By Michael Calia
Express Inc. and Lululemon Athletica Inc. boosted their outlook
Monday as they joined several other retailers in reporting a
better-than-expected holiday-shopping period, although high-end
jeweler Tiffany & Co. said it ended the year on a disappointing
note.
Express said it now expects to post full-year earnings of 74
cents to 77 cents a share, compared with its earlier forecast of 69
cents to 76 cents a share. It revised its sales outlook to a
decline in the mid-single-digit range versus its earlier call of a
mid- to high-single-digit decline.
For the current quarter, Express said it expects per-share
earnings of 43 cents to 46 cents a share, along with a 3% to 4%
decline in same-store sales, up from 38 cents to 45 cents a share
on a mid- to high-single-digit same-store sales decline.
Shares of the company rose 9.1% in recent premarket trading.
The holiday-season results from Express, Tiffany, Lululemon
Athletica Inc. and New York & Co. come after several retailers
last week posted better-than-expected results from the highly
promotional period, during which consumers benefited from lower
gasoline prices and economic improvement.
Express in early December had warned of challenges during the
rest of the holiday season, but things turned around near the end
of the year.
"The first three weeks of December did reflect a
post-Thanksgiving lull, but business then strengthened markedly
through the balance of December and the first week of January,
exceeding our expectations," Chief Executive Michael Weiss said in
a news release.
Yogawear company Lululemon said it is entering the new year in
"very good shape" thanks to improving trends and strong results
during the holidays. The company raised its outlook for the current
period to 71 cents to 73 cents a share in earnings from its
previous forecast of 65 cents to 69 cents a share. Its stock rose
3.9% in recent premarket trading.
Tiffany, however, lowered its full-year earnings guidance after
closing 2014 on a weak note. The company now expects to post
per-share profit of $4.15 to $4.20, down from its previous outlook
of $4.20 to $4.30 a share.
"Clearly, sales for the holiday period were disappointing
overall," Tiffany Chief Executive Michael J. Kowalski said in a
news release. Shares of the company fell 4.4% in recent premarket
trading.
Looking ahead, the jeweler said it expects a stronger U.S.
dollar to continue to weigh on its results in the year beginning
Feb. 1, and that it will likely plan for low-to-mid single-digit
sales and profit growth. Analysts polled by Thomson Reuters were
projecting 14% earnings growth and 7% sales growth.
Specialty-apparel retailer New York & Co. said its sales for
the current quarter should match its earlier view yet still warned
that it was a challenging period marked by margin-squeezing
promotions and soft demand for seasonal wear such as sweaters,
scarves and outerwear. Additionally, the company said it
experienced delivery delays due to issues at West Coast ports.
Write to Michael Calia at michael.calia@wsj.com
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