Executive Summary

• Express reported adjusted 3Q16 EPS of $0.11, below the $0.13 consensus estimate and down 64.5% year over year. Revenues totaled $506.1 million, down 7% year over year but above the consensus estimate.
• Men’s was the strongest product category in the quarter, comping ahead of women’s. E-commerce also performed well, delivering 15% growth following a marketing and merchandising method update designed to enhance selection.
• The company expects FY16 comparable sales in the negative high-single digits, compared with 6% growth a year ago. Adjusted EPS is expected to be $0.78–$0.82, down from $1.45 a year ago.