Express (EXPR) Misses Q3 EPS by 66c, Revenues Miss
Tweet
Share
E-mail
Get Alerts EXPR Hot Sheet
Join SI Premium – FREE
Express (NYSE: EXPR) reported Q3 EPS of ($1.17), $0.66 worse than the analyst estimate of ($0.51). Revenue for the quarter came in at $322.1 million versus the consensus estimate of $376.37 million.
- Third quarter comparable sales of negative 30%, largely resulting from continued steep declines in wear-to-work and occasion-based categories
- Third quarter diluted loss per share of $1.39; adjusted diluted loss per share of $1.17
- Ended quarter with $107 million in cash
- Completed additional 10% corporate workforce reduction, which will reduce expense in 2021 by approximately $13 million
- Digital strategy gains momentum; sequential quarterly demand and transaction improvement throughout 2020; third quarter transactions up 17% and conversion up 10% over prior year
Express storefront at Easton Town Center in Columbus, Ohio. (Photo: Business Wire)
“In the third quarter, we continued to advance the EXPRESSway Forward strategy while taking decisive and appropriate action to manage our liquidity. Our eCommerce business continues to gain momentum and the new fashion product that fully reflects the Express Edit viewpoint is outpacing the balance of our assortment,” said Tim Baxter, Chief Executive Officer. “We have effectively managed that which was within our control, and as I look ahead, I am optimistic about our ability to deliver improved results and cautious about the continued uncertainty brought about by the current environment. Our strategy is the right one, the changes to our product presentation and brand positioning are the right ones, and our financial actions are the right ones. As we move into 2021, we remain focused on delivering our long-term goal of a mid-single digit operating margin and profitable growth.”
Subsequent to quarter end, the Company also completed a ten percent workforce reduction at its Columbus, Ohio corporate office to calibrate the organization to its improved operating model. These reductions are expected to result in $13 million in benefits in 2021, and are in addition to the $95 million cash tax benefit the Company expects to receive in the second quarter of 2021 as part of the CARES Act.
“Our streamlined go to market process and the implementation of our new inventory planning and management systems have already improved our efficiency and enabled us to operate with greater speed and agility,” said Tim Baxter, Chief Executive Officer. “Further reducing our workforce was a difficult decision, but was appropriate to calibrate the organization to the capabilities of this new operating model.”
Fourth Quarter 2020 Guidance
Due to the uncertainty of the current environment, the Company will not provide guidance for the fourth quarter, with the exception of capital expenditures, which are expected to be in the range of $20 million to $23 million for the full year 2020.
For earnings history and earnings-related data on Express (EXPR) click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Optimum Communications gets NYSE non-compliance notice over stock price
- Reading (RDI) Tops Q2 EPS by 4c
Create E-mail Alert Related Categories
Corporate News, Earnings, Management CommentsRelated Entities
Layoffs, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
