- Express Inc (NYSE: EXPR) reported fourth-quarter FY21 sales growth of 38.2% year-on-year, to $595 million, beating the consensus of $591.95 million.
- Consolidated comparable sales increased 43% versus last year and grew 4% compared to Q4 FY19.
- Comparable retail sales, including Express stores and eCommerce, rose 45%, and comparable outlet store sales increased 39%.
- E-commerce demand grew 33% Y/Y and 21% against Q4 FY19.
- Operating expenses rose 21.7% Y/Y to $163.2 million.
- The gross margin expanded by 1,260 basis points Y/Y to 29.2% and extended 220 basis points compared to Q4 FY19.
- The operating margin was 1.7%, and operating income for the quarter was $10.3 million against $(62.7) million in Q4 FY20.
- EBITDA was $25.8 million versus $(45) million last year.
- EPS of $0.11 beat the analyst consensus of $(0.02).
- Inventory at the end of 2021 climbed 36% Y/Y to $358.8 million.
- The company held $41.2 million in cash and equivalents as of January 29, 2022. Cash provided by operating activities for the twelve months totaled $89.4 million, with a free cash flow of $54.6 million.
- "We are on track to achieve our goal of $1.0 billion in eCommerce demand, and expect to generate a mid-single-digit operating margin and over $100 million in operating profit, by 2024," said CEO Tim Baxter (NYSE:BAX).
- Outlook: Express sees comparable sales growth of 25% – 30% in Q1 and 7% - 9% in FY22.
- The company expects the gross margin rate to increase by 550 basis points in Q1 and 100 basis points in FY22.
- Price Action: EXPR shares are trading higher by 10.5% at $4.54 in premarket on the last check Wednesday.
Read at Benzinga