US’ fashion apparel retailer Express, Inc has reported an 8-per cent decrease in net sales to $434.1 million in the third quarter (Q3) of financial year 2022 (FY22), compared to $472 million in the third quarter of FY21. The company’s gross margin was 27.8 per cent of net sales in Q3 FY22, compared to 33.2 per cent in last year's third quarter, a decrease of approximately 540 basis points.

In Q3 FY22, comparable retail sales, which includes both Express stores and e-commerce, were down 11 per cent compared to the third quarter of 2021. Retail stores decreased 6 per cent, while e-commerce demand declined 17 per cent. Comparable outlet store sales remained flat versus the third quarter of 2021.

Selling, general, and administrative expenses in Q3 FY22 were $150.1 million, 34.6 per cent of net sales, versus $141.1 million, 29.9 per cent of net sales, in last year's third quarter.

Operating loss in Q3 FY22 was $29.5 million, compared to income of $16.3 million in Q3 FY21. The company’s net loss was $34.4 million, or $0.50 per diluted share. This compares to net income of $13.1 million, or $0.19 per diluted share, for the third quarter of 2021

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) was negative $14.5 million compared to EBITDA of $31.9 million in Q3 FY21.

For the first three quarters ended October 29, 2022, operating cash flow was negative $95.9 million, compared to $78.3 million for the first three quarters of FY21.

For fiscal 2022, Express expects comparable sales to be flat or up 1 per cent as compared to FY21. The gross margin rate is expected to decrease approximately 150 basis points. Selling, general, and administrative expenses as a percentage of sales are estimated to deliver approximately 200 basis points. Furthermore, the company expects a diluted loss per share of $1.12 to $1.22 in FY22, as compared to FY21.

Fibre2Fashion News Desk (DP)

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