Express 2Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Management Change

“The last topic I want to touch on before turning the call over to David is my decision to retire. Last month we announced that I will retire from my role as Chief Executive Officer on January 30, the last business day of our current fiscal year. ”

Weak performance

“Traffic and transactions reached down during the quarter and our net sales of $481 million were 2% below last year’s second quarter. Comparable sales were down 5%. Our gross margin came at 28.3% declining 280 points driven primarily by buying occupancy de-leverage. ”

Transportation costs will go up as they manage risk around port strike

“we don’t anticipate the same transportation savings in the second half of the year as we shift the deliveries to ensure that product keeps flowing regardless of what happens to the West Coast labor negotiations. While we have diverted shipments to East Coast ports, we have also increased our use of air shipments on a temporary basis.”