WHOA!!! That's outrageous! You need to send their corporate office a letter of complaint.
I don't know Express, do little mall shopping, not sure we even have one down here. But if I run across one, I am boycotting them until I hear how this is ultimately handled. You might also contact HRC, to alert them to this.http://www.hrc.org//
Perhaps just a loose-cannon employee, but maybe also reflecting corporate attitudes. Had it been me, I might have challenged her calling me a homosexual. Not that I'm not out & proud, but I love to turn the tables on people like that, and make them sweat.
"What makes you think I'm a homo? I could sue you and this store for slander, you know. What's the name of your store manager? Oh, you're the manager today? Then the name of your district manager, please. Fine, if you don't want to tell me, my attorney will find it out and contact them. Good bye."
My goal wouldn't be to shop there, of course, but to make her tremble. And believe me, I could make someone like her melt in her shoes, without raising my voice and smiling the whole time.
And you follow through on this, OK?