EmailExpress (EXPR $17.55 -5.53) reported first quarter earnings of $0.47 per share, $0.02 worse than the Capital IQ Consensus of $0.49, while revenues rose 6.1% year/year to $496 million versus the $502.71 million consensus. The company issued downside guidance for the second quarter with EPS of $0.15-0.18 versus the $0.19 consensus. The company lowered guidance for fiscal year 2013 with EPS of $1.79-1.89 from prior guidance of $1.84-1.97 versus the $1.94 consensus. Comparable sales increased 4%, following an 8% increase in comparable sales in the first quarter of 2011. For 2012, the Company currently expects FY comparable sales to increase in the low to mid single digits compared to an increase of 6% in 2011. The effective tax rate is expected to be between 39.9% and 40.1% for 2012.
The Company currently expects Q2 2012 comparable sales to increase low to mid single digits compared to an increase of 6% in the second quarter of 2011. The effective tax rate is expected to be approximately 40% for the second quarter of 2012. "We had a solid start to the year, reporting a double digit increase in earnings per diluted share while making steady progress toward our long-term goals. The first quarter included the roll out of our new loyalty program, Express NEXT, to all stores in the United States and the opening of four new stores in our new design format. In addition, shortly after quarter end, we entered into a multi-country international franchise arrangement, marking our entry into Latin America. Net sales grew by 6%, with comparable sales rising 4%, including a double digit increase in e-commerce sales. As we look ahead, we remain confident in our go-to-market strategy and that our disciplined execution of our four growth pillars will allow for continued success."
