Express posts Q3 loss, comparable sales decline by 8 percent

Consolidated net sales at fashion apparel retailer Express, Inc. decreased 8 percent to 434.1 million dollars in the third quarter of 2021, with consolidated comparable sales down 8 percent.

Comparable retail sales, which includes both Express stores and ecommerce, were down 11 percent compared to last year’s third quarter. Retail stores decreased 6 percent, while ecommerce demand declined 17 percent. Comparable outlet store sales remained flat versus the third quarter of 2021.

"The third quarter was tougher than we anticipated and that is reflected in our results. The macroeconomic, consumer and competitive environments were extremely challenging, and became more acute as the quarter progressed," said Tim Baxter, the company’s CEO in a statement.

Highlights of Q3 results at Express Inc.

The company reported gross margin of 27.8 percent of net sales compared to 33.2 percent in last year's third quarter, a decrease of approximately 540 basis points.

Operating loss was 29.5 million dollars compared to income of 16.3 million dollars, net loss was 34.4 million dollars or 50 cents per diluted share and EBITDA was negative 14.5 million dollars compared to 31.9 million dollars in the third quarter of 2021.

"Despite these results, we remain confident in our ability to achieve our stated goal of long-term, profitable growth in the Express brand. We are in the midst of a large-scale transformation which we expect to be further accelerated by the strategic partnership with WHP Global that we announced today," Baxter added.

The company expects full year comparable sales to be flat to up 1 percent, gross margin rate to decrease approximately 150 basis points and diluted loss per share of 1.12 dollars to 1.22 dollars.