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Express, Inc. Stock Price: Quote, Forecast, Splits & News (EXPR)

Perplexity Finance

Company Profile

Express, Inc. Price & Performance (EXPR)

Stock Performance

Updated Apr 22, 2024, 7:51 PM UTC

Express, Inc.

$0.83USD

-$15.34 (-94.87%)

After Hours

-$0.83 (-100%)

Open

$0.50

Market Cap

$3.11M

Year High

$17.84

High

$0.97

P/E Ratio

0.0

Year Low

$0.35

Low

$0.35

Dividend Yield

0.00%

Volume

444.12K

Latest News

I Squared Capital Finalizes $608 Million Deal for National Express School Bus Operations
Apr 25, 2025
I Squared Capital has agreed to acquire National Express School's U.S. assets from Mobico Group for $608 million, encompassing over 14,000 school buses. The deal, expected to close by September 30, aims for a seamless transition, with current CEO Tim Wertner retaining his role and business operations continuing under existing brands.1
American Axle & Manufacturing Schedules Q1 Earnings Call for May 2
Apr 25, 2025
American Axle & Manufacturing will release its first quarter financial results on May 2, followed by a conference call at 10 a.m. ET. The Detroit-based auto supplier, which operates in 16 countries, plans to discuss quarterly performance and outlook. Investors can access the webcast and replay on the company’s website.2
DHL Expands Medical Express Service with Brazil-to-U.S. Lane
Apr 25, 2025
DHL Express has enhanced its next-day Medical Express service by adding a Brazil-to-U.S. route, expediting temperature-controlled shipments for pharmaceutical and clinical research clients. The upgrade includes a specialized customer service center in Brazil and aims to streamline export processes, supporting faster delivery and regulatory compliance for Latin American customers.3

What's Happening

Peers

Earnings

Report Date

Nov 30, 2023

Reported Revenue

454.1M

Miss -21.02%

Avg 1d Change

12.43%

Report Period

Q3 2024

Reported EPS

-9.8

Miss -36.91%

Implied Move 1d

50.24%

Transcript

3m 40s

These statements represent our current judgment. Express assumes no obligation to update any forward looking statements. Whether as a result of new information, future events or otherwise, except as required by law.

3m 53s

In addition, we may refer to certain non GAAP measures. You can locate a reconciliation of any non GAAP measures discussed in our comments to amounts reported under GAAP in our earnings release. Will also be providing financial comparisons to prior periods. And our prepared remarks today refer to comparisons to the corresponding periods in 2022 unless otherwise noted. Please see the explanatory notes in the earnings release for additional details regarding the definition of certain terms. With me today are Stuart Glendinning, Chief Executive Officer and Mark Still, Interim Chief Financial Officer. I will now turn the call over to Stuart. Let me begin by thanking the Board and the entire organization for the opportunity to lead this company. I've been in the consumer products industry for much of my career. Managing and growing global brands as well as serving as the Chief Financial Officer of Multinational Companies. My experience with consumers operations and finance is well suited to the challenges facing Express. After joining the business a little under 3 months ago, my focus has been on the pathway to recovering the company's full profit potential. This includes accelerating our cost reduction initiatives, and launching new ones intended to improve our business performance and liquidity.

5m 14s

Today, I'm going to share with you the results from Q3 and then discuss my early thoughts on the path [indiscernible] Our 3rd quarter sales and diluted loss per share came in below the low end of our outlook ranges. Macroeconomic environment remains challenging in the consumer and competitive landscapes were highly promotional. [indiscernible] Operating margin in the 3rd quarter was a negative 6.3% versus a negative 6.8% the same quarter last year.

