Results impress Wall Street, sending shares up

Columbus-based fashion retailer Express posted encouraging third- quarter results that matched or surpassed Wall Street expectations, sending shares up.

“Our key initiatives continue to gain traction and contribute incrementally, which is driving improved trends in our results,” said David Kornberg, president and CEO, in a conference call with analysts.

Sales fell to $ 498.7 million from $ 506.1 million in the year- ago quarter, but sales were $ 9.9 million better than what Wall Street expected.

Comparable- store sales, a key indicator of a retailer’s health, decreased 1 percent, also slightly better than Wall Street predictions. Executives said that, based on early results from Black Friday weekend, they expect comparable- store sales will be on the plus side in the fourth quarter.

“Ultimately, it’s about product,” Kornberg said. “The right, key items can drive ( sales) volume. It’s about having the right fashion item and right fashion storytelling.”

Income fell to $ 6.3 million, or 8 cents per share, from $ 11.6 million, or 15 cents a share, a year ago. The decline was in line with analyst expectations.

E-commerce sales increased 23 percent from the same quarter last year to $ 118.2 million.

“We are seeing success from our recently expanded omnichannel capabilities and expect enrollment growth in our NEXT loyalty program to drive increased customer engagement in the fourth quarter and into 2018,” Kornberg said.

As part of that omnichannel initiative, Express has rolled out an order online and ship- from- store capability in 150 stores.

Looking ahead, Express said it will continue to prune its store fleet, partly by converting select underperforming full- price stores in mid- tier and lower- tier malls to the lower- price Express Outlet format, Kornberg said. The company plans to convert three additional stores in the fourth quarter, bringing the total number of converted stores to 24 for the year.

The company’s shares closed at $ 9.74, up 52 cents per share or 5.6 percent.