We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Express Inc | NYSE:EXPR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.29 | 0 | 01:00:00 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
26-2828128
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
1 Express Drive
Columbus, Ohio
|
|
43230
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
|
|
|
|
Non-accelerated filer
|
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
o
|
•
|
changes in consumer spending and general economic conditions;
|
•
|
our ability to identify and respond to new and changing fashion trends, customer preferences, and other related factors;
|
•
|
fluctuations in our sales, results of operations, and cash levels on a seasonal basis and due to a variety of other factors, including our product offerings relative to customer demand, the mix of merchandise we sell, promotions, and inventory levels;
|
•
|
competition from other retailers;
|
•
|
customer traffic at malls, shopping centers, and at our stores and online;
|
•
|
our dependence on a strong brand image;
|
•
|
our ability to develop and maintain a relevant and reliable omni-channel experience for our customers;
|
•
|
the failure or breach of information systems upon which we rely;
|
•
|
our ability to protect our customer data from fraud and theft;
|
•
|
our dependence upon independent third parties to manufacture all of our merchandise;
|
•
|
changes in the cost of raw materials, labor, and freight;
|
•
|
supply chain disruption;
|
•
|
our dependence upon key executive management;
|
•
|
our growth strategy, including our ability to improve the productivity of our existing stores, open new stores, and grow our e-commerce business;
|
•
|
our substantial lease obligations;
|
•
|
our reliance on third parties to provide us with certain key services for our business;
|
•
|
claims made against us resulting in litigation or changes in laws and regulations applicable to our business;
|
•
|
our inability to protect our trademarks or other intellectual property rights that may preclude the use of our trademarks or other intellectual property around the world;
|
•
|
restrictions imposed on us under the terms of our asset-based loan facility, including restrictions on our ability to repurchase our common stock;
|
•
|
fluctuations in energy costs;
|
•
|
changes in tax requirements, results of tax audits, and other factors that may cause fluctuations in our effective tax rate;
|
•
|
impairment charges on long-lived assets; and
|
•
|
our failure to maintain adequate internal controls.
|
|
|
|
PART I
|
||
|
|
|
ITEM 1.
|
||
|
|
|
ITEM 2.
|
||
|
|
|
ITEM 3.
|
||
|
|
|
ITEM 4.
|
||
|
|
|
PART II
|
||
|
|
|
ITEM 1.
|
||
|
|
|
ITEM 1A.
|
||
|
|
|
ITEM 2.
|
||
|
|
|
ITEM 3.
|
||
|
|
|
ITEM 4.
|
||
|
|
|
ITEM 5.
|
||
|
|
|
ITEM 6.
|
ITEM 1.
|
FINANCIAL STATEMENTS.
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||||||||||
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||||||
NET SALES
|
$
|
506,090
|
|
|
$
|
546,616
|
|
|
$
|
1,513,766
|
|
|
$
|
1,584,576
|
|
COST OF GOODS SOLD, BUYING AND OCCUPANCY COSTS
|
354,373
|
|
|
355,527
|
|
|
1,043,382
|
|
|
1,049,853
|
|
||||
Gross profit
|
151,717
|
|
|
191,089
|
|
|
470,384
|
|
|
534,723
|
|
||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
||||||||
Selling, general, and administrative expenses
|
136,633
|
|
|
146,585
|
|
|
405,547
|
|
|
420,334
|
|
||||
Other operating (income) expense, net
|
(17
|
)
|
|
(29
|
)
|
|
