• Q2 net income increased 25.4% to $15.8m
  • Sales rose 2% to $454.9m 
  • Gross margin declined to 32.2% from 33.6%

US clothing retailer Express has lowered its full-year profit forecasts despite recording a jump in second-quarter net income.

The retailer today (22 August) said it now expects earnings to be in the range of $1.69-1.79 per share, against an earlier forecast of $1.79-1.89 per share.

The revised guidance came as the company said net income increased 25.4% to reach US$15.8m. Sales rose 2% to $454.9m, while comparable sales rose 1%. However, gross margin declined to 32.2% from 33.6%.

"We continued to focus on our growth pillars during the quarter, opening new stores and maintaining double digit growth in e-commerce," said chairman, president and CEO Michael Weiss.

"We were also pleased with the progress against our international growth pillar. To that end, we entered into our third international franchise agreement, this one in Mexico.

"We also firmed up the timing of our US flagship locations in Times Square in New York and Union Square in San Francisco. We expect these flagship locations, scheduled to open by the fall of 2013, to serve as international gateways for our brand."

"As we begin the second half of the year, we believe it is prudent to set our guidance more conservatively and in line with the trend we experienced in the second quarter. 

"We remain confident in our strategies and expect the disciplined execution against our growth pillars to result in another year of growth for Express."