Express swings to profit on 86% rise in revenue
Columbus, Ohio-based fashion retailer Express, Inc. reported Q2 earnings of $10.6 million, or $0.15 per diluted share, on Wednesday, as sales increased 86% year over year to $457.6 million.
In the previous year’s second quarter, the company reported a net loss of $107.8 million, or $1.67 per diluted share. Strongly affected by the impact of temporary store closures related to the Covid-19 pandemic, the retailer’s sales in the period totaled $245.7 million.
Express’ consolidated comparable sales increased 42% between Q2 2020 and Q2 2021, with comparable retail sales rising 48% and comparable outlet store sales increasing 30%. Compared to the second quarter of 2019, when the company’s revenue was still unaffected by the pandemic, consolidated comparable sales rose 3%.
“Our performance across all channels in the second quarter was very strong on both the top and bottom line,” commented Express CEO Tim Baxter in a release. “We experienced an inflection point after the Fourth of July and have been driving a double digit comp versus 2019 since that time.”
Baxter further pointed out that the company’s e-commerce results were “particularly strong” in the quarter, highlighting that the retailer remains on track to achieve its goal of $1.0 billion in e-commerce demand by 2024.
Taking into account the first six months of 2021, the company’s net sales totaled $803.4 million in the first half of the fiscal year, up 76% from $456.0 million in the same period in 2020. Net loss was $35.1 million, or $0.53 per diluted share, compared to a loss of $261.8 million, or $4.07 per diluted share, in the prior-year period.
In light of its strong performance in the second quarter, Express has raised its outlook for the second half of 2021. The company now expects its net sales to be above 2019 levels on a comparable basis in the period.
Express currently operates more than 500 retail and factory outlet stores in the U.S. and Puerto Rico.
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