Express Q3 net income falls, still tops Street

Columbus, Ohio – Express Inc. topped Wall Street expectations with net income of $14.6 million during the third quarter of fiscal 2014, a 24% decline from $19.3 million the same quarter the previous year. Increased buying and occupancy costs contributed to the decline in profits.



Net sales decreased 1% to $497.6 million from $503.8 million. Same-store sales, including e-commerce sales, decreased 5%. E-commerce sales rose 11% to $79.1 million.



“We saw an improvement in our merchandise margin and comparable sales were unchanged from the second quarter,” said Michael Weiss, chairman and CEO. “Our comparable sales reflected a weakening in our store performance as the quarter progressed that was only partially offset by strength in e-commerce and outlets. As we began the fourth quarter, e-commerce enjoyed a strong Thanksgiving push through Cyber Monday and our outlet sales continued to exceed initial expectations.”



For the fourth quarter of fiscal 2014, Express is predicting negative growth in net income and same-store sales.