Express Has Strong First Quarter

by Vicki M. Young
From WWD Issue 05/25/2011
Express Inc. Tuesday posted better-than-expected first-quarter results but delivered second-quarter guidance that fell short of Wall Street’s expectations.

For the three months ended April 30, net income rose 14.6 percent to $35 million, or 39 cents a diluted share, from $30.6 million, also 39 cents, in the year-ago quarter. Excluding special items, EPS in the most recent quarter was 42 cents, 2 cents better than analysts’ consensus estimates.

Sales gained 9.6 percent, to $467.4 million from $426.5 million, and rose 8 percent on a comparable-store basis. Gross margin rose 130 basis points to 38.2 percent of sales from 36.9 percent a year ago.

In an earnings report issued after the close of the markets, the company projected second-quarter net income in the range of $11 million to $13 million, or between 12 cents and 15 cents a diluted share, below analysts’ estimates for EPS of 16 cents. For the full year, the company raised guidance for adjusted earnings to between $1.52 and $1.61 a share. Its previous projection was between $1.48 and $1.60 a diluted share.

Express shares were up 53 cents, or 2.4 percent, to $22.87 Tuesday. However, they fell 6 percent in early after-hours trading.

“Customers are responding favorably to our assortments across our end uses,” said Michael Weiss, president and chief executive officer. “Our store expansion remains on track, including the scheduled opening of our first locations in Canada in September 2011.”

He told Wall Street analysts during a conference call that the women’s business was driven by growth in dresses, pants, knit tops, sweaters and jewelry. Highlights in the men’s business included jackets, shorts and accessories.

According to Weiss, the company raised prices in certain areas, such as the Adidas pants in women’s, with “no significant push-back from our customers.”

Facebook Shopping Means Never Having to Leave the Site

WalletPop
By Barbara Thau

It's a no-brainer why more and more retailers -- from J.C. Penney and apparel chain Express to 1-800-FLOWERS -- are selling to consumers directly on Facebook. The social network has become the portal to people's worlds -- and where they wile way the hours.

But what do shoppers get out of buying from retailers' Facebook pages vs. the company's own e-commerce sites?

For one, Facebook addicts don't have to pull themselves away from the social network in order to shop. And as retailers enhance the interactive appeal of their e-commerce pages on Facebook, shopping on the site is quickly becoming a social outlet for consumers, merchants say.

"Convenience is certainly number one," Lisa Gavales, chief marketing officer of Express, told WalletPop. "We feel if customers are already in the middle of their Facebook experience, why should they have to go somewhere else if they want to shop?"

To that end, the retailer has made their entire merchandise assortment available for purchase on Facebook. And, the inventory updates in real time, Gavales says.

"The second benefit of Facebook shopping is the ease with which you can share and get information from friends," says Gavales. "Customers can 'like' individual items and see what others are liking and why."

J.C. Penney put its entire e-commerce assortment on its Facebook page right before the holidays.

"Our Facebook page hosts a 'Shop' tab, providing a full shopping experience...including checkout, without having to leave the Facebook environment," Kate Coultas, corporate communications senior manager for J.C. Penney, told WalletPop. "By introducing commerce capability, we're able to take our Facebook experience to the next level, providing convenient features that encourage social integration and user contribution as our customers shop," she says.

Like Express, J.C. Penney's Facebook page enables users to "like" and share items and purchases with their friends. In addition, product display pages are integrated with Facebook reviews, allowing Facebook users to comment on products -- which sounds like something akin to community shopping.

For instance, now you can ask your fashionista friend, who always seems to be sporting an effortlessly put-together look, if that slouchy tunic you're eyeing is worth buying -- or bailing.

Indeed, says Gavales, "Facebook shopping has the additional appeal of being a seamless transition from chatting with friends about shopping to actually doing it!"