Express Raises Q4 Guidance, Shares Surge Higher

Shares of Express, Inc. EXPR spiked up at Monday’s open following news that Company has raised its Q4 and full year 2014 outlook.

Q4 Comparable sales are now expected to decline 3-4 percent compared to the Company's previous guidance of a mid to high single digit decline.  

Net income is for the fourth quarter is currently expected to range from $36.5 to $39 million, or $0.43 to $0.46 per diluted share on 84.8 million weighted average shares outstanding.  This compares to the Company's previous guidance of $32 to $38 million, or $0.38 to $0.45 per diluted share.

Based on its revised fourth quarter outlook, the Company has also adjusted its guidance for the 52 week year ending January 31, 2015. Full year comparable sales are now expected to decline in the mid-single digit range, compared to the Company's previous guidance of a mid to high single digit decline. 

Net income for 2014 is now estimated at $63 to $66 million, or $0.74 to $0.77 per diluted share on 84.6 million weighted average shares outstanding. This compares to the Company's previous expectation of $59 to $65 million, or $0.69 to $0.76 per diluted share.

Michael Weiss, Express, Inc.'s Chairman and Chief Executive Officer commented: "The guidance we issued in early December 2014 incorporated our quarter to date results as well as our expectation that the balance of the holiday period would be challenging.  The first three weeks of December did reflect a post-Thanksgiving lull, but business then strengthened markedly through the balance of December and the first week of January, exceeding our expectations.  As a result, we are increasing our fourth quarter and full year guidance."

Express, Inc. recently traded at $14.65, up 3.75 percent.