Express Inc. (NYSE:EXPR) Plunges Sharply
Express, Inc. (NYSE:EXPR)’s stock is on a roller coaster ride this holiday season. Despite 23% nose dive in its share prices during yesterday’s trade, the stock is about 26% up year to date. More interestingly, the stock marked its fresh 52 week high of $25.05 on December 3, 2013 and gave away half of its yearly gains in the following session. In yesterday’s session, the stock traded with surprisingly high volume of 20.84 million shares against its average 90 day volume of mere 860.2K shares.
“No Thanks” from value focused and budget conscious U.S. consumers also forced Express, Inc. (NYSE:EXPR) to forecast a weaker than expected holiday quarter amidst the highly competitive promotional environment which muted Thanksgiving sales. Among others, this apparel retailer has also now confirmed the toughest holiday shopping sales since 2008.
The retailer expects a profit of $0.66 – $0.71 per share for 4Q14 which is much lower than analysts’ estimates of $0.78 per share. Express, Inc. (NYSE:EXPR) also reduced its full year earnings forecast.
National Retail Federation also reported on Sunday that shoppers spent around 3 percent less during the Thanksgiving weekend than they did a year ago. These figures are certainly going to hurt U.S. retailers and heavy discounting to push their merchandize would make the scenario darker, giving a bow to their sales as well as investor confidence.
Express, Inc. (NYSE:EXPR) is not the only one to face the heat of muted sales during this holiday season and it extends even to retails giants like Wal-Mart Stores, Inc. (NYSE:WMT) and a lifestyle specialty retailer Urban Outfitters, Inc. (NASDAQ:URBN).
Ann Inc. (NYSE:ANN) that operates Ann Taylor and LOFT women’s apparel chains also forecasted lower than expected holiday sales. Though it missed the analyst expectations, comparatively the apparel retailer is performing well compare to its peers – thanks to its more fashionable merchandise.
The Chief Executive Officer of Express, Inc. (NYSE:EXPR), Michael Weiss said, “Thanksgiving week sales exceeded last year’s, however results did not meet our expectations. We had been planning for a promotional holiday season but we now expect the intensity of those promotions to reach heightened levels.”