Why Express Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of specialty apparel retailer Express climbed 10% today after the company's quarterly results and outlook topped Wall Street expectations.
So what: Express' first-quarter profit fell 23% on continued discounting and higher costs, but it was still better than Wall Street had expected, suggesting that things are starting to turn. In fact, the company said that shoppers are responding rather enthusiastically to its spring merchandise, giving investors plenty of good vibes over its near-term prospects.
Now what: Management now sees full-year EPS of $1.48-$1.58, up nicely from its prior view of $1.40-$1.54 per share.
"The direction the business is heading is positive," said Chairman and CEO Michael Weiss. "As we start the second quarter, momentum in the business is on the upswing, and conversion, which we often cite as a leading indicator of the business, has been building since relatively early in the first quarter."
Of course, with the stock now up about 100% from its 52-week lows and sporting a P/E in the mid-teens, I'd wait for some of trading momentum to slow before buying into that bullishness.
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The article Why Express Shares Soared originally appeared on Fool.com.Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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