Spring collection helps Express results beat estimations

Specialty apparel and accessories retailer Express' first-quarter results beat estimates, helped by promotions for cheaper spring clothes, and the company forecast current-quarter profit above analysts' expectations.

Express expects a second-quarter profit of 17 cents to 21 cents per share. Analysts on average expect a profit of 14 cents per share, according to Thomson Reuters.

The company that caters to 20- to 30-year-olds battled high levels of inventory last year as a promotional strategy failed to impress customers. Following this, Express lowered its prices and offered promotions such as 30-50 percent discounts on select merchandise.

Net income fell to $32.4 million, or 38 cents per share, in the quarter ended April 28, from $42.1 million, or 47 cents per share, a year earlier.

Revenue rose 3 percent to $508.5 million. Comparable sales, however, were flat.

Analysts expected earnings of 36 cents per share on revenue of $498.2 million.

"While we promoted more heavily in the face of a highly promotional environment, we managed our expenses tightly," Chief Executive Michael Weiss said.

Expenses fell 1.4 percent to $112.6 million in the quarter.

Women's apparel retailer Ann Inc cut its first-quarter sales forecast earlier this month as it discounted more to sell spring merchandise during a prolonged winter season.

Shares of Express closed at $18.79 on the New York Stock Exchange on Wednesday.