28
|
|
|
43
|
|
||||
Total operating expenses
|
136,616
|
|
|
146,556
|
|
|
405,575
|
|
|
420,377
|
|
||||
|
|
|
|
|
|
|
|
||||||||
OPERATING INCOME
|
15,101
|
|
|
44,533
|
|
|
64,809
|
|
|
114,346
|
|
||||
|
|
|
|
|
|
|
|
||||||||
INTEREST EXPENSE, NET
|
567
|
|
|
1,207
|
|
|
12,845
|
|
|
14,751
|
|
||||
OTHER EXPENSE (INCOME), NET
|
90
|
|
|
70
|
|
|
(404
|
)
|
|
140
|
|
||||
INCOME BEFORE INCOME TAXES
|
14,444
|
|
|
43,256
|
|
|
52,368
|
|
|
99,455
|
|
||||
INCOME TAX EXPENSE
|
2,827
|
|
|
16,949
|
|
|
17,725
|
|
|
39,058
|
|
||||
NET INCOME
|
$
|
11,617
|
|
|
$
|
26,307
|
|
|
$
|
34,643
|
|
|
$
|
60,397
|
|
|
|
|
|
|
|
|
|
||||||||
OTHER COMPREHENSIVE INCOME:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation (loss) gain
|
(367
|
)
|
|
(134
|
)
|
|
615
|
|
|
(590
|
)
|
||||
COMPREHENSIVE INCOME
|
$
|
11,250
|
|
|
$
|
26,173
|
|
|
$
|
35,258
|
|
|
$
|
59,807
|
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.15
|
|
|
$
|
0.31
|
|
|
$
|
0.44
|
|
|
$
|
0.72
|
|
Diluted
|
$
|
0.15
|
|
|
$
|
0.31
|
|
|
$
|
0.44
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
||||||||
Basic
|
78,401
|
|
|
84,240
|
|
|
78,754
|
|
|
84,453
|
|
||||
Diluted
|
78,595
|
|
|
84,849
|
|
|
79,151
|
|
|
85,009
|
|
|
Thirty-Nine Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
34,643
|
|
|
$
|
60,397
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
58,960
|
|
|
56,103
|
|
||
Loss on disposal of property and equipment
|
907
|
|
|
1,313
|
|
||
Impairment charge
|
829
|
|
|
—
|
|
||
Amortization of lease financing obligation discount
|
11,354
|
|
|
—
|
|
||
Excess tax benefit from share-based compensation
|
—
|
|
|
(334
|
)
|
||
Share-based compensation
|
10,783
|
|
|
15,114
|
|
||
Non-cash loss on extinguishment of debt
|
—
|
|
|
5,314
|
|
||
Deferred taxes
|
(385
|
)
|
|
(6,805
|
)
|
||
Landlord allowance amortization
|
(8,345
|
)
|
|
(9,208
|
)
|
||
Payment of original issue discount
|
—
|
|
|
(2,812
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables, net
|
5,883
|
|
|
(2,546
|
)
|
||
Inventories
|
(86,468
|
)
|
|
(123,806
|
)
|
||
Accounts payable, deferred revenue, and accrued expenses
|
28,749
|
|
|
42,514
|
|
||
Other assets and liabilities
|
2,954
|
|
|
20,389
|
|
||
Net cash provided by operating activities
|
59,864
|
|
|
55,633
|
|
||
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Capital expenditures
|
(80,900
|
)
|
|
(85,013
|
)
|
||
Purchase of intangible assets
|
(21
|
)
|
|
(35
|
)
|
||
Investment in equity interests
|
(10,133
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(91,054
|
)
|
|
(85,048
|
)
|
||
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Repayment of long-term debt
|
—
|
|
|
(198,038
|
)
|
||
Costs incurred in connection with debt arrangements
|
—
|
|
|
(1,006
|
)
|
||
Payments on lease financing obligations
|
(1,186
|
)
|
|
(1,168
|
)
|
||
Excess tax benefit from share-based compensation
|
—
|
|
|
334
|
|
||
Proceeds from exercise of stock options
|
2,735
|
|
|
1,265
|
|
||
Repurchase of common stock under share repurchase program (see Note 11)
|
(51,538
|
)
|
|
(22,020
|
)
|
||
Repurchase of shares for tax withholding obligations
|
(4,498
|
)
|
|
(4,400
|
)
|
||
Net cash used in financing activities
|
(54,487
|
)
|
|
(225,033
|
)
|
||
|
|
|
|
|
|
||
EFFECT OF EXCHANGE RATE ON CASH
|
629
|
|
|
(496
|
)
|
||
|
|
|
|
|
|
||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(85,048
|
)
|
|
(254,944
|
)
|
||
CASH AND CASH EQUIVALENTS, Beginning of period
|
186,903
