Shares of apparel and accessories provider Express, Inc. (NYSE:EXPR) are in a freefall today after the company announced first-quarter numbers.
During the quarter, EXPR’s revenue declined 15% year-over-year to $383.3 million, lagging expectations by about $6 million. Net loss per share at $0.99 came in wider than estimates by about $0.20.
Further, consolidated comparable sales dropped by 14% amid lower consumer spending and challenges associated with product assortments. Express is now undertaking cost-reduction initiatives to drive operational efficiencies.
Separately, the company and WHP Global have completed the acquisition of Bonobos for $75 million. While WHP has acquired the Bonobos Brand for $50 million, Express has snapped up the operating assets (and assumed associated liabilities) from Bonobos for $25 million.
The move is expected to boost Express’ brand portfolio, drive sales growth and provide economies of scale to the company. Looking ahead, for the full-year 2023, Express now expects net sales to range between $1.9 billion and $2 billion (Bonobos is expected to contribute $125 million to $150 million).
Net loss per share for the year is anticipated between $1.50 and $1.70.
With today’s price decline, Express shares have now corrected nearly 26.3% year-to-date.
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