Teen retail giant Express, Inc. (NYSE:EXPR) announced its quarterly results as its profits and sales dropped significantly during the period.
In an announcement, Express, Inc. (NYSE:EXPR) said earnings in the fourth-quarter plunged to $22.8 million, or 29 cents a share, from $56.1 million, or 67 cents a share, year over year. The FactSet consensus was for earnings per share of 29 cents.
Revenue of Express, Inc. (NYSE:EXPR) slid to $678.8 million from $765.6 million but beaten the analysts estimates of $676 million. Same-store sales came down 13%, in contrast with a predicted 12.2% decline.
“As expected, our store performance continued to be impacted by challenging mall traffic and a promotional retail environment,” said Chief Executive David Kornberg.
In the recent quarters all kind of retailers, and teen retailers specifically, have suffered big time as mall traffic dropped and younger customer move away from spending cash on things in favor of experiences.
Recently, Eastern Outfitters, whose chains comprise Eastern Mountain Sports and Bob’s Stores, and the Limited filed for Chapter 11 protection, with the latter shuttering all its stores.
Last year firms like Wet Seal, American Apparel, Aéropostale Inc. and Sports Authority have filed for Chapter 11 or were liquidated.
For the future, Express said it anticipates first-quarter same-store sales to drop sales to drop by 7-9 percent in contrast with predictions of a 5.3% drop. The firm expects a per-share loss of 4 cents to break-even for the three month period, competitively with the FactSet per-share earnings consensus of 15 cents.
Meanwhile Express (EXPR) stock has dropped above 50% in the last 12 months, while the SPDR S&P Retail exchange-traded fund has dropped 5.3% and the S&P 500 SPX, -0.23% has gained 19.4%.
Express (EXPR) tumbled 12% to an intraday low of $9.03, its lowest level since it IPO in May 2010 at an issue price of $17.