|
|
|
346,159
|
|
||
CASH AND CASH EQUIVALENTS, End of period
|
$
|
101,855
|
|
|
$
|
91,215
|
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||||||||||
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Apparel
|
$
|
446,999
|
|
|
$
|
482,472
|
|
|
$
|
1,327,090
|
|
|
$
|
1,394,458
|
|
Accessories and other
|
51,301
|
|
|
52,898
|
|
|
157,963
|
|
|
155,110
|
|
||||
Other revenue
|
7,790
|
|
|
11,246
|
|
|
28,713
|
|
|
35,008
|
|
||||
Total net sales
|
$
|
506,090
|
|
|
$
|
546,616
|
|
|
$
|
1,513,766
|
|
|
$
|
1,584,576
|
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||||||||||
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Stores
|
$
|
401,963
|
|
|
$
|
451,525
|
|
|
$
|
1,241,669
|
|
|
$
|
1,313,126
|
|
E-commerce
|
96,337
|
|
|
83,845
|
|
|
243,384
|
|
|
236,442
|
|
||||
Other revenue
|
7,790
|
|
|
11,246
|
|
|
28,713
|
|
|
35,008
|
|
||||
Total net sales
|
$
|
506,090
|
|
|
$
|
546,616
|
|
|
$
|
1,513,766
|
|
|
$
|
1,584,576
|
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||||||
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands)
|
||||||||||
Weighted-average shares - basic
|
78,401
|
|
|
84,240
|
|
|
78,754
|
|
|
84,453
|
|
Dilutive effect of stock options, restricted stock units, and restricted stock
|
194
|
|
|
609
|
|
|
397
|
|
|
556
|
|
Weighted-average shares - diluted
|
78,595
|
|
|
84,849
|
|
|
79,151
|
|
|
85,009
|
|
|
October 29, 2016
|
||||||||
|
Level 1
|
Level 2
|
Level 3
|
||||||
|
(in thousands)
|
||||||||
Money market funds
|
$
|
63,430
|
|
$
|
—
|
|
$
|
—
|
|
|
|
||||||||
|
January 30, 2016
|
||||||||
|
Level 1
|
Level 2
|
Level 3
|
||||||
|
(in thousands)
|
||||||||
Money market funds
|
$
|
152,069
|
|
$
|
—
|
|
$
|
—
|
|
|
October 29, 2016
|
||||||||||
|
Cost
|
|
Accumulated
Amortization
|
|
Ending Net Balance
|
||||||
|
(in thousands)
|
||||||||||
Tradename/domain names/trademarks
|
$
|
197,618
|
|
|
$
|
—
|
|
|
$
|
197,618
|
|
Licensing arrangements
|
425
|
|
|
208
|
|
|
217
|
|
|||
|
$
|
198,043
|
|
|
$
|
208
|
|
|
$
|
197,835
|
|
|
January 30, 2016
|
||||||||||
|
Cost
|
|
Accumulated
Amortization
|
|
Ending Net Balance
|
||||||
|
(in thousands)
|
||||||||||
Tradename/domain names/trademarks
|
$
|
197,597
|
|
|
$
|
—
|
|
|
$
|
197,597
|
|
Licensing arrangements
|
425
|
|
|
172
|
|
|
253
|
|
|||
|
$
|
198,022
|
|
|
$
|
172
|
|
|
$
|
197,850
|
|
|
Thirteen Weeks Ended
|
|
Thirty-Nine Weeks Ended
|
||||||||||||
|
October 29, 2016
|
|
October 31, 2015
|
|
October 29, 2016
|
|
October 31, 2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Restricted stock units and restricted stock
|
$
|
2,701
|
|
|
$
|
3,283
|
|
|
$
|
8,701
|
|
|
$
|
12,341
|
|
Stock options
|
502
|
|
|
762
|
|
|
2,082
|
|
|
2,773
|
|
||||
Total share-based compensation
|
$
|
3,203
|
|
|
$
|
4,045
|
|
|
$
|
10,783
|
|
|
$
|
15,114
|
|
|
Number of
Shares
|
|
Grant Date
Weighted Average
Exercise Price Per Share
|
|
Weighted-Average Remaining Contractual Life (in years)
|
|
Aggregate Intrinsic Value
|
|||||
|
(in thousands, except per share amounts and years)
|
|||||||||||
Outstanding, January 31, 2016
|
3,446
|
|
|
$
|
18.31
|
|
|
|
|
|
||
Granted
|
229
|
|
|
$
|
21.14
|
|
|
|
|
|
||
Exercised
|
(159
|
)
|
|
$
|
17.23
|
|
|
|
|
|
||
Forfeited or expired
|
(1,184
|
)
|
|
$
|
19.20
|
|
|
|
|
|
||
Outstanding, October 29, 2016
|
2,332
|
|
|
$
|
18.21
|
|
|
5.9
|
|
$
|
28
|
|
Expected to vest at October 29, 2016
|
547
|
|
|
$
|
18.37
|
|
|
8.3
|
|
$
|
—
|
|
Exercisable at October 29, 2016
