Express, Inc. (NYSE:EXPR) shares have had a nice run over the past three trading sessions, and a 3.17% gain on Friday.
The stock ended at $13.01, with 4.59 million shares changing hands.
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 operates over 600 retail stores across the US, Puerto Rico and Canada.
Express, Inc. (NYSE:EXPR) coasting in Gap’s slipstream?
Gap shares on Friday sparked a rally in apparel and retailer shares. Investors looked beyond Gap’s numbers, which were a beat despite a fire in a distribution facility, and presumed that the worst was over for the company’s outlook. Gap’s 15% gap-open surge ignited investor interest in Express, along with Urban Outfitters and American Eagle Outfitters, which all closed with gains between 1% and 3%.
Express, Inc. (NYSE:EXPR) reported dismal numbers for Q2
In August, Express plunged after the company reported e-commerce sales dropped 7% year on year. Q2 EPS of $0.13 missed by $-0.04 and revenue of $504.77 fell 5.8% year on year and missed by $16.8 million.
“Sales and earnings were below our guidance, reflecting a decline in store traffic,” said David Kornberg – CEO. “We also attribute our performance to a lack of clarity in our assortment caused by too many choices and this was compounded by skewing too young in our projection especially in the latter part of the quarter.”
The poor result led Piper Jaffray to downgrade the retailer from Overweight to Neutral. Similarly, C L King downgraded from Buy to Neutral.
Other analysts kept ratings intact but cut target prices.
Nevertheless…Express, Inc. (NYSE:EXPR) looking bullish technically
The daily chart shows that Express has moved up sharply with a bullish three-white-soldier pattern, and crossed above the August 24 high.
The stock may up and quickly close the gap to at least $13.78.