5m 43s

This was driven by weakness in our top line, which was largely offset by strong cost savings performance in SG and A. In Brand Express, the top line was down 7 percent driven by weaker results in our retail and outlet stores partially offset by a 10% increase in online sales. The Express brand, unit sales were consistent with our expectations. However, moving through this inventory required more extensive discounting and led to greater gross margin erosion. Keep in mind that our gross margin includes the royalty expense to 370 basis points as we did not have this expense in the same quarter in 2022. While there's more work to be done to improve year over year sales results, there were several positive indicators in the quarter. Our sales performance improved sequentially from Q2 realized $30,000,000 of cost savings, which drove a 4% reduction in SG and A. And we saw a real improvement in women's sales driven by the shift in our merchandising strategy. And while traffic was weaker than expected, our conversion rates were higher than last year. We're now driving improvements in our women's business with a low single digit positive comp anchored by strong e commerce sales.

7m 9s

Our men's comp was down mid double digits consistent with Q2 results as we continue to lap the record 2022 performance, particularly in suits. To offset this decline, we're actively adjusting our assortment and a focus on more casual tops and bottoms. That said, we retain a strong market position with a high share of men's specialty retail. Up West grew sales by 15% versus the same quarter last Yeah. And Bonobos exceeded our expectations for the Q3.

7m 45s

The addition of Bonobos has allowed us to leverage our back office and is creating increased purchase leverage with suppliers. While Express has broad market reach and penetration, Bonobos with annual revenues in excess of $200,000,000 has a tremendous opportunity for increased awareness and household penetration to build on its existing scale. The combination of in store fitting and online fulfillment has created strong customer retention and repeat purchase.

8m 15s

And we expect to continue to grow the top line. Having said that, we need to reinvigorate our Brand Express performance and build a stronger foundation on which to realize the company's full potential. Beginning last year, we faced a number challenges, including declines in our customer file conversion and store traffic, driven by missteps in our merchandise strategy, most notably in women's, where we were out of balance across categories price points and wearing occasions, This misalignment between our assortment architectures and customer demand significantly impacted our historic sales and margins.

8m 55s

We believe strongly there's a path to total company improvement. 4 key focus areas are expected to drive the recovery and are already underway. Customer engagement, operating excellence cost reduction and inventory management. Let me explain a little bit more about each. Now understanding consumer motivation that is providing them with the products they want delivering a great purchase experience are all part of ensuring customer engagement. We expect our merchandise assortment to continue to drive increased customer appeal our marketing efforts will reinforce our product style and quality and our associates will ensure a positive shopping experience both online and in our stores. Across the board, we have opportunities to improve our operating This includes cycle times, in store execution, sourcing and logistics, all parts of our business which allow us to serve customers. Lower our cost base and beat the competition.

9m 58s

As part of this effort, we expect some rationalization of our store count as we close high effort unprofitable stores. On cost reduction, we're making good progress and expect to meet the commitments we made. 2023, we identified and implemented $120,000,000 in annualized expense savings. We realized $30,000,000 in Q3 and will realize a total of $80,000,000 for the full year 2023. The remaining $40,000,000 will be realized in the first half of 2024. We are committed to over $200,000,000 in savings by 2025 which is inclusive of the $120,000,000 in annualized savings [indiscernible] It also includes $50,000,000 in gross margin expansion of the it is by leveraging efficiencies in sourcing, production and the supply chain.

10m 57s

This is a great start and I believe we can do even more. Lastly, we're driving changes to ensure lower inventories and higher turn This will not only reduce our borrowings, it will also enhance our operating effectiveness as store backrooms and warehouses are not hampered by excess product. We expect a meaningful reduction in inventory during 2024. Now these areas are just the beginning of our efforts to return Express to profitability. In the longer term, we expect to advance our partnership with WHP Global. And the opportunity here is twofold. First, earlier this month, WHP announced the signing of long term license bring Express brand to Indonesia and Paraguay grow our presence in Mexico and expand our retail footprint in Central America with the opening of 4 new express retail flagship stores through 2026 Royalties from these ventures as well as non core domestic licensing will now flow into the partnership and Express will receive its 40% share net of costs. The second component of the strategic partnership is pursuing acquisitions.

12m 7s

Our first acquisition was Bonobos, which we completed in the Q2.

12m 12s

And since then, Bonobos' sales have exceeded our outlook and they're on track to deliver positive free cash flow for the full year.

