Apparel retailer Express Inc. (EXPR) reported Wednesday a higher second-quarter profit, reflecting an increase in net sales. On a per share basis, earnings beat analysts' expectations, while topline missed their view. The company also forecast third-quarter earnings below Wall Street estimates and again cut its full-year earnings outlook. Express shares fell about 9 percent in the morning trade.
The company's quarterly net income increased to $15.83 million or $0.18 per share from $12.62 million or $0.14 per share in the previous year.
Excluding items, adjusted earnings in the prior year were $0.17 per share. On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.17 per share for the recent quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 2 percent to $454.88 million, but was below analysts' estimate of $466.98 million. On a same-store basis, sales were up 1 percent, compared to an increase of 6 percent in the previous year.
Looking ahead to the third quarter, the company expects net income to be in the range of $23 million to $28 million, or $0.27 to $0.32 per share. Analysts expect the company to earn $0.37 per share for the quarter.
Comparable sales for the third quarter is expected to be flat to up low single digits compared to an increase of 5 percent in the third quarter of 2011.
For the fourth quarter, Express projected net income in the range of $67.0 million to $71.0 million, or $0.77 to $0.82 per share.
For the full fifty-three week period, earnings are now expected to be in the range of $1.69 to $1.79 per share, compared to the prior forecast of $1.79 to $1.89 per share. Analysts expect the company to report earnings of $1.83 per share for the year.
The firm noted that 2012 is a fifty-three week period compared to a fifty-two week period in 2011 and expects the fifty-third week impact to be in the range of $0.04 to $0.05 per share.
Full-year comparable sales are anticipated to increase low single digits compared to an increase of 6 percent in 2011. Express expects to end the quarter with 618 stores and nearly 5.3 million gross square feet in operation. By the end of the year the company projects to have 625 locations and about 5.4 million gross square feet in operation.
EXPR is currently trading at $15.49, down $1.41 or 8.37 percent, on a volume of 2.24 million shares on the NYSE.
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