Express swings to Q3 profit as turnaround continues

Express Inc. maintained its momentum as it entered the holiday season.

The women’s and men’s apparel retailer reported that its  net income totaled $13.1 million, or $0.19  a share, for the quarter ended Oct. 30,  compared to a loss of $90.3 million, or $1.39 a share, in the year-ago period. Adjusted earnings came to $0.17, topping analysts’ estimates of $0.02. It was the retailer’s second consecutive quarter of profitable growth against 2019.   

Net sales rose 46.6% to $471.98 million, below estimates. Same-store sales increased 46% versus a year ago and rose 3% over the third-quarter of 2019.

E-commerce sales were up 26% over the year-ago period.  The retailer has set a  goal of $1.0 billion in online revenue by 2024.

The cost of sales increased  2.3% to boost gross margin to 33.2% from 4.3%.

Express has been working to transform its business, with an increased emphasis on digital sales, product extensions and expansions and a relaunch of its loyalty program. It also is opening smaller stores.

“Our results provide tangible evidence that the versatility, quality and value of our product is resonating with consumers," said  Tim Baxter, CEO. "I am confident that we will continue to deliver positive comparable sales and gross margin expansion versus 2019 in the fourth quarter."    

Express ended the quarter with more than 550 retail and outlet stores in the United States and Puerto Rico.

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