12m 20s

We expect to leverage this agreement for further acquisitions in the years to come. Now, let me introduce Mark Still, Mark has been with the company for nearly 20 years and has just assumed the Interim CFO role. He will provide further detail on our Q3 results and outlook for the Q4 and the full year. Mark?

12m 39s

Thank you, Stuart, and good morning. I'll begin with our 3rd quarter results.

12m 45s

We expected consolidated net sales of $460,000,000 to $490,000,000 with approximately $50,000,000 of sales from Bonobos Consolidated net sales actualized at $454,000,000 including $52,000,000 from Bonobos. In the Express and Up West brands combined, comparable sales declined 6%, which was a significant improvement over the 4 [indiscernible] driven by improvements in our women's business and strong conversion increases. Retail stores declined 16%, and outlet stores were down 13%.

13m 30s

Traffic declines and lapping record men's business contributed to the ongoing challenges in these channels. We expect the gross margin to decrease approximately 200 basis points We saw a decrease of 3 70 basis points as we increased promotions and had greater margin erosion than we originally anticipated. We expected approximately 2 75 basis points of leverage in our SG and A expenses.

13m 58s

And we actualized that leverage of 300 basis points The leverage was driven by our cost savings initiatives which delivered $30,000,000 of savings in the 3rd quarter. We expected a diluted loss per share of $5.50 to $7.50 Diluted loss per share was $9.83 At quarter close, we had $35,000,000 of cash and cash equivalents on hand. Total borrowings were $278,000,000 of which $213,000,000 was drawn against our asset based credit [indiscernible] and the remaining $65,000,000 was drawn on our term loan. $22,000,000 remains available under the asset based Inventory increased by 14% versus last year consistent with our expectations and driven by the Bonobos acquisition.

14m 59s

Regarding the $52,000,000 CARES Act receivable we have mentioned previously, We are now pursuing this refund in 2 different pieces as a means to accelerate the payment.

15m 11s

The first piece is for $43,000,000 which is agreed upon and the second piece is for $9,000,000 which is still under review.

15m 20s

We expect to receive $48,000,000 which is comprised of the $43,000,000 in cash related to the CARES Act receivable and a $5,000,000 reduction in our income taxes payable for 2022. It should be noted that we will continue to pursue the remainder of our claim with [indiscernible] For amounts to be paid, the path forward includes approval by the IRS and the Congressional Joint Committee on Taxation.

15m 50s

We are actively engaged with the IRS to move this claim forward given the importance of this receivable to our liquidity.

15m 57s

Before turning to our outlook for 2023, I want to briefly comment on our early Q4 performance.

16m 4s

Our October trends continued into the first half of November while in the back half of November, sales improved and were more in line with last year.

16m 14s

With that in mind, as we turn to our outlook for 2023, our 4th quarter and full year outlooks have been updated and taken into consideration the continued uncertain consumer and macroeconomic environment balanced against our quarter to date performance the impact of the $80,000,000 in expense reductions that we will realize as well as the expected performance of Bonobos. As a reminder, the full year of 2020 3 will include a 53rd week with the Q4 of 2023 consisting of 14 weeks. 53rd week is estimated to add approximately $25,000,000 of net sales in the 4th quarter.

16m 56s

Our outlook for Q4 compared to the Q4 of 2022 is as follows: net sales of approximately 565,000,000 to $590,000,000 including the 14th week and approximately $60,000,000 in Bonobos net sales. And operating margin of negative mid single digits.

17m 20s

Our outlook for the full year compared to the full year of 2022 is as follows: net sales of approximately $1,840,000,000 to $1,860,000,000 including the 53rd week and approximately $150,000,000 in Bonobos net sales. Diluted loss per share of $46 to $50 and capital expenditures of approximately $25,000,000 And now let me turn the call back to Stuart. Thanks, Mark, and thanks for attending the call today. Our team here at Express believes in the full potential of our business recognizes the current challenges and is actively engaged in driving the changes that will restore liquidity and move the business back to profitability.

