American retailer Express' net sales at $435.3 mn in Q2 FY23

The selling, general, and administrative expenses were recorded at $146.1 million, representing 33.6 per cent of net sales, a raise against $143.3 million, or 30.8 per cent of net sales, witnessed in the same quarter of FY22, the company said in a press release.

Express’ operating loss was $39.6 million Q2 FY23, which starkly contrasts with the operating income of $10.4 million accrued in Q2 FY22. The net loss exacerbated to $44.1 million, equating to $11.79 per diluted share. This was a downturn from a net income of $7 million, or $2.05 per diluted share, documented in the second quarter of the previous fiscal.

For the Express and UpWest brands, the company noted a 15 per cent reduction in net sales in Q2 FY23 amounting to $394.4 million, down from $464.9 million in the corresponding quarter of the previous year. Furthermore, the comparable sales experienced a decline of 14 per cent, albeit witnessing a significant sequential improvement monthly.

Breaking down further, the comparable retail sales, encompassing both Express stores and e-commerce platforms, were down by 13 per cent in comparison to the second quarter of FY22. While the retail stores saw a decline in comparable sales by 21 per cent, e-commerce platforms suffered a 1 per cent decrease. Additionally, the quarter also observed a reduction in comparable outlet sales by 17 per cent compared to the same period in FY22.

The company’s Bonobos brand registered net sales that exceeded expectations, racking up $40.9 million.

Inventory was $415.8 million, including $55.7 million of Bonobos inventory, at the end of the second quarter of FY23, up 20 per cent compared to $346.2 million at the end of the second quarter of FY22.

"Second quarter net sales and diluted loss per share were within the ranges of our outlook, and we are gaining momentum. In the Express brand, we drove significant, sequential improvement each month driven by a powerful trend change in our women’s and e-commerce businesses. This momentum continued through Labor Day," said Tim Baxter, chief executive officer. "Bonobos’ sales also exceeded our expectations, delivered operating income accretive to our total and is positioned to be a growth engine for Express."

Fibre2Fashion News Desk (DP)