In the last trading session, the stock price of Express, Inc. (NYSE:EXPR) declined more than 8% to close the day at $5.88. There was no obvious reason noted for the sharp decline in Express stock.
A couple of months ago, Express released its financial report for Q2 2017. During the earnings release, David Kornberg, the CEO and President, expressed that comparable sales and earnings came at the top end of their guidance, as their key plans recorded further traction. The e-commerce performance was remarkable, jumping 28% over preceding year, and store comps demonstrated further sequential improvement.
Mr. Kornberg added that as they look ahead to the 2H2017, they are positive about their ability to drive further performance in a changing retail industry. They anticipate the momentum of their plans to continue to establish and contribute more considerably. Their marketing measures are resulting in enhanced trends in engagement and they consider they will drive increased consumer acquisition and retention.
Express management anticipate e-commerce sales growth to continue to be solid and store performance to improve sequentially, led in part by company’s expanded Omni-channel capabilities. They remain focused on managing overall costs and witness clear opportunities to improve the overall efficiency of their business.
The balance sheet continues to be strong with over $170 million in cash and no debt, and they continue to anticipate to generate strong cash flow. Kornberg added that their confidence in the conviction and strategy in their long-term prospect remains resolute and they are dedicated to leading shareholder value.
In Q2 2017, second quarter comparable sales dropped by 4%. Loss came at $0.15 per share on an adjusted basis discounting costs linked to the exit of Canada. E-commerce sales jumped 28%, constituting for 19% of net sales. Omni-channel capabilities develop with “ship from store” now working in 150 outlets.