18m 9s

I'll now Your first question comes from the line of Dana Testley from Testley Advisory Group. Please go ahead. Good morning, everyone, and welcome, Stuart and hello, Mark. Stuart, if you've been there now, I just hi. If you've been there now just around 2 months, and you mentioned the men's and the women's business. What do you see to that where are you in the steps to getting the women's business back on track How are you thinking about the men's business? What's the process? And what's the prognosis for the timeline?

19m 1s

And Mark, when you think about the store base, and the online channels of distribution how do you think about the expense structures of each? What does a a Oportun store base look like to you as we go through this holiday season, how do you think of promotions versus full price and where are you on the merchandise margin journey? Thank you.

19m 28s

All right. Well, Dana, thank you. That's a good set of questions there. Let me pick up on the merchandising strategy because this is actually a place where I think we're in we're in pretty good shape. And the reason for that is that we've got a new leader of this space Michael Rangel, who is top notch He's already shifted the merchandise strategy and you saw it kick in, in this quarter. Mean women had a had historically the last couple years had a pretty rough time We saw positive comp in women this quarter. It was terrific. Our knit tops delivered better than 20% growth. Sweaters and woven tops were up.

20m 8s

Bottoms work, were up mean, our worst category in women was tailoring and that came in at a minus 1. So I mean, I think broadly women are in good shape. Men are in a different place. They are a lot weaker and the the primary reason there is that last year was such a strong year in suits.

20m 29s

And it was a tough comp for men to go up against.

20m 32s

But even inside of men, I mean, we looked at sweaters, Michael's team rolled out a new set of sweaters and sweater tops that was a strongly performing category. In the spaces where we've moved more to casual, we're seeing a strong performance and that's what you're going to see coming up in the quarters to come. And Dana, coming from a sticking with the merchandise, as we think about the Q4 and our promotional stance versus full ticket, I would say we [indiscernible] What I would say is that we are continuing to see great adoption of our go forward product and we will continue to focus on that go forward product. But in the midst of holiday coming out of Black Friday and moving into the Christmas period, we do expect to continue to see a very highly promotional environment, but as we move into next year and as we've mentioned the go forward cost savings that we are expecting to see as we move into 20242025, we will expect to see benefit over time.

21m 44s

And then getting to your second part of your yes, second part of your question as it relates to stores versus e com. As we mentioned in the prepared remarks, we had a plus 10 comp from an e commerce standpoint. Saw great growth, great conversion growth, especially within e comm.

22m 2s

And as we also mentioned in the remarks, we're going to continue to look at our store fleet. We will continue to evaluate it. And if we have high effort unprofitable stores, we will look at potentially closing those locations.

22m 17s

Got it. And then just Stuart as you think about the competitive landscape of Express, [indiscernible] obviously, when you were looking at joining the company where you wanted to take the business, how do you envision what Express should look like over the next year or what you think the steps are to reinvigorate and see Express be a growth company? Thank you. Yes. Well, great question. I'm going to reiterate some of the points that I made in the prepared remarks. But first of all, in coming to the company, we actually have really strong brand. Express has been around a long time. It's got a loyal customer base. And I think sort of missteps here as best I could read the story. Was that we've gotten a little bit away from where our consumer was buying. And we were serving out a set of products that were not aligned with the customer set What you've seen more recently are 2 changes. One, us getting back to more of the Express basics things that we've sold over time, and 2, us moving a little bit more to where the consumer is broadly that is say more casual, I think coming out of coming out of COVID, that more casual dress has persisted.

23m 29s

And our or so I think that's part of the journey where I feel very confident because we've got a good strong team there. In the rest of the business, as I looked at the business, I saw a broad set of opportunity and that has only been confirmed in the 1st couple of months here. There's an absolute opportunity here to engage more address branding and through messaging to customers. And in fact, in the way in which we serve them both online and in stores in their purchase experience.

