Fashion retailer Express Inc EXPR expects sales to be $400 million - $450 million and diluted loss per share to be $(0.50) to $(0.60) for the second-quarter FY23.
The preliminary earnings are within the previously announced guidance range.
"Net sales for the Express brand improved sequentially throughout the second quarter driven by the corrective actions we have taken to address imbalances in our women's assortment architecture. These results give us confidence that we will continue to see improvement in net sales for the Express brand in the back half of the year," said CEO Tim Baxter.
Expense Reductions: The company has unveiled a goal to deliver $150 million in annualized expense reductions by 2025 versus 2022 and has already identified and implemented $80 million for 2023 and $120 million for 2024.
The annualized cost reductions of $120 million for fiscal 2024 include a workforce reduction expected to generate savings of approximately $30 million.
On August 14, 2023, the Board of Directors authorized the implementation of a 1-for-20 reverse stock split of the company's common stock.
The reverse stock split is expected to be effected after market close on or about August 30, 2023, with the shares expected to begin trading on a split-adjusted basis at market open on or about August 31, 2023.
After the reverse stock split, the company's common stock will continue to trade on NYSE under the symbol EXPR with the new CUSIP number, 30219E 202.
Price Action: EXPR shares are trading lower by 6.86% at $0.6799 in premarket Friday.
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