Express Inc. (NYSE:EXPR) shares fell sharply on Wednesday after the specialty retail apparel company released showing second quarter results lower than analysts were expecting and the firm's CEO offered a candid appraisal.
The company’s net sales decreased 6% to $504.8mln from $535.6mln in the same period in 2015. E-commerce sales dropped 7% to $70.1 mln.
“I am disappointed with our second quarter performance as sales and earnings were below our guidance, reflecting challenging store traffic,” said CEO David Kornberg. “This was compounded by a lack of clarity across the assortment.”
Kornberg said that Express’ leadership team believed they had identified ways to reposition the company for success.
“Our fall assortment is more cohesive across our wearing occasions, clearly identifying the important trends, and we are aggressively pursuing several marketing initiatives focused on driving new customer acquisition and retention,” Kornberg said. The company’s overall inventory position heading into the fall season was also favorable, he noted.
Express shares were down 24.83% to $12.05.