24m 3s

Coming from a deep operations background as well, as I look across the business and consider the the ability for us to shorten cycle times for us to get better at operating the business just in terms of moving product around getting getting our stores in fighting shape. I look across the business, there are a ton of opportunities then and you will see those as we go through the next [indiscernible] We've spoken extensively to cost reduction and I think the team is already doing a great job there. The only thing I'm doing frankly is to try to deepen that and accelerate it. But we will hit the $200,000,000 I'm confident of it And finally, I think if you look at inventory, we're not turning enough in the business That inventory needs to move through more quickly. The benefit of that frankly is we'll have a lower interest bill and and inside of our own operations you'll see less cluttered backrooms and stores, you'll see warehouses that aren't jammed up. And frankly that will leave us in a place where we're just a much healthier business.

25m 10s

Thank you. Your next question comes from the line of Eric Beder from SCC Research. Please go ahead.

25m 23s

Good morning. Good morning, Eric. Hi, I want to talk about the val inventories. If you take out the Novos what was inventory impact on the what was the inventory without bonobos? And when should we start expecting to see the inventory, I guess, with or without, but it will start to come down.

25m 46s

Yes, Eric, I can take the I'll start with the first part of that question. If we exclude Bonobos, our inventory was was flat compared to last year. So Bonobos added roughly $58,000,000 of inventory that obviously was not in our inventory last [indiscernible] When it comes to the second part of your question as it relates to starting to see that come down, We are intensely focused on improving our working capital and improving our inventory position. So it is focus of ours to make a meaningful reduction in our overall inventory levels as we move to the end of this year and through 2024.

26m 22s

Yes. I mean, sure, Eric, you should start to see that in the first half of twenty twenty four.

26m 28s

Okay. Question for you, I guess the second question is WHP and the agreements here. I know you mentioned some international expansion opportunities.

26m 41s

When do you think those will start to impact? I guess the other question is, you had a great acquisition of Bonobos Do you have the financials? You can believe you have financial flexibility to do other acquisitions here, in kind of the same structure. Well, let me just let me start at the most important part first. Our primary focus here is driving the E XDR back to profitability.

27m 7s

That's job 1, job 2 and job 3. The WHP partnership is something that will benefit us both because of the royalty sharing that we spoke of in our prepared remarks That's in no way distracting to us. These are operations that are separate from our operations They will be licensed and overseen by by the WHP Partnership. And we will collect the benefit as being an owner of that. So that is broadly just beneficial to us without extraordinary effort from us. On the second part, as it relates to acquisitions, we're going to take that over time. Bonobos was a a was a great opportunity for us. We're super happy that that brand, which is a powerful brand with a long runway ahead of it. Is part of our organization. But right now, job 1, 2 and 3 is focusing on getting EXPR back to health. What do you look at When you look at the what do you think of the potential longer term [indiscernible] to jet what do you think the longer term opportunities are in terms of margins, in terms of the ability size and other pieces for Express? I know you've only been there 2 months.

28m 25s

So I'm not expecting any change there, but what do you think about that? Eric, I think it's a great question. Frankly, of course, coming when you make a a big change like this, you think carefully about what the possibilities are for the business. I'll just take you back to 2018.

28m 41s

I mean 2018 was a healthy year wasn't extraordinary year for the business. And if I were going to set a benchmark for a place to go back to, that's what I would look look to and you can go back and look at those financials. But you sort of you were living with gross margins around 30% and and a positive net income. I think that to me is the starting point. But [indiscernible] this is a business that has all the right building blocks and I think if you give me the opportunity to sort of get through this next quarter, coming back in at the end of the year, we'll give you a good set of of expectations for 2024 and give you a little bit more detail on we think the glide path looks like to recovering the full potential in the business.

29m 29s

Okay.

29m 30s

Good luck for the rest of the holiday season.

29m 32s

We appreciate that. Thank you, Eric. Thanks, Eric.

29m 41s

Your next question comes from the line of Marni Shapiro from Retail Tracker. Please go ahead. Hey, everybody. Welcome Stuart and Mark. Nice to meet you.

29m 52s

I'd like to just dig in a little bit more to the merchandising changes. It sounds a little bit like we're moving the pendulum back a little bit to where Express was Portofino shirts, key items. If you could just dig into that a little and is Is that visible? I was in the stores all weekend. I'm there all the time. I've seen some changes in the store. Is this what I'm seeing? And how much more to come? And could you also just talk a little bit about what's going on in the outlets? It seems like that customer is definitely the more price sensitive, but other brands have talked about how the outlets have been bright spot because the consumer is more price sensitive.