|
1,760
|
|
|
$
|
18.14
|
|
|
5.1
|
|
$
|
28
|
|
|
Thirty-Nine Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands, except per share amounts)
|
||||||
Weighted average grant date fair value of options granted (per share)
|
$
|
9.50
|
|
|
$
|
7.79
|
|
Total intrinsic value of options exercised
|
$
|
547
|
|
|
$
|
175
|
|
|
Thirty-Nine Weeks Ended
|
||||
|
October 29, 2016
|
|
October 31, 2015
|
||
Risk-free interest rate
(1)
|
1.60
|
%
|
|
1.60
|
%
|
Price volatility
(2)
|
43.15
|
%
|
|
47.81
|
%
|
Expected term (years)
(3)
|
6.54
|
|
|
6.25
|
|
Dividend yield
(4)
|
—
|
|
|
—
|
|
(1)
|
Represents the yield on U.S. Treasury securities with a term consistent with the expected term of the stock options.
|
(2)
|
Primarily based on the historical volatility of the Company's common stock over a period consistent with the expected term of the stock options.
|
(3)
|
Beginning in 2016, the Company calculated the expected term assumption using the midpoint scenario, which combines historical exercise data with hypothetical exercise data for outstanding options. The Company believes this data currently represents the best estimate of the expected term of new employee options.
|
(4)
|
The Company does not currently plan on paying regular dividends.
|
|
Number of
Shares
|
Grant Date
Weighted Average
Fair Value Per Share
|
|||
|
(in thousands, except per share amounts)
|
||||
Unvested, January 31, 2016
|
2,212
|
|
$
|
16.66
|
|
Granted
(1)
|
653
|
|
$
|
20.45
|
|
Performance Shares Adjustment
(2)
|
(50
|
)
|
$
|
16.28
|
|
Vested
|
(790
|
)
|
$
|
17.26
|
|
Forfeited
|
(128
|
)
|
$
|
17.55
|
|
Unvested, October 29, 2016
|
1,897
|
|
$
|
17.66
|
|
(1)
|
Approximately
0.3 million
RSUs with
three
-year performance conditions were granted in the first quarter of 2016.
None
of these RSUs are currently included as granted in the table above. The number of performance-based RSUs that are ultimately earned may vary from
0%
to
200%
of target depending on the achievement of predefined financial performance targets.
|
(2)
|
Relates to a change in estimate of RSUs with performance conditions granted in 2015. Currently,
112%
of the number of shares granted in 2015 are expected to vest based on estimates against predefined financial performance targets.
|
Q3 2016 vs. Q3 2015
|
•
Net sales decreased 7% to $506.1 million
•
Comparable sales decreased 8%
•
Comparable sales (excluding e-commerce sales) decreased 13%
•
E-commerce sales increased 15% to $96.3 million
•
Gross margin percentage decreased 500 basis points
•
Operating income decreased 66% to $15.1 million
•
Net income decreased 56% to $11.6 million
•
Diluted earnings per share (EPS) decreased 52% to $0.15
|
•
|
increasing the productivity of our existing stores;
|
•
|
opening new outlet stores; and
|
•
|
growing our e-commerce business.
|
•
|
supporting and developing our employees;
|
•
|
providing an exceptional brand and customer experience; and
|
•
|
upgrading and enhancing our systems and processes to enable growth.
|
Store Performance
|
|
Real Estate Activity
|
In the third quarter of 2016, comparable sales (excluding e-commerce sales) decreased 13%. We believe this decrease was primarily driven by the following:
•
Decreased traffic at our stores due in part to continued traffic challenges in malls; and
•
A lack of fashion clarity in our product assortment, which offered too many choices.
|
|
As of October 29, 2016, we operated 653 stores, including 99 factory outlet stores.
