Express, Inc., a specialty retail apparel chain operating 620 stores, announced its first quarter 2013 financial results for the thirteen week period ended May 4, 2013, compared to the thirteen week period ended April 28, 2012.
First Quarter 2013 Operating Results:
- Net sales increased 3% to $508.5 million from $496.0 million in the first quarter of 2012.
- Comparable sales were flat following a 4% comparable sales increase in last year's first quarter. This includes e-commerce sales, which increased 48% to $70.7 million. In last year's first quarter, e-commerce sales grew 28% to $47.9 million.
- Gross margin declined to 33.6% of net sales compared to 38.1% in the first quarter of 2012. Merchandise margin declined 240 basis points driven by increased promotional activity. Buying and occupancy expenses as a percentage of sales increased 210 basis points, in-line with expectations.
- Disciplined expense management led to lower selling, general, and administrative (SG&A) expenses of $112.6 million versus $114.2 million in last year's first quarter. As a percent of sales, SG&A expenses improved 90 basis points to 22.1% of net sales compared to 23.0% in the same period last year.
- Operating income was $58.7 million, or 11.5% of net sales, compared to $74.6 million, or 15.0% of net sales, in the first quarter of 2012.
- The effective tax rate declined to 39.6% compared to 39.9% in last year's first quarter.
- Net income was $32.4 million, or $0.38 per diluted share, compared to net income of $42.1 million, or $0.47 per diluted share, in the first quarter of 2012.
- Capital expenditures totaled $16.9 million, consistent with the first quarter of 2012.
- Real estate activity for the first quarter of 2013 is detailed in Schedule 4.
First Quarter 2013 Balance Sheet:
- Cash and cash equivalents totaled $244.2 million versus $180.4 million at the end of the first quarter of 2012.
- As expected, inventory rose to $226.3 million, an increase of 12.8%, compared to $200.6 million at the end of the first quarter of 2012. The calendar shift due to last year's 53rd week accounted for approximately 4.0% of the increase. Inventory per square foot increased 6.0% compared to the comparable period in 2012.
- Long-term debt was relatively unchanged at $198.9 million, with no borrowings outstanding under the Revolving Credit Facility.