30m 35s

Yes. Okay. Well, let me take the second half first and then I'm going to give you the benefit of getting a little bit of explanation directly from our Chief Merchandising Officer because I think he's going to give you a little more granularity. But look on outlets, I would say that outlets weren't particularly bright spot for us. They are a bright spot just in terms of of being part of the profitability of our business. So if you look at the margin structure, outlets are a very good part of our business if you looked at this past quarter, for us the winner was e com. And we were up 10% in business in e com. The performance was strong there and and that's where we won women back. So I would say that that's how our Q3 played out. But realistically going forward, each one of the parts of our business plays a role. Outlets will continue to be an important part of the strategy and ecom will get bigger and stronger, I think, certainly there's nothing that's going to slow that down. But every part is going to continue to play a role in the business.

31m 41s

Michael, you want to talk about merge strategy? Yes, sure. Thanks, Stuart. Yes, Maury, I would say that it's all about balance.

31m 50s

Ultimately, getting back into certain icons such as Portofino Gramercy, it's certainly part of the [indiscernible] but that's only part of it. It's staying balanced across wearing occasions. So as Stuart had said in his remarks, it's it's leaning a little bit more casual. But it's still being polished. Within that, we're balancing price points ensuring that we've got a good structure across good, better, best.

32m 15s

Then a good part of it is getting back some of the customers within our icons and franchises things such as Portofino, Gramercy. Denim had a strong quarter and that was reliant upon getting back into skinny. Relaunch in FlexX. So I'd say it's all about a balance within that. It's not to move back to the days of old of [indiscernible] all, but the Portofino has a strong customer. We want to make sure that we satisfy our customers. It's also having a balance relevant seasonal fashion Okay.

32m 44s

That makes a lot of sense. And then could you just talk a little bit about the marketing side know it's a lot of direct marketing, but how are you thinking about this? The Express brand there's a lot of love for the brand for the people who love the brand. What about getting the new customers into the brand?

33m 3s

Yes.

33m 4s

I mean, I think the health of every of every brand ultimately is building renewal.

33m 11s

And you're absolutely right. We have a very loyal set of customers that we we look to retain.

33m 18s

During this past quarter, what was notable was that sequentially we improved our customer file. The customer file had been under some pressure so I was pleased to see that we're headed in the right direction. I think there's a lot more work to be done there. [indiscernible] also you start to see that shift in the merchandising strategy, we're going to be pulling in a set of customers into our stores and online differently than we were in the past. Because of the offering. And finally, it's been a core focus of mine to take a close look at where we're spending marketing and to look at what results that spend is driving. I think the spend the money in marketing, you've got to be certain that you understand what returns that's driving or what kind of customers that's that's bringing to you. So there's work for us to do just in terms of broad brand building.

34m 9s

And I think all those things combined will start to bring that new customer into our store.

34m 14s

Great. Best of luck to the rest of the holiday season.

34m 17s

I appreciate that. Thank you, Marni.

34m 20s

We have no further questions in our queue at this time.

34m 24s

I will now turn the call over to Stuart Glendinkwig, for closing remarks.

34m 30s

Great. Thank you very much. Well, I want to thank all of you for attending our call today. We've got a company and a group of people who are working hard over the holiday season to make it very successful. And we all look forward to sharing our set of holiday results with you. At our next call. Thank you very much.

34m 49s

This concludes today's conference call. Thank you for your participation and you may now disconnect.

Key Insights

Q3 sales and diluted loss per share came in below the low end of outlook ranges, with consolidated net sales at $454M (including $52M from Bonobos); comparable sales for Express and UpWest declined 6%, retail stores declined 16%, and outlet stores were down 13%, but e-commerce sales grew 10%.
Operating margin for Q3 was negative 6.3% (vs. negative 6.8% last year), driven by top-line weakness offset by $30M in SG&A cost savings; gross margin decreased 370 basis points due to increased promotions and royalty expenses.
Cost reduction initiatives are on track: $120M in annualized expense savings identified for 2023 ($80M realized in 2023, remaining $40M in H1 2024), with a commitment to over $200M in savings by 2025, including $50M in gross margin expansion.
Q4 2023 outlook: net sales of $565M–$590M (including a 14th week and ~$60M from Bonobos), operating margin expected to be negative mid-single digits; full-year 2023 outlook: net sales of $1.84B–$1.86B (including ~$150M from Bonobos), diluted loss per share of $46–$50, and capex of ~$25M.
Merchandising strategy is shifting back to core Express items and more casual offerings, with positive comps in women’s (notably +20% in knit tops); inventory (excluding Bonobos) was flat YoY, with meaningful reductions expected in 2024; focus remains on customer engagement, operating excellence, cost reduction, and inventory management to return to profitability.

Recent Transcripts

Q3 sales and margins missed guidance, but cost savings, e-commerce, and women's business showed improvement.

Q2 results met outlook; cost savings and product improvements drive optimism for H2.

$80M (2023), $120M (2024), $200M (2025 goal)

EXPR completes Bonobos acquisition, launches new strategy amid Q1 sales decline and cost cuts.

Express initiates transformation with WHP Global partnership and $260M capital infusion.

Strategic Partnership

WHP Global, $260M

Income Statement

Revenue

	2019	2020	2021	2022	2023
Revenue	$2.1B	$2B	$1.2B	$1.9B	$1.9B
Cost of Revenue	$1.5B	$1.5B	$1.2B	$1.3B	$1.3B
Gross Profit	$615M	$551M	-$4.9M	$558M	$529M
Gross Profit %	29%	27%	-0.41%	30%	28%
R&D Expenses	$0	$0	$0	$0	$0

2019

2020

2021

2022

2023

Revenue

$2.1B

$2B

$1.2B

$1.9B

Cost of Revenue

$1.5B

$1.2B

$1.3B

Gross Profit

$615M

$551M

-$4.9M

$558M

$529M

Gross Profit %

29%

27%

-0.41%

30%

28%

R&D Expenses

Cash Flow

Net Income

	2019	2020	2021	2022	2023
Net Income	$9.6M	-$164M	-$405M	-$14M	$294M
Dep. & Amort.	$86M	$85M	$74M	$68M	$62M
Def. Tax	$536K	-$50M	$55M	$0	$11M
Stock Comp.	$13M	$8.2M	$9.5M	$9.8M	$7.5M
Chg. in WC	-$33M	$10M	-$94M	$27M	-$128M

2019

2020

2021

2022

2023

Net Income

$9.6M

-$164M

-$405M

-$14M

$294M

Dep. & Amort.

$86M

$85M

$74M

$68M

$62M

Def. Tax

$536K

-$50M

$55M

$11M

Stock Comp.

$13M

$8.2M

$9.5M

$9.8M

$7.5M

Chg. in WC

-$33M

$10M

-$94M

$27M

-$128M

Balance Sheet

Cash

	2019	2020	2021	2022	2023
Cash	$172M	$207M	$56M	$41M	$66M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$172M	$207M	$56M	$41M	$66M
Receivables	$17M	$11M	$126M	$65M	$14M
Inventory	$268M	$220M	$264M	$359M	$366M

2019

2020

2021

2022

2023

Cash

$172M

$207M

$56M

$41M

$66M

ST Investments

Cash & ST Inv.

$172M

$207M

$56M

$41M

$66M

Receivables

$17M

$11M

$126M

$65M

$14M

Inventory

$268M

$220M

$264M

$359M

$366M

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Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

Nov 30, 2023

Reported Revenue

454.1M

Miss -21.02%

Avg 1d Change

12.43%

Report Period

Q3 2024

Reported EPS

-9.8

Miss -36.91%

Implied Move 1d

50.24%

Transcript

3m 40s

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12m 7s

Our first acquisition was Bonobos, which we completed in the Q2.

