On Wednesday, retailer Express Inc. (EXPR) said that full year sales and earnings would fall well below Wall Street expectations, sending EXPR stock plunging more than 10% in morning trading.
EXPR stock sank after EXPR CEO Michael Weiss conceded that the beginning of 2014 had been “extremely difficult” for the company. He noted that store traffic had fallen “significantly” and that the current promotional environment among retailers continues to be “intense.” Though the chain anticipates a return to growth later this year, the EXPR CEO noted that the outlook reflects “our belief that a material uptick in traffic is not necessarily imminent.”
For the full year, EXPR forecasts earnings of between $1.03 and $1.23 a share. That was far worse than the earnings of $1.58 per PAY share that analysts have estimated.
EXPR said that same-store sales may show a low-single digit drop. Wall Street had expected same-store sales to climbed 2.4% for the year. Ohio-based Express Inc. operates about 630 apparel stores in the U.S.
On Tuesday, EXPR stock closed at $18.24 per share. Over the past 12 months, EXPR stock has slipped about 3%.