Nikada
Express (NYSE:EXPR) shot up in early trading on Wednesday after backing its full-year outlook despite a slight miss with its Q3 revenue tally.
Sales fell 6% in Q2 to $435.3M and comparable retail sales, which includes both Express stores and e-commerce, were down 13%. Retail store comparable sales decreased 21% during the quarter, while e-commerce comparable sales declined 1%. On the positive side, Express said that its namesake brand saw significant, sequential improvement each month driven by a powerful trend change in the women’s and e-commerce businesses. That momentum was said to have continued through Labor Day. Bonobos sales were also noted to have exceeded expectations and was highlighted as positioned to be a growth engine for Express (EXPR). Non-GAAP EPS of -$9.05 was better than the consensus expectation.
Express (EXPR) said it has taken aggressive action to improve the company’s bottom line. As a result of the ongoing comprehensive review of its entire expense structure, Express (EXPR) has identified and implemented $80M in savings in 2023, and $120M in 2024. EXPR also has a commitment to grow the cost savings to $200M by 2025.
The retailer also announced a 1-for-20 reverse stock split and said it bolstered its liquidity position with a new $65M term loan.
“We are transforming EXPR to create shareholder value and are focused on driving long term profitable growth and delivering positive free cash flow in our core Express business, leveraging our omnichannel platform to reduce costs, and accelerating our growth and profitability through our strategic partnership with WHP Global,” stated CEO Tim Baxter.
Shares of Express (EXPR) jumped 9.76% in premarket action on Wednesday to $9.00.