Express sales flat in 2022, earnings up on WHP Global investment

By

Benjamin Fitzgerald

Published
Mar 25, 2023

Fashion retailer Express Inc. announced on Friday net sales for the year 2022 totalled $1.86 billion, unchanged on 2021, following a 2% dip in comparable sales and partially offset by retail store sales, up 5% annually. 

The Columbus, Ohio-based company reported an earnings surge for the full-year ending January 29, with net income totalling $293.8 million, or $4.25 per diluted share, compared to a net loss of $14.4 million, or $0.22 per diluted share, in 2021. The 2022 net income included the after tax impact of the $409.5 million gain on the strategic investment from WHP Global, which took a 60% stake in Express in December.

"This transformative strategic partnership begins a bold, new chapter for our company," said Tim Baxter, Chief Executive Officer, in talking about the WHP Global investment.

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"As part of the transaction, we received proceeds of $260 million which repositioned our company financially, and we are now beginning to reposition our company strategically. In addition to our focus on achieving profitable growth in our core Express business, we will also focus on optimizing our omnichannel platform across a portfolio of brands and accelerating our growth and profitability in partnership with WHP Global. We will accomplish this by operating with consistent, rigorous, sustainable financial discipline, and we are fully committed to creating long-term shareholder value."

Looking ahead, the company said it expects full-year 2023 comparable sales of positive low-single digits and diluted loss per share of $0.85 to $1.05 for the twelve-month period.

In February, the U.S. apparel retailer said it had named Tan France its new lead stylist. Most recently, Express announced the departure of COO, Matthew Moellering, effective May.