Benzinga -
- Express Inc (NYSE: EXPR) reported a third-quarter FY22 sales decline of 8% year-on-year to $434.1 million, missing the consensus of $451.77 million.
- Consolidated comparable sales decreased 8% versus last year. Comparable retail sales, including Express stores and eCommerce, were down 11%. E-commerce demand declined 17%. Comparable outlet store sales remained flat.
- Operating expenses rose 6.8% Y/Y to $150.1 million. The gross margin contracted 540 basis points to 27.8%.
- Operating loss for the quarter was $(29.5) million versus an operating income of $16.3 million a year earlier.
- Inventory at the end of the quarter climbed 10% Y/Y to $422.7 million.
- EBITDA loss was $(14.5) million versus $31.9 million last year.
- EPS loss of $(0.50) missed the Street view of $(0.29).
- The company held $24.6 million in cash and equivalents as of October 29, 2022.
- Outlook: Express sees FY22 comparable sales of flat to up 1% (prior view increase mid-single digits).
- EXPR expects an FY22 EPS loss of $(1.12) - $(1.22) (prior view $(0.16)-$(0.22)) versus the consensus of $(0.17).
- Strategic Partnership: Global brand management firm WHP has agreed to invest $25 million to acquire 5.4 million newly issued shares of EXPR at $4.60 per share, representing an approximate 7.4% pro forma ownership.
- Related: Express Stock Is Surging Today: What's Going On?
- Price Action: EXPR shares are trading higher by 44% at $1.84 on the last check Thursday.