Following an initial jump, shares of Express Inc. (EXPR, Financial) fell more than 6% after reporting second-quarter earnings per share of 3 cents on $493.61 million in revenue, reflecting a 2.6% year-over-year increase. The company beat earnings estimates by 4 cents and revenue expectations by $6.42 million.
“Our second quarter performance represents another step forward in our pursuit of returning Express to sustainable and profitable long-term growth," President and CEO David Kornberg said. "Comparable sales grew for the second consecutive quarter, and for the third consecutive quarter we increased earnings relative to the prior year. E-commerce had another exceptional quarter, with sales increasing 37%, on top of 28% growth achieved in the prior year period.”
Comparable sales rose 1%, compared to a 4% decrease in the prior-year quarter. E-commerce sales increased 37% year over year to $123.9 million.
Further, the gross margin improved 60 basis points to 28.4% of net sales, compared to 27.8% a year ago, due to a decrease in buying and occupancy costs as a percentage of net sales, partially offset by a decrease in merchandise margin.
Looking ahead to the third quarter, the company expects comparable sales between -1% and 1% and earnings per share between 8 cents and 11 cents.
Shares of Dycom Industries Inc. (DY, Financial) jumped more than 5% after reporting second-quarter earnings of $1.05 per share on revenue of $799.47 million. The company fell 3 cents short of earnings estimates, but revenue was in-line with expectations.
The company's contract revenues increased 0.8% on an organic basis after excluding $3.8 million from storm restoration services in the current period and $9.1 million from an acquired business that was not owned during the comparable prior-year period.
Non-GAAP adjusted earnings before interest, taxes, depreciation and amortization were $97.8 million, or 12.2% of contract revenues.
For the fourth quarter, the company expects revenue between $785 million and $835 million and diluted earnings per share of 69 cents to 93 cents.
Shares of Chico's FAS Inc. (CHS, Financial) fell about 7% on second-quarter earnings of 13 cents per share on $544.72 million in revenue, a 5.9% year-over-year growth. The company beat earnings estimates by 1 cent and revenue expectations by $4.16 million.
During the quarter, the company repurchased 3.5 million shares for $30.8 million. The gross margin was $196.9 million, or 36.1% of net sales, compared to $209.1 million, or 36.1% of net sales, in the year-ago quarter.
The company reaffirmed its fiscal 2018 outlook.
Disclosure: The author holds no positions in any stocks mentioned.
