XpresSpa Group, Inc. (Nasdaq: XSPA) (“XpresSpa” or the “Company”),
a health and wellness company, today provided a business update on
the Company’s preliminary financial results for the quarter and
fiscal year ended December 31, 2019 that demonstrates the Company’s
continued progress in strengthening operations.
ICR Conference
ParticipationXpresSpa will present at the 22nd Annual ICR
Conference today, Tuesday, January 14, 2020 at the Grande Lakes
Hotel and Resort in Orlando, Florida. The presentation will begin
at 4:00 PM Eastern Time and will be webcast live and later
archived.
The webcast and accompanying presentation can be
accessed from Investor Relations section of the Company’s website
at http://xpresspagroup.com.
Preliminary Fourth Quarter 2019 Sales
Results
- December domestic comparable store sales increased 10.2%,
representing the best monthly result since January 2017.
- Domestic comparable store sales increased 7.7%, representing
the third consecutive quarter of positive comparable store sales
growth and best quarterly result of 2019.
Preliminary Full Year 2019 Sales
Results
- Domestic comparable store sales increased 4.2%.
Doug Satzman, XpresSpa’s CEO, stated, “Our
preliminary results for domestic comparable store sales demonstrate
strong progress in our business turnaround and exemplify our
positioning as the health and wellness destination for the modern
traveler. During the fourth quarter, we took full advantage of the
busy holiday season by servicing our clients with exceptional spa
treatments while providing them with a vast array of relevant
in-spa products for purchase, including our expanded Calm retail
collection and new Persona™ vitamin products. In fact, domestic
comparable store sales for December rose a promising 10.2%, our
best month since January 2017.”
XpresSpa recently opened its newest spa, located
in Concourse E of Hartsfield-Jackson Atlanta International Airport
in December.
Mr. Satzman continued, “We are thrilled to have
opened our fourth spa in Hartsfield-Jackson Atlanta International
Airport, where we already have considerable brand awareness and a
loyal guest following. As the nation’s busiest airport by
passengers served, the Atlanta market is strategically important to
XpresSpa and we are therefore excited that we can now delight
guests with our health and wellness services and exclusive luxury
travel products and accessories across spas in Concourses A, C, D,
and E.”
Mr. Satzman added, “Our portfolio optimization
continues as we closed two tertiary spas in JFK International
Airport at the end of December which had a negative contribution to
our operations. We only have one more low sales volume spa targeted
for an out-of-cycle spa closure in spring 2020, which will complete
the systematic pruning of underperforming locations that I
identified when joining the business almost one year ago. We are
also looking to the future and therefore plan to open several spas
in 2020 within successful, existing markets along with new markets,
particularly internationally, where we already operate some of our
most profitable locations.”
As XpresSpa moves forward with new spa opening
opportunities and reinvestments into its existing spa network, it
will also continue evaluating working capital financing options to
invest in growing its domestic and international portfolio for 2020
and beyond. With the support of its senior lender, B3D, LLC, the
Company has completed a $1 million financing that leverages future
credit card receivables from select domestic stores. XpresSpa may
also explore other financing options in the future to support
opportunistic expansion.
Mr. Satzman concluded, “Lastly, we intend to
build on what we have already accomplished by extending our
comparable store sales momentum, improving four-wall margins and
managing G&A through effective cost management at the store and
corporate level. We also intend to forge new strategic partnerships
with brands that share our commitment to health and wellness and
can further monetize our desirable real estate and affluent
customer base.”
Preliminary Results
Our financial statements for the quarter and
fiscal year ended December 31, 2019 are not yet available and our
independent registered public accounting firm, CohnReznick LLP, has
not completed its review of any financial statements for such
period. Our expectations with respect to our unaudited results for
the period discussed above are based upon management estimates.
Such results are preliminary and subject to revision based upon the
completion of our quarter and year-end financial closing process
and are not meant to be comprehensive for this period. Following
the completion of our quarter and year-end financial closing
process and review by our independent registered public accounting
firm, we may report financial results that could differ from these
estimates. While we believe that the above information and
estimates are based on reasonable assumptions, our actual results
may vary, and such variation may be material. Factors that could
cause the preliminary financial data and estimates to differ
include, but are not limited to: (i) additional adjustments in the
calculation of, or application of accounting principles, for the
financial results for the quarter and year ended December 31, 2019;
(ii) discovery of new information that affects accounting estimates
and management’s judgment underlying these estimated results; and
(iii) the completion of the review by our independent registered
public accounting firm of our financial results for the quarter and
year ended December 31, 2019.
About XpresSpa Group, Inc.
XpresSpa Group, Inc. (Nasdaq: XSPA) is a health
and wellness holding company. XpresSpa Group’s core asset,
XpresSpa, is a leading airport retailer of spa services and related
products, with 51 locations in 25 airports globally. XpresSpa
offers services that are tailored specifically to the busy travel
customer. XpresSpa is committed to providing exceptional customer
experiences with its innovative premium spa services, as well as
exclusive luxury travel products and accessories. XpresSpa serves
almost one million customers per year at its locations in the
United States, Netherlands, and the United Arab Emirates. To learn
more about XpresSpa Group, visit: www.XpresSpaGroup.com. To learn
more about XpresSpa, visit www.XpresSpa.com
Forward-Looking Statements
This press release may contain "forward-looking"
statements within the meaning of Section 27A of the Securities Act
of 1933, and Section 21E of the Securities Exchange Act of 1934.
These include statements preceded by, followed by or that otherwise
include the words "believes," "expects," "anticipates,"
"estimates," "projects," "intends," "should," "seeks," "future,"
"continue," or the negative of such terms, or other comparable
terminology. Forward-looking statements relating to expectations
about future results or events are based upon information available
to XpresSpa Group as of today's date and are not guarantees of the
future performance of the company, and actual results may vary
materially from the results and expectations discussed. Additional
information concerning these and other risks is contained in
XpresSpa Group’s most recently filed Annual Report on Form 10-K,
Quarterly Report on Form 10-Q, recent Current Reports on Form 8-K
and other SEC filings. All subsequent written and oral
forward-looking statements concerning XpresSpa Group, or other
matters and attributable to XpresSpa Group or any person acting on
its behalf are expressly qualified in their entirety by the
cautionary statements above. XpresSpa Group does not undertake any
obligation to publicly update any of these forward-looking
statements to reflect events or circumstances that may arise after
the date hereof.
Investor Relations:ICRRaphael
Gross(203) 682-8253
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