Express Provides Business Update as It Navigates the COVID-19 Pandemic
August 04 2020 - 4:05PM
Business Wire
Q2 Total Comparable Sales Estimated to Be
-24% eCommerce Business Continues to Accelerate; Second
Consecutive Month of Positive Demand Over $190 Million in
Cash at the End of Q2 Company Resumes Fresh Flow of Receipts
in August Following $100 Million in Q2 Cancellations
Fashion apparel retailer Express, Inc. (NYSE: EXPR) today
provided an update on its current business.
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the full release here:
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Express storefront at Easton Town Center
in Columbus, Ohio. (Photo: Business Wire)
The Company saw a significant increase in eCommerce demand and
apparent stabilization in store sales and traffic in July, as it
continues to drive the transformational work of its corporate
strategy - The EXPRESSway Forward. While the industry remains
pressured by pandemic headwinds and their impact on consumer
confidence, the Company is encouraged by these results, and now
estimates second quarter comparable sales to be down 24% and net
sales to be down 48% on a year-over-year basis.
Upon reopening its stores following closures due to the
pandemic, the Company saw consistent acceleration in sales and
traffic through the third week of June, but then a deceleration as
new hot spots emerged in several states. This was further impacted
by prolonged closures in New York and the re-closing of a number of
stores in California. However, store sales and traffic appear to
have stabilized in July, with total comparable sales, including
eCommerce, at approximately negative 20% for the month. These
results were also driven by the second consecutive month of
positive demand for its eCommerce business in July, where demand
has accelerated from negative 35% in early May to positive 25% for
the back half of July. These results were enhanced by new products
in the assortment, the completion of its eCommerce re-platform, and
the implementation of both ship from store and buy online pick up
in store capabilities in over half of its retail locations.
“Our second consecutive month of positive eCommerce demand
coupled with the apparent stabilization in store sales and traffic
indicate that our new product vision and brand positioning are
resonating with customers. I expect our comparable sales trend to
improve as we resume flowing new receipts over the next several
weeks,” said Tim Baxter, Chief Executive Officer. “We are still in
the early stages of a comprehensive strategic transformation, and
are navigating the ongoing impacts of the pandemic by upholding the
foundational elements of The EXPRESSway Forward while also taking
decisive actions to protect the financial health of our Company. My
confidence in our team and our strategy is as strong as ever, and
we are well positioned to emerge from this challenging period with
the resources and ability to achieve our goal of long-term
profitable growth."
Previously Communicated Actions
As announced in earlier press releases, the Company is taking
the following actions to maintain sufficient liquidity throughout
the COVID-19 crisis:
- Accessed $165 million from its credit facility
- Significantly reduced expenses, capital expenditures and
working capital; this included inventory reductions, furloughing
most store associates and a number of corporate associates while
its stores remained closed, suspending merit pay increases, and
freezing hiring with the exception of a few critical positions
- Additional benefits expected from the Coronavirus Aid Relief
and Economic Security Act (CARES Act) including the expanded
operating loss carryback, employer payroll tax credit and deferral
provisions
The Company continues to actively monitor the situation and will
take additional actions where appropriate as conditions
warrant.
The Company is expected to report its second quarter earnings
results on August 26, 2020, followed by a conference call at 8:30
am. A future release will communicate the details of the call.
About Express, Inc.
Express is a modern, versatile, dual gender apparel and
accessories brand that helps people get dressed for every day and
any occasion. Launched in 1980 with the idea that style, quality
and value should all be found in one place, Express has always been
a brand of the now, offering some of the most important and
enduring fashion trends. Express aims to Create Confidence &
Inspire Self-Expression through a design & merchandising view
that brings forward The Best of Now for Real Life Versatility.
The company operates over 500 retail and factory outlet stores
in the United States and Puerto Rico, as well as an online store.
Express, Inc. is traded on the NYSE under the symbol EXPR. For more
information, please visit www.express.com.
Forward-Looking Statements
Certain statements in this press release are “forward-looking
statements” made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include any statement that does not directly relate to
any historical or current fact. Forward-looking statements are
based on our current expectations and assumptions, which may not
prove to be accurate. These statements are not guarantees and are
subject to risks, uncertainties, and changes in circumstances that
are difficult to predict, and significant contingencies, many of
which are beyond the Company's control. Important factors that
could cause actual results to differ materially from these
forward-looking statements are detailed in the Company’s Annual
Report on Form 10-K for the fiscal year ended February 1, 2020 and
in our subsequent SEC filings. We undertake no obligation to
publicly update or revise any forward-looking statement as a result
of new information, future events, or otherwise, except as required
by law.
Non-GAAP Measure
This press release includes information on eCommerce demand,
which is a non-GAAP financial measure. eCommerce demand is defined
as gross orders for Express and/or 3rd party merchandise that
originate through the eCommerce platform, including the website,
app, and buy-online-pickup in store.
We believe that this non-GAAP measure provides additional useful
information to assist stockholders in understanding our financial
results and assessing our prospects for future performance. Since
this non-GAAP financial measure is not standardized, it may not be
possible to compare this financial measure with other companies'
non-GAAP financial measures having the same or similar name. This
non-GAAP financial measure reflects an additional way of viewing
our operations that, when viewed with our GAAP results, provide a
more complete understanding of our business. We strongly encourage
investors and stockholders to review our financial statements and
publicly-filed reports in their entirety and not to rely on any
single financial measure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200804005976/en/
Investor Contact: Dan Aldridge daldridge@express.com (614)
474-4890
Media Contact: Alysa Spittle aspittle@express.com (614)
474-4745
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