Express tumbles in Q2

Express Inc. cut its annual profit forecast as the chain struggled with declining sales and weak store traffic in its second quarter.



The retailer reported net income of $10.1 million for the quarter ended July 30, short of Wall Street expectations, down from $21 million, in the year-ago period.



Revenue fell 6% to $504.8 million, also below Street forecasts. Same-store sales, which include online sales, fell 8%, which was worse than analysts expected.



In a statement, Express CEO David Kornberg cited “challenging store traffic,” which was compounded by “a lack of clarity across the assortment.”



“We believe we have identified the necessary actions to position Express to regain momentum and we are moving on them,” he said. “Our fall assortment is more cohesive across our wearing occasions, clearly identifying the important trends, and we are aggressively pursuing several marketing initiatives focused on driving new customer acquisition and retention. In addition, we are pleased with our overall inventory position as we begin the fall season.”



For the full year, the company expects adjusted earnings of $1 to $1.14 a share, down from previous guidance for $1.41 to $1.54 a share.