Express hits 3-month high as WHP Global takes stake

Express

08/12/2022 17:03

(Updates)
    ** Shares of fashion apparel retailer Express Inc  EXPR.N 
surge as much as 67.2% to $2.14 - over three-month high
    ** Stock last up ~24%, on pace to record its best day since
June 2021
    ** EXPR says brand management firm WHP Global to take 7.4%
stake in EXPR for $25 mln; WHP will acquire 5.4 mln newly issued
EXPR shares at $4.60/share 
    ** EXPR, WHP also form jv valued at ~$400 mln, with WHP
investing $235 mln for 60% ownership and EXPR to own the rest
    ** Transaction, which is expected to close in fiscal Q4
2022, will help EXPR strengthen its balance sheet by providing
capital to acquire brands and reduce debt, co says
    ** Separately, EXPR also reports Q3 results; net sales fall
8% to $434.1 mln
    ** Co also reports a net loss of $34.4 mln, or 50
cents/share, compared to a profit of $13.1 mln, or 19
cents/share, a year earlier
    ** YTD, stock down ~47% including session's move
 (Reporting by Shristi  Achar A and Deborah Sophia in Bengaluru)
 ((Shristi.AcharA@thomsonreuters.com;))