Third quarter of 2016 store openings and closures:
•
Opened five new factory outlet stores in the U.S.
Expectations for the remainder of 2016:
•
Open five factory outlet stores, one of which will be converted from an existing retail location.
•
Close two U.S. retail stores, one of which will be converted to an outlet location.
|
E-commerce
|
|
Other Initiatives
|
In the third quarter of 2016, our e-commerce sales increased 15% compared to the third quarter of 2015. The increase was primarily driven by:
•
A strong and clear marketing and merchandising message aimed at our target demographic; and
•
The launch of several key initiatives, including improved site navigation and continued optimization across search and category pages.
E-commerce sales represented 19% of our total net sales in the third quarter of 2016.
|
|
•
International. As of October 29, 2016, we were earning revenue from 20 franchise locations in Latin America and the Middle East. During the fourth quarter of 2015, we made the strategic decision to shift our international focus to growth within the Americas. As a result, 13 franchise stores in the Middle East and South Africa have been closed in 2016. The remaining two stores are expected to be closed by the end of 2016.
•
Systems and Processes. In the third quarter of 2016, we launched a new retail management system and a new enterprise planning system. We believe these systems will lead to improved efficiencies in our business as we begin to fully leverage their capabilities.
|
Financial Measures
|
Description
|
Discussion
|
Net Sales
|
Revenue from the sale of merchandise, less returns and discounts, as well as shipping and handling revenue related to e-commerce, revenue from rental of our LED sign in Times Square, gift card breakage, and revenue earned from our franchise agreements.
|
Our business is seasonal, and we have historically realized a higher portion of our net sales in the third and fourth quarters due primarily to the impact of the holiday season. Generally, approximately 45% of our annual net sales occur in the Spring season (first and second quarters) and 55% occur in the Fall season (third and fourth quarters).
|
Comparable Sales
|
Comparable sales is a measure of the amount of sales generated in a period relative to the amount of sales generated in the comparable prior year period.
Comparable sales includes:
•
Sales from stores that were open 12 months or more as of the end of the reporting period, including conversions
•
E-commerce sales
Comparable sales excludes:
•
Sales from stores where the square footage has changed by more than 20% due to remodel or relocation activity
•
Sales from stores in a phased remodel where a portion of the store is under construction and therefore not productive selling space
|
Our business and our comparable sales are subject, at certain times, to calendar shifts, which may occur during key selling periods close to holidays such as Easter, Thanksgiving, and Christmas, and regional fluctuations for events such as sales tax holidays.
|
Cost of goods sold, buying and occupancy costs
|
Includes the following:
•
Direct cost of purchased merchandise
•
Inventory shrink and other adjustments
•
Inbound and outbound freight
•
Merchandising, design, planning and allocation, and manufacturing/production costs
•
Occupancy costs related to store operations (such as rent and common area maintenance, utilities, and depreciation on assets)
•
Logistics costs associated with our e-commerce business
|
Our cost of goods sold typically increases in higher volume quarters because the direct cost of purchased merchandise is tied to sales.
The primary drivers of the costs of individual goods are raw materials, labor in the countries where our merchandise is sourced, and logistics costs associated with transporting our merchandise.
Buying and occupancy costs related to stores are largely fixed and do not necessarily increase as volume increases.
Changes in the mix of our products may also impact our overall cost of goods sold, buying and occupancy costs.
|
Financial Measures
|
Description
|
Discussion
|
Gross Profit/Gross Margin
|
Gross profit is net sales minus cost of goods sold, buying and occupancy costs. Gross margin measures gross profit as a percentage of net sales.
|
Gross profit/gross margin is impacted by the price at which we are able to sell our merchandise and the cost of our product.
We review our inventory levels on an on-going basis in order to identify slow-moving merchandise and generally use markdowns to clear such merchandise. The timing and level of markdowns are driven primarily by seasonality and customer acceptance of our merchandise and have a direct effect on our gross margin.
