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What to Expect When Express Reports Its Fiscal 4Q17 Results

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Analysts’ expectations

Specialty apparel retailer Express (EXPR) is scheduled to report its fiscal 4Q17 results on March 14, 2018. 

Analysts expect the company to report sales of $686.9 million, a rise of 1.2%, and adjusted EPS (earnings per share) of $0.32, up from the $0.29 it reported in fiscal 4Q16.

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Holiday season sales dismal

On January 9, 2018, Express reported that its holiday season sales performance hadn’t been as expected and that it had lowered its fiscal 4Q17 outlook. This announcement caused the stock to plunge 20% to $7.37.

In fiscal 4Q17, Express expects its EPS to be in the bracket of $0.31–$0.33 compared to its earlier projected range of $0.40–$0.44.

Since January 9, the stock’s price has hardly moved. It closed at $7.34 on March 9, 2018. On a YTD (year-to-date) basis as of March 9, 2018, Express’s stock price has fallen 27.7%. In comparison, on a YTD basis, Foot Locker (FL) has fallen 9.2% to $42.56, and Ascena (ASNA) has fallen 14.5% to $2.01. Gap’s (GPS) stock price has risen 2.9% to $33.07 as of the same date.

Most mall-based retailers, including Express, have been hit hard due to reduced footfall in stores and malls following the rise of e-commerce. E-commerce has quickly gained traction because of the convenience of shopping anytime from a large selection of products with competitive pricing and fast delivery. It’s now imperative for traditional retailers to develop their digital channels to retain market share. Express isn’t too far behind.

In this series on Express’s fiscal 4Q17 results, we’ll discuss the company’s revenue, EPS, and margins in detail. Then we’ll take stock of analysts’ ratings for the company.

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