Executive Summary

• Express reported adjusted 1Q16 EPS of $0.25 versus the consensus estimate of $0.27.
• Total revenues were $502.9 million versus consensus of $521.5 million. Comps (including e-commerce) declined by 3% versus guidance for a low-single-digit increase.
• Management provided 2Q16 EPS guidance of $0.15–$0.19, based on a mid-single-digit comp decline, versus consensus of $0.29. FY16 guidance is now for EPS of $1.41–$1.54, down from $1.56–$1.71 previously. That is based on an expected comp decline in the low- to mid-single-digit range and versus previous guidance for a low-single-digit increase in comps. Consensus is for EPS of $1.66. Guidance for both 2Q16 and FY16 reflects the current retail environment.