On track to close deal with WHP Global in
January 2023
Fashion apparel retailer Express, Inc. (NYSE: EXPR), today
provided an update on its full year 2022 outlook. The Company now
expects the following:
- Comparable sales of around flat, consistent with prior
outlook
- Diluted loss per share of $1.18 to $1.22, within the range of
prior outlook, excluding impact of $260 million in proceeds from
WHP partnership expected to close January 2023
The other elements of the full year 2022 outlook provided by the
Company on December 8, 2022, remain unchanged. The updated outlook
above does not reflect the expected benefits of the transaction or
the strategic partnership with WHP Global (“WHP”) announced on
December 8, 2022.
“Against a backdrop of extremely challenging macroeconomic,
consumer and competitive environments, we expect to deliver full
year 2022 comparable sales and diluted loss per share within the
ranges of our prior outlook,” said Tim Baxter, Chief Executive
Officer. “Reduced spending in discretionary categories and an
increased appetite for deep discounts continued into the fourth
quarter which negatively impacted our business. Despite these
headwinds, we remain confident in our ability to achieve our stated
goal of long-term, profitable growth in the Express brand and are
committed to returning to profitability in 2023.”
“We are on track to close our recently announced deal with WHP
in January 2023. This mutually transformative, strategic
partnership will advance our EXPRESSway Forward strategy, scale our
Express brand, provide WHP access to a fully integrated,
omnichannel operating platform, and accelerate the growth of our
Company,” concluded Baxter.
Tim Baxter and Jason Judd, Chief Financial Officer, will
participate in a fireside chat at the 2023 ICR Conference on
Tuesday, January 10, 2023, at 4:00 p.m. Eastern Time. The fireside
chat will be webcast live and available for replay and an investor
presentation will be available at the Company’s Investor Relations
website, www.express.com/investor.
About Express, Inc.
Express is a modern, multichannel apparel and accessories brand
grounded in versatility, guided by its purpose - We Create
Confidence. We Inspire Self-Expression. - and powered by a styling
community. Launched in 1980 with the idea that style, quality and
value should all be found in one place, Express has been a part of
some of the most important and culture-defining fashion trends. The
Express Edit design philosophy ensures that the brand is always ‘of
the now’ so people can get dressed for every day and any occasion
knowing that Express can help them look the way they want to look
and feel the way they want to feel.
The Company operates over 550 retail and outlet stores in the
United States and Puerto Rico, the express.com online store and the
Express mobile app. Express, Inc. is comprised of the brands
Express and UpWest, and is traded on the NYSE under the symbol
EXPR. For more information, please visit www.express.com or
www.upwest.com.
Forward-Looking Statements
Certain statements 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 and include, but are not limited to (1) guidance and
expectations, including statements regarding expected operating
margins, comparable sales, effective tax rates, interest income,
net income, diluted earnings per share, cash tax refunds,
liquidity, EBITDA, free cash flow, eCommerce demand, and capital
expenditures, (2) statements regarding expected store openings,
store closures, store conversions, and gross square footage, and
(3) statements regarding the Company's strategy, plans, and
initiatives, including, but not limited to, results expected from
such strategy, plans, and initiatives. You can identify these
forward-looking statements by the use of words in the future tense
and statements accompanied by words such as “outlook,” “indicator,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,”
“scheduled,” “estimates,” “anticipates,” “opportunity,” “leads” or
the negative version of these words or other comparable words.
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. Many factors could cause actual results to
differ materially and adversely from these forward-looking
statements. Among these factors are (1) changes in consumer
spending and general economic conditions; (2) the COVID-19 pandemic
and its continued impact on our business operations, store traffic,
employee availability, financial condition, liquidity and cash
flow; (3) geopolitical risks, including impacts from the ongoing
conflict between Russia and Ukraine and increased tensions between
China and Taiwan; (4) our ability to operate our business
efficiently, manage capital expenditures and costs, and obtain
financing when required; (5) our ability to identify and respond to
new and changing fashion trends, customer preferences, and other
related factors; (6) fluctuations in our sales, results of
operations, and cash levels on a seasonal basis and due to a
variety of other factors, including our product offerings relative
to customer demand, the mix of merchandise we sell, promotions, and
inventory levels; (7) customer traffic at malls, shopping centers,
and at our stores; (8) competition from other retailers; (9) our
dependence on a strong brand image; (10) our ability to adapt to
changing consumer behavior and develop and maintain a relevant and
reliable omni-channel experience for our customers; (11) the
failure or breach of information systems upon which we rely; (12)
our ability to protect customer data from fraud and theft; (13) our
dependence upon third parties to manufacture all of our
merchandise; (14) changes in the cost of raw materials, labor, and
freight; (15) supply chain or other business disruption, including
as a result of the coronavirus; (16) our dependence upon key
executive management; (17) our ability to execute our growth
strategy, EXPRESSway Forward, including engaging our customers and
acquiring new ones, executing with precision to accelerate sales
and profitability, creating great product and reinvigorating our
brand; (18) our substantial lease obligations; (19) our reliance on
third parties to provide us with certain key services for our
business; (20) impairment charges on long-lived assets; (21) claims
made against us resulting in litigation or changes in laws and
regulations applicable to our business; (22) our inability to
protect our trademarks or other intellectual property rights which
may preclude the use of our trademarks or other intellectual
property around the world; (23) restrictions imposed on us under
the terms of our asset-based loan facility, including restrictions
on the ability to effect share repurchases; (24) changes in tax
requirements, results of tax audits, and other factors that may
cause fluctuations in our effective tax rate; (25) changes in
tariff rates; (26) natural disasters, extreme weather, public
health issues, including pandemics, fire, acts of terrorism or war
and other events that cause business interruption, and (27) risks
related to our partnership with WHP Global. These factors should
not be construed as exhaustive and should be read in conjunction
with the additional information concerning these and other factors
in Express, Inc.'s filings with the Securities and Exchange
Commission. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230109005684/en/
Investor Contact Greg Johnson gjohnson@express.com
614-474-4890
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