The company has continued its comeback in the fourth quarter amid a strong holiday season and soaring sales.
Apparel and accessories retailer Express has reported net income of $7.6M, or $0.11 a share, for the quarter ended 30 January, compared to a loss of $53.3M, or $0.82 a share, in the year-ago period. Analysts had expected a loss of $0.03.
Net sales soared 38.2 per cent to $594.9M, beating estimates of $592M. Same-store sales rose 43 per cent from a year earlier and rose four per cent from the same period in 2019. Total spend per existing customer increased by 13 per cent in the quarter; with new customer spend growing 19 per cent versus 2019.
For the full year, consolidated net sales increased 55 per cent to $1.87bn. Comparable retail sales, which includes both Express stores and e-commerce, increased 41 per cent compared to 2020. Comparable outlet sales increased 27 per cent versus 2020. Net loss was $14.4M, or a loss of $0.22 per share. Total spend per existing customer increased by 13 per cent in Q4, with new customer spend growing 19 per cent 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.”
