Express Inc.’s Comp Sales Fall 27 Pct Amid Pandemic

Express, Inc., which runs more than 500 retail and factory outlet stores in the U.S. and Puerto Rico, reported as part of its financial results that comparable sales were down 27 percent for the fourth quarter, according to a Wednesday (March 10) announcement.

The fashion apparel retailer reported that gross margin was 16.6 percent of net sales in the fourth quarter of 2020, in contrast to 27 percent in the fourth quarter of 2019. It said the decline was fueled by the effect of the pandemic and a $4.5 million “non-cash impairment charge taken against certain long-lived store assets,” according to the announcement.

Express also reported $134 million in selling, general and administrative (SG&A) expenses for fourth quarter 2020, compared to $148.9 million for the fourth quarter of 2019. It said the decline was fueled mainly by steps to mitigate the pandemic, a decrease in variable costs fueled by the sales decline and the business restructuring that was revealed in the past, according to the announcement.

As for its overall results, Express reported 66 cents per share in adjusted diluted loss on $430.3 million in consolidated net sales for the quarter. The results came out ahead of analyst expectations of a loss per share of 82 cents on $424.72 million in revenues.

Express said it executed many measures to bolster liquidity amid the coronavirus pandemic such as negotiating $85 million in “rent abatements, deferrals and future rent reductions,” with rent abatements comprising $50 million of that amount.

In 2020, $25 million of the rent abatements were executed, while the remaining $25 million have been agreed to and are anticipated to be executed in the first quarter of 2021.

For eCommerce, Express said it is putting the finishing touches on a roadmap that will expand its digital channel and anticipates revealing the particulars of it in the second quarter of 2021.

The news comes as Kohl’s said that its fourth quarter sales dropped 10.1 percent, tempered by a 21 percent rise in its digital operations.