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Express stock drops on missed fourth-quarter expectations

The departure of the company's CEO hamstrung its fourth-quarter earnings
Clothing rack
The company took a $1.1 million loss last quarter

Express Inc (NYSE:EXPR) posted fiscal fourth-quarter results Wednesday morning that missed expectations on earnings and revenue.

The apparel company reported a loss of $1.1 million, $0.02 per share, easily missing analysts’ average expectations of $0.16 in earnings. That’s down from $27.4 million, $0.35 per share, a year earlier, albeit in a quarter with an additional week. Same-store sales shrunk 6%.

The stock was out of fashion Wednesday morning, down 12.7% to $4.45 before the bell.

However, excluding costs associated with the CEO’s departure and the impairment of the company’s investment in vintage apparel company Homage, adjusted net income would have been $12.8 million, $0.19 per share, the company said in a statement.

The Columbus, Ohio-based company’s search for a new CEO is still ongoing.

Looking forward, the company expects a first quarter loss between $18 million and $23 billion, or a range of $0.27 to $0.34 per share. That’s worse than the average analyst estimate of a $0.04 loss per share.

The company declined to issue full-year guidance amid the active CEO search.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

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