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Express turns lower premarket despite posting market beating third quarter sales

Same-store sales fell 1%, again better than market expectations for a decline of 2.2%
Express turns lower premarket despite posting market beating third quarter sales
The market is looking for fourth quarter EPS of 41 US cents and same-store sales growth of 2.2% from the clothing group

Express Inc. (NYSE:EXPR) saw its shares shed earlier gains in premarket trade despite posting a better-than-expected sales in the third quarter.

In a statement, the apparel retailer said net income during the quarter stood at US$6.3mln or 8 US cents a share, lower from the US$11.6mln or 15 US cents a share, recorded a year earlier.

READ: Express shares rise on better than expect second quarter results

In the same period, sales fell 1% to US$498.7mln from US$506.1mln a year earlier, which was still higher than the US$488mln or 8 US cents pencilled in by Wall Street.

Same-store sales fell 1%, again better than market expectations for a decline of 2.2%.

Express Inc blamed the hurricanes, saying they erased 2 US cents off EPS, and hit sales by 1%.

"We enter the important holiday season with positive momentum and are confident that our assortment and fashion are resonating well with our customers based on the continued strength in our e-commerce business and improving store performance," Chief Executive David Kornberg said in a statement.

The company is guiding fourth-quarter same-store sales to be up in the low single digits, and for EPS to range from 40 US cents to 44 US cents.

The market is looking for fourth quarter EPS of 41 US cents and same-store sales growth of 2.2%.

In premarket, its shares shed 4.56% at US$8.80.

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