The firm said it lowered its price target on the apparel and accessories retailer following the company's 2014 first quarter results, which showed a drop in net sales and net earnings. For the most recent quarter, Express posted a 10% decline in net sales to $460.7 million, compared to $509.4 million from the 2013 first quarter.
The company reported a net income of $5.1 million, or 6 cents per diluted share versus a net income of $32.4 million, or 38 cents per diluted share from the year ago quarter.
Must Read: Warren Buffett's 25 Favorite Stocks
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash problems.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.4%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for EXPRESS INC is currently lower than what is desirable, coming in at 34.49%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.69% trails that of the industry average.
- Net operating cash flow has decreased to $157.44 million or 12.64% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, EXPRESS INC has marginally lower results.
- You can view the full analysis from the report here: EXPR Ratings Report