US: Express lowers guidance on weak store traffic
US apparel retailer Express Inc has again lowered its full-year earnings outlook amid a slowdown in consumer traffic.
For the fiscal year ended 1 February, Express said it expects net income in the range of US$117m to $121m. In December, the company had lowered its earnings guidance to $124m-$128m from a previous forecast of $130m-$137m.
Full-year comparable sales are still expected to increase in the low single digit range.
"Our fourth quarter guidance issued in early December 2013 contemplated a promotional holiday season as well as a slowdown in traffic after the Thanksgiving week," said CEO Michael Weiss. "What we experienced was a drop in traffic that was even deeper than anticipated, as consumers waited until much closer to Christmas to shop.
He added: "January traffic to date has been weak and we have remained promotional and expect to maintain this stance throughout the month. While we believe the actions we took, and are taking, are appropriate, it does require us to adjust our fourth quarter and full year guidance accordingly."
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