Express slashes outlook despite Q2 income growth
COLUMBUS, Ohio — Express Inc. reported a 25% increase in net income for the second quarter. But the retailer slashed its profit outlook for the year and said that same-store sales barely rose last quarter and that it expects about the same for the rest of the year.
Express earned $15.8 million for the quarter ended July 28, better than analysts expected, compared with $12.6 million in the year-ago period.
Revenue increased 2% to $454.9 million, short of the $467 million analysts had expected. Same-store sales inched up 1%.
Express, which expects to end 2012 with 625 stores in the United States, Puerto Rico and Canada, said it will open flagship stores in Times Square in New York and Union Square in San Francisco. The company also said it has signed its third international franchise agreement, this one in Mexico.
“We expect these flagship locations, scheduled to open by the fall of 2013, to serve as international gateways for our brand,” stated Michael Weiss, chairman, president, and CEO, Express.