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Expect Downside Pressure In Retail Following Express' Big Whiff

ANF, PVH, EXPR, AEO, GES, GPS, URBN

Retail stocks are expected to face downside pressure on Wednesday after Express, Inc. (NYSE: EXPR) delivered worst-than-expected results for the second quarter. Express is one of three companies to report quarterly results Wednesday, with the other two reporting after the closing bell.

Aside from the earnings number, the company's outlook for the third quarter is a big disappointment, as the company's expectation for EPS comes in below half of analysts' EPS estimates. The apparel retailer is also projecting high-single- to low-double-digit comparable store sales for the third quarter.

In the last five quarters, Express' EPS failed to meet expectations on four occasions with the exception being the first quarter. Its president and CEO, David Kornberg, expressed his disappointment. One of the main issues that the company encountered was challenging store traffic and lack of clarity in the assortment.

Peers In The Space

Retail peers PVH Corp (NYSE: PVH) and Guess?, Inc. (NYSE: GES) will report Wednesday after market close, and may feel the impact of Express' earnings disappointment. Aside from these two, one more rival to report their numbers to close the earnings season of the apparel segment in the retail sector.

Related Link: Investors Punish Express For Q2 Miss, Big Guidance Cut

Below is a look at the three remaining retail companies left to report.

  • PVH: Analysts expect EPS of $1.29 on $1.94 billion in revenue.
  • Guess?: Analysts expect EPS of $0.07 on $550.53 million.
  • Abercrombie & Fitch Co. (NYSE: ANF): Set to report August 30, with analysts expecting a loss of $0.20 a share on $782.10 million in revenue.

The following retailers have already reported results:

  • Gap Inc (NYSE: GPS): EPS topped by $0.01 a share.
  • Urban Outfitters, Inc. (NASDAQ: URBN): EPS exceeded by $0.10 a share.
  • American Eagle Outfitters (NYSE: AEO): EPS beat by $0.02 a share.
  • Express' EPS missed by $0.04 a share.

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