Express Q2 sales continue to grow despite slump in online revenues
Fashion retailer Express Inc. announced on Wednesday net sales for the second quarter ending July 30 increased 2% to $464.9 million, on the back of strong physical retail sales, which offset a decline in online revenues.
The Columbus, Ohio-based Express said comparable retail sales, which includes both Express stores and e-commerce, were up 1% compared to the second quarter of 2021. Retail stores drove a 6% increase while e-commerce demand declined 6%, with the company adding it remains committed to achieving its long-term goal of $1 billion in e-commerce demand.
Other highlights included a comparable outlet store sales increase of 2%, versus the second quarter of 2021.
For the quarter, net income dropped to $7 million, or $0.10 per diluted share, from $10.6 million, or $0.15 per diluted share.
Furthermore, net sales for the half year increased to $915.7 million, from $803.4 million last year, the company said.
"In the second quarter, we delivered our fifth consecutive quarter of positive comparable sales compared to pre-pandemic levels, drove gross margin expansion of 50 basis points and delivered operating income of $10 million," said Tim Baxter, chief executive officer.
"While our performance was below our outlook, we achieved solid results despite challenging macroeconomic conditions that worsened as the quarter progressed. While we have lowered our outlook for the back half of this year to reflect the uncertainty of macroeconomic conditions, we remain committed to our long-term objective of a mid-single digit operating margin. We have demonstrated our ability to stay focused on the fundamentals, control the controllables, and operate with both discipline and agility," Baxter concluded.
Looking ahead, Express said it now expects full-year 2022 comparable sales to increase by mid-single digits. It expects to record a diluted loss per share of $0.16 to $0.22.
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