Apparel retailer Express sales climb 8% in Q4 FY'13

Net sales increased 4% and included $27.0 million related to the fifty-third week;

Comparable sales, which compares the fifty-three week period ended February 2, 2013 to the fifty-three week period ended February 4, 2012 and is inclusive of e-commerce sales, were flat, following a 6% increase in 2011;

Gross margin was 34.6% of net sales compared to 36.4% in 2011;

SG&A expenses totaled $491.6 million, or 22.9% of net sales. This compares to $483.8 million, or 23.3% of net sales, in 2011, which included $1.0 million of non-core operating costs before tax related to the secondary offerings completed in April 2011 and December 2011;

Operating income was $251.6 million, or 11.7% of net sales, compared to $270.9 million, or 13.1% of net sales, in 2011;

Interest expense totaled $19.6 million compared to $35.8 million in 2011, which included a $9.6 million loss on extinguishment of debt before tax related to the repurchases of $49.2 million of Senior Notes, the amendment of the $200 million Revolving Credit Facility, and the full prepayment of the $125 million Term Loan;

Income tax expense was $92.7 million, at an effective tax rate of 40.0%, compared to $94.9 million, at an effective tax rate of 40.3%, in 2011.

About Express:

Express is a specialty apparel and accessories retailer of women's and men's merchandise, targeting the 20 to 30 year old customer. The Company has over 30 years of experience offering a distinct combination of fashion and quality for multiple lifestyle occasions at an attractive value addressing fashion needs across work, casual, jeanswear, and going-out occasions.

The Company currently operates over 620 retail stores, located primarily in high-traffic shopping malls, lifestyle centers, and street locations across the United States, in Canada, and in Puerto Rico.

Express Inc