Express Q4 comparable sales increase by 43 percent

For the fourth quarter, Express, Inc. reported consolidated net sales increase of 38 percent to 594.9 million dollars, with consolidated comparable sales up 43 percent. Compared to 2019, consolidated comparable sales increased by 4 percent.

Full year consolidated net sales increased 55 percent to 1,870 million dollars, with consolidated comparable sales up 37 percent. Compared to 2019, consolidated comparable sales decreased by 2 percent.

"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. Comparable sales improved sequentially throughout the year, culminating in a positive 4 percent comp in the fourth quarter compared to 2019. We had a strong holiday season and our momentum has continued," said Tim Baxter, the company’s chief executive officer.

Express returns to profit in Q4

Comparable retail sales, which includes both Express stores and ecommerce, increased 45 percent compared to the fourth quarter of 2020 and 4 percent compared to 2019. Comparable outlet sales increased 39 percent compared to the fourth quarter of 2020 and 1 percent compared to 2019.

The company’s gross margin was 29.2 percent of net sales compared to 16.6 percent in last year's fourth quarter, an increase of approximately 1,260 basis points. Compared to 2019, gross margin increased by 220 basis points.

Operating income was 10.3 million dollars compared to a loss of 62.7 million dollars in the fourth quarter of 2020 and a loss of 189.9 million dollars in the fourth quarter of 2019.

Net income was 7.6 million dollars or 11 cent per diluted share compared to a net loss of 53.3 million dollars or a loss of 82 cents per diluted share, last year’s fourth quarter. On an adjusted basis, net loss was 43.1 million dollars or a loss of 66 cents per diluted share, in the fourth quarter of 2020.

EBITDA was 25.8 million dollars compared to negative EBITDA of 45 million dollars in the fourth quarter of 2020. EBITDA was negative 168.7 million dollars in the fourth quarter of 2019.

Express full year 2021 operating results

Comparable retail sales, which includes both Express stores and ecommerce, increased 41 percent compared to 2020. Comparable outlet sales increased 27 percent versus 2020.

Operating income was 0.8 million dollars compared to a loss of 455.2 million dollars in 2020. Net loss was 14.4 million dollars or a loss of 22 cents per diluted share. On an adjusted basis, net loss was 15 million dollars or a loss of 23 cents per diluted share. This compares to a net loss of 405.4 million dollars or a loss of 6.27 dollars per diluted share, in 2020. On an adjusted basis, net loss was 314.3 million dollars or a loss of 4.86 dollars per diluted share, in 2020.

EBITDA for the year was 64.7 million dollars compared to negative EBITDA of 384.7 million dollars in 2020. EBITDA was negative 132.8 million dollars in 2019.

Express projects FY22 comparable sales to increase 7 to 9 percent

For the first quarter of 2022, the company expects comparable sales to increase 25 percent to 30 percent and gross margin rate to increase approximately 550 basis points.

For the full year ahead, the company expects comparable sales to increase 7 percent to 9 percent and gross margin rate to increase approximately 100 basis points.