US: Express Inc lowers guidance, Q3 profit climbs
- 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.
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