Express Offers Some Value Opportunity

Shortly after the start of the year Express, Inc.  (EXPR) warned the 4th quarter results would come in shy of expectations. For the resurgence we've seen in some retail names over the past few months, this was a bit of a rough blow. With the company set to report in a few weeks, the pullback appears to offer some value opportunity.

Express holds a cash position around $2.52 per share against no debt. For a company that is still profitable and trading around $7.22, the valuation of the business sits at only $4.70. This equates to a roughly $400M valuation for a business with $2B in sales and an e-commerce business growing at double-digits. While profits of $0.31 to $0.35 per share for FY 2017 won't wow people, it isn't awful either. The company is shuddering unprofitable stores and moving inventory to nearby stores or outlets. The shift of focus to higher gross margin avenues like online sales should help in cost-cutting efforts along with boosting the bottom line....93 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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