Express Beats Q2 Expectations

reported stronger-than-expected results for the second quarter on Wednesday. The Columbus, Ohio-based company reported quarterly net income of $21 million, or $0.25 per share, versus $6.9 million, or $0.08 per share, in the year-ago quarter. Its revenue climbed 11 percent year-over-year to $535.6 million from $481.4 million. However, analysts were expecting a profit of $0.16 per share on revenue of $504.8 million. The average estimate among 5 Estimize users was for earnings of $0.17 per share and revenue of $507.42 million. Its comparable sales rose 7 percent in the recent quarter, versus a 5 percent drop in the year-ago quarter. E-commerce sales surged 21 percent to $75.0 million. Selling, general, and administrative expenses rose to $140.6 million from $121.9 million. Its gross margin expanded to 33.1 percent, versus 28.3 percent in the year-earlier period. At the end of the quarter, the company had $155.6 million in cash and cash equivalents, compared to $253.3 million at the end of the year-ago quarter. David Kornberg, the Company's President and Chief Executive Officer, said, "Looking towards the second half of the year, I believe we are well positioned to further grow our business and enhance the Express brand. We expect the continued execution of our strategy to result in productivity and profitability gains for our Company and increased value for our shareholders." Express now projects FY15 earnings of $1.30 to $1.37 per share and comparable sales to rise in mid-single digit range. For the third quarter, the company expects adjusted earnings of $0.26 to $0.29 per share and comparable sales to increase in mid-single digit range. Express shares rose 1.14 percent to close at $16.90 yesterday.