American retailer Express' sales soar 5% in Q3 FY23

However, within its brand segments, there were variations. Express and UpWest brands experienced a 7 per cent decrease in net sales, falling to $402.0 million, with comparable sales down by 6 per cent. Comparable retail sales, including both Express stores and e-commerce, declined by 4 per cent, with retail store comparable sales dropping by 16 per cent, while e-commerce comparable sales increased by 10 per cent. Comparable outlet sales also saw a decline of 13 per cent.

On the other hand, the Bonobos brand reported net sales of $52.1 million, the company said in a media release.

The gross margin for Q3 FY23 was 24.1 per cent of net sales, a decrease of approximately 370 basis points compared to the same quarter in the previous year. Selling, general, and administrative expenses were $143.6 million, representing 31.6 per cent of net sales, compared to $150.1 million (34.6 per cent of net sales) in the third quarter of 2022.

Express reported an operating loss of $28.7 million for Q3 FY23, which includes a $1.1 million non-cash impairment charge. This marks a slight improvement from an operating loss of $29.5 million in the same period in 2022.

The net loss for Q3 FY23 was $36.8 million, or $9.83 per diluted share, compared to a net loss of $34.4 million, or $10.09 per diluted share, in the third quarter of 2022.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter were negative $17.1 million, compared to negative $14.5 million in the third quarter of 2022.

"During the past three months, I have had the opportunity to assess our operating capabilities, organisational structure and processes, marketing and customer acquisition abilities, and merchandise and product strategies," said Stewart Glendinning, chief executive officer. "Express has the right building blocks in place with a strong portfolio of brands, a high-potential partnership with WHP and a premier omnichannel platform. Our efforts to unlock our full potential and improve our performance are already underway."

Fibre2Fashion News Desk (DP)