Shares of apparel retailer Express Inc. (EXPR) - Get Report fell more than 10% to $6.45 on Thursday, Nov. 29, after the company reported fiscal third-quarter results that surpassed forecasts, but gave lower-than-expected earnings and sales guidance for the current quarter.
Net income for the quarter ended Nov. 3, rose to $7.97 million, or 11 cents a share, from $6.03 million, or 8 cents, in the comparable year-earlier period. Analysts surveyed by FactSet had collectively predicted earnings per share of 10 cents.
Sales rose 2% to $514.96 million, above FactSet consensus estimates of $505.5 million, while same-store sales were flat vs. expectations of a 0.2% decline.
The company painted a less-rosy picture for the current fiscal quarter, saying it now anticipates per-share earnings of 11 cents to 20 cents - well below the consensus estimates of 31 cents - and a decline in same-store sales of between 5% to 7% vs. expectations of zero.
"The apparel specialty retail environment continues to be highly promotional and our traffic has been challenging," Express CEO David Kornberg said in a statement.
Separately, the company announced a new $150 million share repurchase program.