Express hits over 2-1/2 year low on forecast for wider FY loss

Express

24/05/2023 16:38

(Updates)
    ** Shares of apparel retailer Express Inc  EXPR.N  fall as
much as ~19% to over 2-1/2 year low of $0.66 
        ** Stock on course for worst day since Dec. 9, 2022, if
current levels hold 
  
    ** Co forecasts a wider FY 2023 loss; says higher discounts
to clear excess inventory and rising costs to weigh on margins  
    ** Sees full-year diluted loss/shr between $1.50 - $1.70 vs
prior forecast of loss of $0.85 - $1.05
    ** Expects annual net sales between $1.9 bln - $2.0 bln vs
$1.86 bln reported in 2022 
    ** For Q1, co reports a 15% fall in revenue, hurt by
price-sensitive consumers pulling back on discretionary
spending; gross margin contracted to 16.6% from 29.2% a year
earlier
    ** "Experienced a deceleration in our men's and outlet
stores businesses due to softness in traffic" - CEO Tim Baxter
    ** YTD, stock down 34.3%

 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth))