Express, Inc. has released its financial results for the third quarter of 2023, during which time it reported that its net sales had increased 5 percent to 454.1 million dollars, compared with 434.1 million dollars in the year prior.
This comes despite a 7 percent drop in net sales at its owned brands Express and UpWest, where comparable retail sales – including both Express stores and e-commerce – fell 4 percent.
Retail stores for the brands took a 16 percent hit in comparable sales, meanwhile e-commerce saw a modest 10 percent rise.
For Bonobos, on the other hand, a brand that Express jointly acquired with WPH Global earlier this year, net sales came to 52.1 million dollars.
The group’s gross margin fell from 27.8 percent to 24.1 percent, at a decrease of around 370 basis points, while its operating loss was 28.7 million dollars, down from last year’s 29.5 million dollars.
Gross margins fall, operating losses marginally drop
Net loss was 36.8 million dollars, or 9.83 dollars per diluted share, while total debt at the end of the quarter was 274.7 million dollars.
Express, Inc. noted that it was continuing a “comprehensive review” of its business model to reduce pre-tax costs and enable a more efficient organisation, as it strives towards the goal of delivering over 200 million dollars in savings by 2025.
With these latest results, the company has updated its full year outlook with consideration for the “currently challenging macroeconomic environment”, including reduced consumer spending and increased price sensitivity.
For the fourth quarter of 2023, Express is now anticipating net sales of around 565 million dollars to 590 million dollars, with an operating margin of negative mid-single digits.
For the full year, it forecasts net sales to be in the range of 1.84 billion to 1.865 billion dollars, with a net interest expense of 20 million dollars and diluted loss per share of 46 to 50 dollars. Capital expenditures are expected to be approximately 25 million dollars.