The analyst has been positive on Express story for quite some time, stating, "The retailer has done a tremendous job of launching newness into the product line showcasing a clear merchandising message and managing inventory." However, the company has witnessed the same slowdown as most other retailers experienced in April and at the commencement of the second quarter, which pressurized the first-quarter financial numbers and the full-year forecast.
The brokerage pointed out "wind of a slowdown in the sector starting in April and a miss in FYQ1 financial numbers caused the stock to drop nearly 42 percent since the beginning of April."
Duvai stated, "While an uncertain retail environment is pressuring most retailers, there are some retailer's getting unduly punished and being ‘thrown out with the bathwater'. This is making for some compelling investment opportunities; one being Express whose stock price is down some 30 percent in 2.5 months. This isn't to say that EXRP didn't disappoint FYQ1 results and FYQ2 expectations with sales and EPS both missing consensus expectations."
The analyst believes that later this year EXPR would implement an updated operations and IT system; the brokerage thinks these implementations will help better the company's position for product for sale and improve margins.
At time of writing, Express was trading down 1.84 percent at $14.41.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.