EXPR Stock Soars on Store Closure Announcement

Express plans on closing about 100 stores in an effort to cut costs

Clothing retailer Express, Inc. (NYSE:EXPR) is trading up 9.6% at $4.55, after the firm said it would be shuttering about 100 of its stores in an effort to cut costs. The apparel concern also zeroed in on $80 million in savings over the next three years, with a massive portion of those opportunities stemming from work force restructuring. The announcement is helping the equity brush off a narrowed fourth-quarter forecast, too.

This pop puts EXPR back atop its 320-day moving average, which has acted as support for the security since a post-earning bull gap in early December and a subsequent spike toward a one-year high just atop the $6 region. Since then, EXPR has lost 27%, but is still trading north of its pre-bull gap levels.

Sentiment surrounding Express is lukewarm, with the three analysts in coverage calling the stock a "hold." Plus, the consensus 12-month price target of $5 is just a 10% premium to current levels.

Over in the options pits, things have been quite bearish, too. During the last 10 weeks 1.94 puts have been bought to open for every call on the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 88th percentile of its annual range, suggesting a healthier-than-usual appetite for long puts relative to calls of late.