Express lower post Q3 results

|By:, SA News Editor

Express (NYSE:EXPR) reports comparable-store sales fell 8% in Q3.

E-commerce sales rose 15% to $96.3M.

Gross margin rate decreased 500 bps to 30%.

Merchandise margins declined 340 bps due to increased promotional activity.

SG&A expense rate +20 bps to 27%.

Operating margin rate squeezed 510 bps to 3%.

Inventory -6% to $341.9M.

Store count +5 Q/Q to 653.

Q4 Guidance: Comparable sales: Negative low double digits; Tax rate: ~39%; Interest expense, net: $0.7M; Net income: $20M to $23M; Diluted EPS: $0.26 to $0.30; Shares outstanding: 78.8M; Store count: 656.

FY2016 Guidance: Comparable sales: Negative high single digits; Tax rate: ~37%; Interest expense, net: $13.5M; Net income: $55M to $58M; Adjusted net income: $62M to $65M; Diluted EPS: $0.70 to $0.74; Adjusted EPS: $0.78 to $0.82; Shares outstanding: 79.1M; Capex: $100M to $105M; Store count: 656.

EXPR -13.92% premarket.