EXPR - Express Non-GAAP EPS of -$9.05 beats by $2.01 revenue of $435.3M misses by $5.35M

2023-09-06 06:41:26 ET

• Express press release ( NYSE: EXPR ): Q2 Non-GAAP EPS of -$9.05 beats by $2.01 .
• Revenue of $435.3M (-6% Y/Y) misses by $5.35M .
• Reiterates plans to realize $120 million in annualized savings in 2024 and goal to deliver $200 million in annualized savings by 2025

• The Company expects the following for the third quarter of 2023 compared to the third quarter of 2022:

  • Net sales of approximately $460 million to $490 million, including approximately $50 million in Bonobos net sales
  • Gross margin rate to decrease approximately 200 basis points, including approximately 300 basis points of royalty expense related to the license agreement with WHP Global, and a positive approximately 300 basis point benefit from Bonobos
  • SG&A expenses as a percent of net sales to leverage approximately 275 basis points, including approximately 150 basis point deleverage from Bonobos
  • Net interest expense of $6 million
  • Effective tax rate of essentially zero percent
  • Diluted loss per share of $5.50 to $7.50
  • Consolidated inventory to increase by low-double digits with the addition of Bonobos

• The Company's full year outlook remains unchanged and it expects the following for the full year of 2023 compared to the full year of 2022:

  • Net sales of approximately $1.9 billion to $2.0 billion, including approximately $150 million in Bonobos net sales
  • Net interest expense of $20 million
  • Effective tax rate of essentially zero percent
  • Diluted loss per share of $30.00 to $34.00
  • Capital expenditures of approximately $25 million

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