Express Inc Q2 FY'13 revenues up 3%

First Quarter 2013 Operating Results:

- Net sales increased 3% to $508.5 million from $496.0 million in the first quarter of 2012.

- Comparable sales were flat following a 4% comparable sales increase in last year's first quarter.  This includes e-commerce sales, which increased 48% to $70.7 million.  In last year's first quarter, e-commerce sales grew 28% to $47.9 million.

- Gross margin declined to 33.6% of net sales compared to 38.1% in the first quarter of 2012.  Merchandise margin declined 240 basis points driven by increased promotional activity.  Buying and occupancy expenses as a percentage of sales increased 210 basis points, in-line with expectations.

- Disciplined expense management led to lower selling, general, and administrative (SG&A) expenses of $112.6 million versus $114.2 million in last year's first quarter. As a percent of sales, SG&A expenses improved 90 basis points to 22.1% of net sales compared to 23.0% in the same period last year.

- Operating income was $58.7 million, or 11.5% of net sales, compared to $74.6 million, or 15.0% of net sales, in the first quarter of 2012.

- The effective tax rate declined to 39.6% compared to 39.9% in last year's first quarter.

- Net income was $32.4 million, or $0.38 per diluted share, compared to net income of $42.1 million, or $0.47 per diluted share, in the first quarter of 2012.

- Capital expenditures totaled $16.9 million, consistent with the first quarter of 2012.

- Real estate activity for the first quarter of 2013 is detailed in Schedule 4.

First Quarter 2013 Balance Sheet:

- Cash and cash equivalents totaled $244.2 million versus $180.4 million at the end of the first quarter of 2012.

- As expected, inventory rose to $226.3 million, an increase of 12.8%, compared to $200.6 million at the end of the first quarter of 2012.  The calendar shift due to last year's 53rd week accounted for approximately 4.0% of the increase.  Inventory per square foot increased 6.0% compared to the comparable period in 2012.

- Long-term debt was relatively unchanged at $198.9 million, with no borrowings outstanding under the Revolving Credit Facility.

Express Inc