NEW YORK (TheStreet) -- Shares of Express Inc. (EXPR) - Get Report are gaining by 10.06% to $18.60 in pre-market trading on Wednesday morning, after the mall-based retailer reported better than expected financial results for the 2015 second quarter.
Express said net income for the 13 weeks ended August 1 came in at $21 million, or 25 cents per diluted share, compared to $6.9 million, or 8 cents per diluted share for the 2014 second quarter.
Analysts surveyed by Thomson Reuters were expecting earnings of 16 cents per share for the period.
Net sales grew by 11% to $535.6 million for the latest quarter, analysts had forecast for revenue of $504.8 million.
Express attributes its tripled income to an improvement in sales and profit margins due to better products and a reduction in promotional activity.
"Strong fashion supported by brand focused marketing and an elevation of our customer experience drove a 7% increase in comparable sales. Disciplined inventory management, combined with the appeal of our product assortment, enabled us to reduce the breadth, depth and frequency of our promotions. Growth continued across our distribution channels of retail stores, e-commerce and factory outlets," company CEO David Kornberg said in a statement.
Express upped its full year earnings guidance to a range between $1.23 and $1.30 per share, from its previous estimates of $1.11 to $1.22 per share.
Separately, TheStreet Ratings team rates EXPRESS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPRESS INC (EXPR) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
You can view the full analysis from the report here: EXPR Ratings Report