Express' stock bounces off record low losses come in within the expected range, term loan secured

Shares of Express Inc. (EXPR) rose 2.6% in premarket trading Wednesday, to bounce off the previous session's record low, after the fashion apparel retailer reported fiscal second-quarter results that were in line with expectations and said it secured a $65 million term loan to bolster liquidity. For the quarter to July 29, the company swung to a net loss of $44.1 million, or $11.79 a share, from net income of $7.0 million, or $2.05 a share, in the year-ago period. The per-share loss was in line with guidance of $10 to $12, which was adjusted from actual guidance of 50 cents to 60 cents as a 1-for-20 reverse stock split took effect on Aug. 30. Net sales fell 6.4% to $435.3 million. Gross margin contracted to 23.1% from 33.1%, amid increased promotional activity. The company still expects fiscal 2023 sales of $1.9 billion to $2.0 billon and per-share losses of $30 to $34. The stock, which closed at a split-adjusted record low of $8.20 on Tuesday, has plunged 34.6% over the past three months, while the S&P 500 has gained 5.0%.

-Tomi Kilgore

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09-06-23 0648ET

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