Any marked down merchandise that is not sold is marked-out-of-stock. We use third-party vendors to dispose of this marked-out-of-stock merchandise.
|
Selling, General, and Administrative Expenses
|
Includes operating costs not included in cost of goods sold, buying and occupancy costs such as:
•
Payroll and other expenses related to operations at our corporate offices
•
Store expenses other than occupancy costs
•
Marketing expenses, including production, mailing, print, and digital advertising costs, among other things
|
With the exception of store payroll, certain marketing expenses, and incentive compensation, selling, general, and administrative expenses generally do not vary proportionally with net sales. As a result, selling, general, and administrative expenses as a percentage of net sales are usually higher in lower volume quarters and lower in higher volume quarters.
|
|
Thirteen Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
Net sales (in thousands)
|
$
|
506,090
|
|
|
$
|
546,616
|
|
Comparable sales percentage change
|
(8
|
)%
|
|
6
|
%
|
||
Comparable sales percentage change (excluding e-commerce sales)
|
(13
|
)%
|
|
6
|
%
|
||
Gross square footage at end of period (in thousands)
|
5,639
|
|
|
5,684
|
|
||
Number of:
|
|
|
|
||||
Stores open at beginning of period
|
648
|
|
|
637
|
|
||
New retail stores
|
—
|
|
|
1
|
|
||
New outlet stores
|
5
|
|
|
18
|
|
||
Retail stores converted to outlets
|
—
|
|
|
(1
|
)
|
||
Closed stores
|
—
|
|
|
(1
|
)
|
||
Stores open at end of period
|
653
|
|
|
654
|
|
|
Thirteen Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands, except percentages)
|
||||||
Cost of goods sold, buying and occupancy costs
|
$
|
354,373
|
|
|
$
|
355,527
|
|
Gross profit
|
$
|
151,717
|
|
|
$
|
191,089
|
|
Gross margin percentage
|
30.0
|
%
|
|
35.0
|
%
|
|
Thirteen Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands, except percentages)
|
||||||
Selling, general, and administrative expenses
|
$
|
136,633
|
|
|
$
|
146,585
|
|
Selling, general, and administrative expenses, as a percentage of net sales
|
27.0
|
%
|
|
26.8
|
%
|
|
Thirteen Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands)
|
||||||
Income tax expense
|
$
|
2,827
|
|
|
$
|
16,949
|
|
|
Thirty-Nine Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
Net sales (in thousands)
|
$
|
1,513,766
|
|
|
$
|
1,584,576
|
|
Comparable sales percentage change
|
(7
|
)%
|
|
7
|
%
|
||
Comparable sales percentage change (excluding e-commerce sales)
|
(9
|
)%
|
|
5
|
%
|
||
Gross square footage at end of period (in thousands)
|
5,639
|
|
|
5,684
|
|
||
Number of:
|
|
|
|
||||
Stores open at beginning of period
|
653
|
|
|
641
|
|
||
New retail stores
|
—
|
|
|
1
|
|
||
New outlet stores
|
18
|
|
|
37
|
|
||
Retail stores converted to outlets
|
(3
|
)
|
|
(2
|
)
|
||
Closed stores
|
(15
|
)
|
|
(23
|
)
|
||
Stores open at end of period
|
653
|
|
|
654
|
|
|
Thirty-Nine Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands, except percentages)
|
||||||
Cost of goods sold, buying and occupancy costs
|
$
|
1,043,382
|
|
|
$
|
1,049,853
|
|
Gross profit
|
$
|
470,384
|
|
|
$
|
534,723
|
|
Gross margin percentage
|
31.1
|
%
|
|
33.7
|
%
|
|
Thirty-Nine Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands, except percentages)
|
||||||
Selling, general, and administrative expenses
|
$
|
405,547
|
|
|
$
|
420,334
|
|
Selling, general, and administrative expenses, as a percentage of net sales
|
26.8
|
%
|
|
26.5
|
%
|
|
Thirty-Nine Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands)
|
||||||
Interest expense, net
|
$
|
12,845
|
|
|
$
|
14,751
|
|
|
Thirty-Nine Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands)
|
||||||
Income tax expense
|
$
|
17,725
|
|
|
$
|
39,058
|
|
|
Thirty-Nine Weeks Ended
|
||||||
|
October 29, 2016
|
|
October 31, 2015
|
||||
|
(in thousands, except per share amounts)
|
||||||
Net Income
|
$
|
34,643
|
|
|
$
|
60,397
|
|
Adjusted Net Income
|
$
|
41,569
|
|
|
$
|
66,313
|
|
Diluted Earnings Per Share
|
$
|
0.44
|
|
|
$
|
0.71
|
|
Adjusted Diluted Earnings Per Share
|
$
|
0.53
|
|
|
$
|
0.78
|
|
|
Thirty-Nine Weeks Ended October 29, 2016
|
|||||||||
(in thousands, except per share amounts)
|
Net Income
|
|
Diluted Earnings per Share
|
|
Weighted Average Diluted Shares Outstanding
|
|||||
Reported GAAP Measure
|
$
|
34,643
|
|
|
$
|
0.44
|
|
|
79,151
|
|
Interest Expense (a)
|
11,354
|
|
|
0.14
|
|
|
|
|||
Income Tax Benefit (b)
|
(4,428
|
)
|
|
(0.06
|
)
|
|
|
|||
Adjusted Non-GAAP Measure
|
$
|
41,569
|
|
|
$
|
0.53
|
|
|
|
(a)
|
Represents non-core items related to the amendment of the Times Square Flagship store lease discussed in Note 7 of our unaudited Consolidated Financial Statements.
