Express’ Stock Falls After Disappointing Quarter

Shares of the apparel and accessories retailer Express plunged more than 13 percent to $4.37 in midday trading Wednesday after a disappointing quarter. Express’ fourth-quarter sales fell 10 percent to $628.4 million. And losses for the three months ended Feb. 2 totaled $1.1 million, down from profits of $27 million a year earlier. “Our overall performance in the period was disappointing,” said Matthew Moellering, the company’s interim chief executive officer and president. But he added on a conference call with analysts that Express is “a resilient brand” and one that has driven $2 billion-plus in sales annually for some time. He also pointed out that former ceo David Kornberg’s abrupt exit in January cost Express $5.4 million. Still, the downward trend has been happening for some time. Express’ stock is down roughly 35 percent year-over-year. Last quarter, sales of jeans were low at the retailer, despite the thriving denim market. This quarter casual tops showed weakness. Susan Anderson, an analyst at B. Riley FBR, wrote in a recent note that the retailer’s “inability to deliver on-trend merchandise could have a negative impact on the stock.” FBR set a target price of $6 on the company’s stock with a neutral rating. “Competitors sell their

Follow WWD on Twitter or become a fan on Facebook.

Read More...

from WWDWWD https://ift.tt/2TKZGJj