Benzinga - Shares of fashion apparel retailer Express Inc (NYSE: EXPR) are surging Thursday morning after the company reported third-quarter financial results and announced a strategic partnership with WHP Global.
Q3 Earnings: Express reported third-quarter revenue of $434.1 million, which missed average analyst estimates of $451.77 million, according to Benzinga Pro. The company reported a quarterly net loss of 50 cents per share, which missed estimates for a loss of 29 cents per share.
"The third quarter was tougher than we anticipated and that is reflected in our results. The macroeconomic, consumer and competitive environments were extremely challenging, and became more acute as the quarter progressed," said Tim Baxter (NYSE:BAX), CEO of Express.
Express expects comparable sales to be flat to up 1% in full-year 2022. The company anticipates a full-year net loss between $1.12 and $1.22 per share.
Strategic Partnership: Express and WHP Global entered into a strategic partnership to advance an omnichannel platform which is expected to drive accelerated, long-term growth.
The companies will also form an intellectual property joint venture intended to scale the Express brand through new domestic category licensing and international expansion opportunities.
WHP will invest $235 million for its stake in the intellectual property joint venture and Express will contribute intellectual property assets in exchange for cash consideration.
Under the terms of the transaction, WHP will also make a common equity PIPE investment to acquire 5.4 million newly issued shares of Express at $4.60 per share, representing an approximate pro forma ownership of 7.4%. The transaction is expected to close in the fiscal fourth quarter for Express.
EXPR Price Action: Express has a 52-week high of $4.93 and a 52-week low of $1.04.
The stock was up 62.5% at $2.08 at time of publication, according to Benzinga Pro.
Photo: bargainmoose from Flickr.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.