Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Express, Inc. (EXPR)’s Stock Has Slid on Wednesday?

Express, Inc. (NYSE:EXPR)’s stock has dropped by more than 10% on Wednesday after it missed analysts’ estimates in its financial results for the fiscal first quarter. The apparel and accessories retailer reported EPS of $0.25, less than the estimates of $0.27. Revenue in the quarter came in at $502.9 million, worse than the estimated $522.73 million. Comparable sales declined by 3% in the quarter, whereas eCommerce sales slipped by 1%. For full fiscal 2016, the company expects its EPS in between $1.41 and $1.54, versus the consensus of $1.66. In a statement, Express, Inc. (NYSE:EXPR)’s CEO David Kornberg said that merchandise margin jumped 20% in the quarter due to the “disciplined approach” to inventories and smart use of promotions. Mr. Kornberg added that the full year guidance by the company reflects challenges in the retail sector. He said that the company is focused on key initiatives like delivering great fashion, acquisitions of new customers, inventory and implementation.

Follow Express Inc. (NYSE:EXPR)
Trade (NYSE:EXPR) Now!

At the moment there are a multitude of indicators stock market investors employ to assess their holdings. Some of the most useful indicators are hedge fund and insider trading interest. We have shown that, historically, those who follow the top picks of the best fund managers can outpace the S&P 500 by a superb amount (see the details here).

Keeping this in mind, we’re going to view the key action regarding Express, Inc. (NYSE:EXPR).

How are hedge funds trading Express, Inc. (NYSE:EXPR)?

At the end of the first quarter, a total of 34 of the hedge funds tracked by Insider Monkey were long this stock, up by 36% from the fourth quarter of 2015. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Israel Englander’s Millennium Management has the largest position in Express, Inc. (NYSE:EXPR), worth close to $33.4 million, comprising 0.1% of its total 13F portfolio. The second most bullish fund manager is Buckingham Capital Management, managed by David Keidan, which holds a $24.6 million position; the fund has 2.8% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism comprise Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, John Overdeck and David Siegel’s Two Sigma Advisors and Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital.

Since Express has gained popularity during the first quarter, there are some funds that initiated stakes during the first quarter. On the next page, we are going to take a closer look at the funds that added the stock to their equity portfolios during the first quarter. In addition, at the end of this article we will also compare EXPR to other stocks, including Diplomat Pharmacy Inc (NYSE:DPLO), RBC Bearings Incorporated (NASDAQ:ROLL), and Cogent Communications Group, Inc. (NASDAQ:CCOI) to get a better sense of its popularity.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.