• Q3 net income climbs 10.9%
  • Sales grow 7%
  • Gross margin improves 60 bps
  • Lowers full-year earnings guidance

US apparel retailer Express Inc has lowered its full-year earnings guidance, despite booking an increase in profits in the third quarter.

Net income in the three months ended 2 November reached US$19.3m, up 10.9% on $17.4m recorded in the comparable period last year.

CEO Michael Weiss said the results were achieved against the backdrop of an "extremely challenging and promotional" retail environment.

Sales increased 7% to $503m from $468.5m, while comparable sales were up 5%.

Gross margin improved 60 basis points over last year's third quarter, representing 32.9% of net sales.

The company, however, lowered its full-year earnings guidance to $124m-$128m from a previous forecast of $130m-$137m. Sales are expected to come in at low single digits from previous guidance of low to mid single digits.