12m 12s

And since then, Bonobos' sales have exceeded our outlook and they're on track to deliver positive free cash flow for the full year.

12m 20s

12m 39s

Thank you, Stuart, and good morning. I'll begin with our 3rd quarter results.

12m 45s

13m 30s

13m 58s

14m 59s

Regarding the $52,000,000 CARES Act receivable we have mentioned previously, We are now pursuing this refund in 2 different pieces as a means to accelerate the payment.

15m 11s

The first piece is for $43,000,000 which is agreed upon and the second piece is for $9,000,000 which is still under review.

15m 20s

15m 50s

We are actively engaged with the IRS to move this claim forward given the importance of this receivable to our liquidity.

15m 57s

Before turning to our outlook for 2023, I want to briefly comment on our early Q4 performance.

16m 4s

Our October trends continued into the first half of November while in the back half of November, sales improved and were more in line with last year.

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20m 29s

And it was a tough comp for men to go up against.

20m 32s

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22m 2s

22m 17s

23m 29s

24m 3s

25m 10s

Thank you. Your next question comes from the line of Eric Beder from SCC Research. Please go ahead.

25m 23s

25m 46s

26m 22s

Yes. I mean, sure, Eric, you should start to see that in the first half of twenty twenty four.

26m 28s

Okay. Question for you, I guess the second question is WHP and the agreements here. I know you mentioned some international expansion opportunities.

26m 41s

27m 7s

28m 25s

28m 41s

29m 29s

Okay.

29m 30s

Good luck for the rest of the holiday season.

29m 32s

We appreciate that. Thank you, Eric. Thanks, Eric.

29m 41s

Your next question comes from the line of Marni Shapiro from Retail Tracker. Please go ahead. Hey, everybody. Welcome Stuart and Mark. Nice to meet you.

29m 52s

30m 35s

31m 41s

Michael, you want to talk about merge strategy? Yes, sure. Thanks, Stuart. Yes, Maury, I would say that it's all about balance.

31m 50s

32m 15s

32m 44s

33m 3s

Yes.

33m 4s

I mean, I think the health of every of every brand ultimately is building renewal.

33m 11s

And you're absolutely right. We have a very loyal set of customers that we we look to retain.

33m 18s

34m 9s

And I think all those things combined will start to bring that new customer into our store.

34m 14s

Great. Best of luck to the rest of the holiday season.

34m 17s

I appreciate that. Thank you, Marni.

34m 20s

We have no further questions in our queue at this time.

34m 24s

I will now turn the call over to Stuart Glendinkwig, for closing remarks.

34m 30s

34m 49s

This concludes today's conference call. Thank you for your participation and you may now disconnect.

Key Insights

Q3 sales and diluted loss per share came in below the low end of outlook ranges, with consolidated net sales at $454M (including $52M from Bonobos); comparable sales for Express and UpWest declined 6%, retail stores declined 16%, and outlet stores were down 13%, but e-commerce sales grew 10%.
Operating margin for Q3 was negative 6.3% (vs. negative 6.8% last year), driven by top-line weakness offset by $30M in SG&A cost savings; gross margin decreased 370 basis points due to increased promotions and royalty expenses.
Cost reduction initiatives are on track: $120M in annualized expense savings identified for 2023 ($80M realized in 2023, remaining $40M in H1 2024), with a commitment to over $200M in savings by 2025, including $50M in gross margin expansion.
Q4 2023 outlook: net sales of $565M–$590M (including a 14th week and ~$60M from Bonobos), operating margin expected to be negative mid-single digits; full-year 2023 outlook: net sales of $1.84B–$1.86B (including ~$150M from Bonobos), diluted loss per share of $46–$50, and capex of ~$25M.
Merchandising strategy is shifting back to core Express items and more casual offerings, with positive comps in women’s (notably +20% in knit tops); inventory (excluding Bonobos) was flat YoY, with meaningful reductions expected in 2024; focus remains on customer engagement, operating excellence, cost reduction, and inventory management to return to profitability.

Express, Inc. Price & Performance (EXPR)

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