Express swings to Q4 profit; expects momentum to continue in 2022
Express continued its comeback in the fourth quarter amid a strong holiday and soaring sales.
The apparel and accessories retailer reported net income of $7.6 million, or $0.11 a share, for the quarter ended Jan.30, compared to a loss of $53.3 million, or $0.82 a share, in the year-ago period. Analysts had expected a loss of $0.03.
Net sales soared 38.2% to $594.9 million, beating estimates of $592 million. Same-store sales rose 43% from a year earlier and rose 4% from the same period in 2019. Total spend per existing customer increased by 13% in the quarter, with new customer spend growing 19% versus 2019.
For the full year, consolidated net sales increased 55% to $1.87 billion. Comparable retail sales, which includes both Express stores and eCommerce, increased 41% compared to 2020. Comparable outlet sales increased 27% versus 2020. Net loss was $14.4 million, or a loss of $0.22 per share. total spend per existing customer increase by 13% in Q4, with new customer spend growing 19% vs. 2019
Express has been working to transform its business, with an increased emphasis on digital sales, reimagined products and expansions and a relaunch of its loyalty program. It also is opening smaller stores. Currently, the company has five Express Edit smaller stores.
“In 2021, we delivered profitable growth in the second, third and fourth quarters, and drove positive operating income and free cash flow for the full year," said Tim Baxter, CEO. “We had a strong holiday season and our momentum has continued. We are well positioned to build upon this success and continue our momentum in 2022.”
Baxter added that Express is on track to achieve its goal of $1.0 billion in e-commerce demand, and expect to generate a mid-single digit operating margin and over $100 million in operating profit by 2024.
[Read More: Express testing non-mall store concept; targets $1 billion in online sales by 2024]
For its current fiscal year, the retailer expects first-quarter same-store sales growth of 25% to 30% and full-year growth of 7% to 9%.
Express operates roughly 561 stores, including 346 Express locations, 203 outlets, five Express Edits and seven UpWest units.