Express swings to Q2 loss as sales fall

US fashion retailer Express swung to a loss in the second quarter as its sales fell 6 percent.

In the three months to July 29, the company made a net loss of 44.1 million dollars, or 11.79 dollars per diluted share, compared to a profit of 7 million dollars, or 2.05 dollars per diluted share, the prior year.

That came as net sales fell to 435.3 million dollars from 464.9 million dollars a year earlier.

Sales at Express and UpWest Brands fell 15 percent to 394.4 million dollars, while sales at Bonobos Brands, which Express acquired earlier this year, came in ahead of expectations at 40.9 million dollars.

Express reiterates FY outlook

“Second quarter net sales and diluted loss per share were within the ranges of our outlook and we are gaining momentum,” said Express CEO Tim Baxter in a statement.

He continued: “In the Express brand, we drove significant, sequential improvement each month driven by a powerful trend change in our women’s and e-commerce businesses. This momentum continued through Labor Day.

“Bonobos sales also exceeded our expectations, delivered operating income accretive to our total and is positioned to be a growth engine for EXPR.”

Baxter said the company has also taken “aggressive action” to improve its bottom line. It said it has identified and implemented 80 million dollars in savings in 2023, 120 million dollars in 2024, and 200 million dollars by 2025”.

The company has also secured a 65 million dollar term loan and expects to receive a 52 million dollar CARES Act refund in the second half of the year.

Express’ full-year outlook remains unchanged. It expects net sales of between 460 million dollars and 490 million dollars.

It forecasts a diluted loss per share of between 5.50 dollars and 7.50 dollars.