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Express shares fall to record low after same-store sales disappoint, grim outlook

Berkeley Lovelace Jr.

Shares of retailer Express (EXPR) fell to a record low Wednesday after the company reported a drop in same-store sales for its fourth-quarter. It also provided a grim outlook for its latest quarter.

The stock ended the day more than 10 percent lower at $9.59 per share, and is down 50 percent over the last 12 months, according to FactSet.

On Wednesday, the Columbus, Ohio-based company said its same-store sales in the fourth-quarter, including e-commerce, fell 13 percent, more than the 12 percent consensus estimate provided by Thomson Reuters. That also compares to a 4 percent increase in the fourth quarter of 2015.

The company said it expects a first-quarter loss of as much as 4 cents a share and 2017 comparable sales to range from flat to low single digits. It sees full-year 2017 earnings to range between 65 cents a share and 73 cents a share.

The company said its performance was impacted by slower mall traffic and a promotional retail environment.

"Despite ongoing pressures in the retail sector, our fourth quarter earnings were in line with previously issued guidance," Express CEO David Kornberg said in a statement.

"We enter 2017 with confidence that the actions we have taken and the initiatives underway will translate into stronger performance as we move through the year," he added.

Express also reported fourth-quarter earnings of 29 cents per share on Wednesday, in line with Thomson Reuters estimates. Revenue came in at $679 million, above a Thomson Reuters estimate of $676 million.

Express 2-day chart

(Source:FactSet)

—Reuters contributed to this report.