Express cuts FY guidance as Q2 sales miss target

US fashion retailer Express has lowered its full-year outlook after its second-quarter sales fell short of expectations.

In the three months to July 30, consolidated net sales increased 2 percent year-on-year to 464.9 million dollars, with consolidated comparable sales up 1 percent.

Express previously said it expected second-quarter sales to increase by mid-single digits.

Meanwhile, Q2 net profit fell to 7 million dollars from 10.6 million dollars a year earlier.

“In the second quarter, we delivered our fifth consecutive quarter of positive comparable sales compared to pre-pandemic levels, drove gross margin expansion of 50 basis points and delivered operating income of 10 million dollars,” Express CEO Tim Baxter told investors.

“While our performance was below our outlook, we achieved solid results despite challenging macroeconomic conditions that worsened as the quarter progressed,” he said.

Express lowered its full-year guidance in light of its second-quarter results.

The retailer now expects year-on-year sales growth to be in the mid-single digits compared to previous guidance of growth of between 8 percent and 10 percent.

Meanwhile, it expects a diluted loss per share of between 0.16 dollars and 0.22 dollars, compared to its previous estimate of diluted earnings per share of between 0.24 dollars and 0.34 dollars.

Baxter continued: “While we have lowered our outlook for the back half of this year to reflect the uncertainty of macroeconomic conditions, we remain committed to our long-term objective of a mid-single digit operating margin.

“We have demonstrated our ability to stay focused on the fundamentals, control the controllables, and operate with both discipline and agility.”