For the third quarter, Express, Inc. said, consolidated net sales increased 47 percent to 472 million dollars, with consolidated comparable sales up 46 percent. The company said, compared to 2019, consolidated comparable sales increased by 3 percent.
The company’s comparable retail sales, which includes both Express stores and ecommerce, increased 52 percent compared to the third quarter of 2020. Comparable outlet store sales increased 33 percent versus the third quarter of 2020.
“Our strong third quarter results reflect the second consecutive quarter of profitable growth and positive comparable sales versus 2019, and demonstrate the power of our Expressway Forward strategy,” said Tim Baxter, the company’s chief executive officer.
Express reports strong Q3
Gross margin for the quarter was 33.2 percent of net sales compared to 4.3 percent in last year’s third quarter, an increase of approximately 2,890 basis points. Compared to 2019, gross margin increased by 500 basis points.
The company added that net income was 13.1 million dollars or 19 cents per diluted share. On an adjusted basis, net income was 11.6 million dollars or 17 cents per diluted share. This compares to a net loss of 90.3 million dollars or a loss of 1.39 dollars per diluted share, in the third quarter of 2020. On an adjusted basis, net loss was 76.2 million dollars or a loss of 1.17 dollars per diluted share, in the third quarter of 2020.
EBITDA was 31.9 million dollars compared to negative EBITDA of 92.6 million dollars in the third quarter of 2020. EBITDA was 14.2 million dollars in the third quarter of 2019.
Express updates on the outlook
The company expects comparable sales to increase by low-single digits for the fourth quarter against 2019. Gross Margin rate to be approximately 100 basis points higher for the fourth quarter, including approximately 15 million dollars of expenses related to mitigating supply chain challenges.
Express said that the company is well positioned to achieve its long-term goals, including 1 billion dollars in ecommerce demand and over 100 million dollars in operating profit by 2024.