Express reports 9 percent rise in annual net sales

Net sales at Express increased 5 percent to 765.6 million dollars from 725.8 million dollars in the fourth quarter of 2014 and for the full year net and comparable sales increased by 9 percent and 6 percent respectively and operating margin rose 250 basis points, resulting in a 70 percent increase in diluted earnings per share and a 79 percent increase in adjusted diluted earnings per share.

“2015 was a transformative and successful year. During the year, we successfully delivered balanced growth attributable to robust comparable sales, margin gains and expense discipline. We expect the positive momentum from last year to continue and, as indicated by our guidance, are optimistic about 2016,” noted David Kornberg, the Company's President and Chief Executive Officer of Express.

Fourth quarter operating results

Comparable sales including e-commerce sales for the quarter increased 4 percent and ecommerce sales rose 8 percent to 156.3 million dollars. Merchandise margin grew by 180 basis points, and gross margin improved 230 basis points, with a gross margin of 34 percent compared to 31.7 percent in last year’s fourth quarter.

Operating income was 92.9 million dollars, or 12.1 percent of net sales, compared to 76.5 million dollars, or 10.5 percent of net sales in the fourth quarter of 2014. Net income was 56.1 million dollars, or 0.67 dollar per diluted share. This compares to 41.8 million dollars, or 0.49 dollar per diluted share, in the fourth quarter of 2014.

2016 first quarter and fiscal guidance

The company expects comparable sales for the first quarter to increase low-single digits, net income to be in the range of 13 dollars to 15 million dollars against 13.1 million dollars in the first quarter of last year and diluted earnings per share to be in the range of o.10 dollar to 0.19 dollars against 0.15 dollar, last year.

For the 52 week period ended January 30, 2016, the company expects comparable sales to increase low single digits and diluted earnings per share to be in the range of 1.47 dollars to 1.62 dollars.