was offset by a 6% decline in e-commerce sales.
Express' gross margin improved by 50 basis points (1 basis point equals 0.01%) to 33.1%, driven in part by its increased sales leverage. Yet its operating margin was negatively impacted by technology investments and higher store staffing levels. Express' operating income in turn declined by 30% to $10.4 million. And its net income fell 34% to $7 million, or $0.10 per share.
Source Fool.com
