Boston, MA 03/12/2014 (wallstreetpr) – Express, Inc. (NYSE:EXPR) stock has been dropping in recent trading sessions after reporting fourth quarter and full year results which saw a slump of 25% in profits for the quarter. The drop in the market has also been instigated by poor than expected earnings for its first quarter that look set to miss estimates. The slump in the market has been as a result of investors raising concerns about the negative numbers and the negative expectations from the company management.

Express Financials

Express reported earnings of $47.9 million for its fourth quarter or 57 cents that were down compared to a high of $63.9 million or 75 cents reported for the same quarter in 2012. This was also a decline compared to analyst’s estimates of 59 cents.

Revenues for the quarter came in at $715.9 million a drop of 2.2% compared to that of the same quarter the prior year, also trailing the industry estimate of $721 million. The only positive was the reported improvement in same store sales that were up by 1% with e-commerce revenue coming in at $138.8 million an increase of 14%.

Express gross margin for the quarter were down to 32% from a high of 35% and consequently missing estimates of 32.9%. The underperformance in the market according to the company Chief was mainly as a result of heavier than planned promotions that hurt the company’s revenue as well as margins. One thing worth noting is that the company did not cite the harsh weather conditions that was experienced in the first two months of the year as the reason behind the slump in terms of earnings and sales.

First Quarter Guidance

Express expects to report total net income for the first quarter amounting to between $10 million and $15 million with earnings per share of between $0.12 and $0.18. This is overwhelmingly lower compared to analyst estimates of $0.41. The company expects its comparable sales to range from negative low double to negative high singles.

Express for full year expects to report earnings per share of between $1.03 and $1.23 which will be lower compared to analysts’ estimates of $1.59. The chain retail store also expects to register a decline of low single digits for its same store sales.