Express, Inc. (NYSE: EXPR) announced its financial results for the fourth quarter. Based on the results, the company provided guidance for 2017. Shares of the company declined to record low after the drop of financial results in the fourth quarter, and the negative outlook for the first quarter of 2017.
According to the statement, net sales for the fourth quarter dropped 11% to $678.8 million from the $765.7 million the same period last year. Net income decreased to $22.8 million, or $0.29 per diluted share, from the $56.1 million, or $0.67 per share the same period last year. Comparable sales also fell 13% in the fourth quarter, compared to the 4% increase in the same period of 2015.
“Despite ongoing pressures in the retail sector, our fourth quarter earnings were in line with previously issued guidance,” David Kornberg, the CEO of Express, said in the release.
“As expected, our store performance continued to be impacted by challenging mall traffic and a promotional retail environment. As our industry adapts to changing consumer preferences, we continue to invest in our omni-channel and marketing capabilities to ensure that we capitalize on this evolution,” he said.
For the first quarter of 2017, the company expected that comparable sales to be in the negative high single digits. Diluted EPS was expected to be between a loss of $0.04 per share and flat per share. In addition, the company hopes to encourage growth by some new initiatives, such as improving “fashion clarity”, new brand campaign, and improving existing categories.