- Prachi Singh |
For its second quarter, Express Inc., reported consolidated net sales decrease of 48 percent to 245.7 million dollars, with consolidated comparable sales down 24 percent. The company said in a statement that comparable retail sales, which includes both Express stores and e-commerce, decreased 28 percent compared to the second quarter of 2019, while comparable outlet sales decreased 15 percent.
“When we began the transformation of Express, we certainly did not anticipate a global pandemic, and none of us could have imagined the duration or magnitude of its impact on the retail apparel industry”, said Tim Baxter, the company’s Chief Executive Officer, adding, “I am encouraged by the momentum in our ecommerce business, the strong response to our August fashion deliveries, and the increase in customer engagement with our brand messages. While mall traffic continues to be challenging, I would expect our results to improve as we move through the back half of the year.”
Gross margin for the quarter was negative 17.9 percent of net sales compared to 26.8 percent in last year’s second quarter driven by the sales impact of Covid-19, the liquidation of spring inventory that accumulated as a result of store closures, and a 6.8 million dollars non-cash impairment charges. The company added that operating loss was 136.3 million dollars compared to a loss of 9.8 million dollars in the second quarter of 2019, while net loss was 107.8 million dollars or a loss of 1.67 dollars per diluted share. On an adjusted basis, net loss was 95.6 million dollars or a loss of 1.48 dollars per diluted share for the second quarter of 2020.
Picture credit:Business Wire