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Express Q4 net loss widens, reveals subdued outlook for Q1

By Prachi Singh

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Business

Consolidated net sales at Express Inc., decreased 3 percent to 606.7 million dollars, with consolidated comparable sales down 3 percent, comparable retail sales, which includes both Express stores and e-commerce, decreased 5 percent compared to the fourth quarter of 2018. In total, retail sales decreased to 444.6 million dollars from 479 million dollars in the fourth quarter of 2018. Comparable outlet sales increased 2 percent and total outlet sales increased to 143.8 million dollars. The company said in a statement that net loss for the quarter was 141.6 million dollars or a loss of 2.21 dollars per diluted share, compared to 1.1 million dollars or 2 cent per diluted share, in last year’s fourth quarter, while adjusted net income was 12.2 million dollars or 19 cents per diluted share compared to 12.8 million dollars or 19 cents per diluted share, in the fourth quarter of 2018.

“Our results show the third consecutive quarter of sequential improvement in our comp sales trend, as the actions we have taken in the early stages of our transformation are resonating with customers,” said Tim Baxter, Chief Executive Officer of Express, adding, “While there is certainly volatility surrounding the coronavirus, our lean inventory position gives us the flexibility to invest appropriately in new product in response to business trends in the coming months.”

Express posts full year 2019 sales drop of 5 percent

Express added that consolidated net sales decreased 5 percent to 2,019 million dollars, while comparable retail sales, which includes both Express stores and e-commerce, decreased 6 percent compared to 2018. In total, retail sales decreased to 1,467 million dollars from 1,616 million dollars in 2018. Comparable outlet sales decreased 1 percent versus 2018 and in total, outlet sales increased to 485.6 million dollars from 435.3 million dollars in 2018.

Operating loss for the year was 217.9 million dollars and on an adjusted basis operating loss was 11.2 million dollars in 2019. Net loss was 164.4 million dollars or a loss of 2.49 dollars per diluted share, compared to net income of 9.6 million dollars or 13 cents per diluted share, in 2018, while adjusted net loss was 8.4 million dollars or a loss of 13 cents per diluted share, compared to adjusted net income of 23.6 million dollars or 32 cents per diluted share, in 2018.

The company’s projected results for the thirteen-week period ended May 2, 2020 include comparable sales to be negative mid-single digits, net loss in the range of 11.5 to 14 million dollars and diluted EPS in the range of 18 cents to 22 cents.

Picture credit:Business Wire

Express