|
(b)
|
Represents the tax impact of the interest expense adjustment at our statutory rate of approximately
39%
for the
thirty-nine weeks ended October 29, 2016
.
|
|
Thirty-Nine Weeks Ended October 31, 2015
|
|||||||||
(in thousands, except per share amounts)
|
Net Income
|
|
Diluted Earnings per Share
|
|
Weighted Average Diluted Shares Outstanding
|
|||||
Reported GAAP Measure
|
$
|
60,397
|
|
|
$
|
0.71
|
|
|
85,009
|
|
Interest Expense (a)
|
9,657
|
|
|
0.11
|
|
|
|
|||
Income Tax Benefit (b)
|
(3,741
|
)
|
|
(0.04
|
)
|
|
|
|||
Adjusted Non-GAAP Measure
|
$
|
66,313
|
|
|
$
|
0.78
|
|
|
|
(a)
|
Includes the redemption premium paid, the write-off of unamortized debt issuance costs, and the write-off of the unamortized debt discount related to the redemption of all
$200.9 million
of our Senior Notes.
|
(b)
|
Represents the tax impact of the interest expense adjustment at our statutory rate of approximately
39%
for the
thirty-nine weeks ended October 31, 2015
.
|
|
Thirty-Nine Weeks Ended
|
||||||
October 29, 2016
|
|
October 31, 2015
|
|||||
|
(in thousands)
|
||||||
Provided by operating activities
|
$
|
59,864
|
|
|
$
|
55,633
|
|
Used in investing activities
|
(91,054
|
)
|
|
(85,048
|
)
|
||
Used in financing activities
|
(54,487
|
)
|
|
(225,033
|
)
|
||
Decrease in cash and cash equivalents
|
(85,048
|
)
|
|
(254,944
|
)
|
||
Cash and cash equivalents at end of period
|
$
|
101,855
|
|
|
$
|
91,215
|
|
ITEM 1A.
|
RISK FACTORS.
|
Month
|
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares that May Yet be Purchased under the Plans or Programs
(2)
|
||||||
|
|
(in thousands, except per share amounts)
|
||||||||||||
July 31, 2016 - August 27, 2016
|
|
1
|
|
|
$
|
15.28
|
|
|
—
|
|
|
$
|
20,000
|
|
August 28, 2016 - October 1, 2016
|
|
1
|
|
|
$
|
11.92
|
|
|
—
|
|
|
$
|
20,000
|
|
October 2, 2016 - October 29, 2016
|
|
6
|
|
|
$
|
12.15
|
|
|
—
|
|
|
$
|
20,000
|
|
Total
|
|
8
|
|
|
|
|
—
|
|
|
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES.
|
Date:
|
December 7, 2016
|
EXPRESS, INC.
|
|
|
|
|
|
|
|
By:
|
/s/ Periclis Pericleous
|
|
|
|
Periclis Pericleous
|
|
|
|
Senior Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)
|
1 Year Express Chart |
1 Month Express Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions