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March 09, 2022

Express, Inc. Reports Strong Fourth Quarter 2021 Results and Positive Operating Income for Full Year 2021

Fourth quarter positive comparable sales and gross margin expansion exceeded expectations

  • Net sales increased 38% in the fourth quarter compared to 2020. Consolidated comparable sales increased 43% compared to 2020 and 4% compared to 2019
  • Strong growth in fourth quarter eCommerce demand of 33% versus 2020 and 21% versus 2019; on track to achieve goal of $1 billion in eCommerce demand by 2024
  • Generated positive full year operating income driven by operating income of $10 million in the fourth quarter
  • Generated full year EBITDA of $65 million and operating cash flow of $89 million
  • Provides first quarter and full year 2022 outlook, and expects comparable sales to increase 25% - 30% in the first quarter and 7% - 9% in the full year compared to 2021

COLUMBUS, Ohio--(BUSINESS WIRE)-- Fashion apparel retailer Express, Inc. (NYSE: EXPR), announced its financial results for the fourth quarter and full year 2021. These results, which cover the thirteen and fifty-two weeks ended January 29, 2022, are compared to the thirteen and fifty-two weeks ended January 30, 2021. Certain results are compared to the thirteen and fifty-two weeks ended February 1, 2020, as indicated.

"In 2021, we delivered profitable growth in the second, third and fourth quarters, and drove positive operating income and free cash flow for the full year," said Tim Baxter, Chief Executive Officer. "Comparable sales improved sequentially throughout the year, culminating in a positive 4% comp in the fourth quarter compared to 2019. We had a strong holiday season and our momentum has continued."

"Our transformation has been driven by significant progress in each of the four foundational pillars of the EXPRESSway Forward strategy: Outstanding product, a relevant and compelling brand purpose, a customer loyalty program driving higher engagement, and solid execution. The momentum of our business is tangible evidence that the strategy is working," continued Baxter.

Full Year 2021 Highlights

  • Increased sales by 55% and comparable sales by 37% compared to 2020, driven by outstanding consumer response to our product and momentum in both retail and outlet channels
  • Drove a 32% increase in eCommerce demand compared to 2020 and saw increases across all key metrics for our website and mobile app, including traffic, conversion, average order value, and average unit retail
  • Delivered gross margin improvement of 260 basis points compared to 2019, including the negative impact of $18 million of expense related to supply chain challenges
  • Generated $65 million of EBITDA and $55 million of free cash flow
  • Significantly reduced promotional activity and increased full-price selling which delivered a 13% increase in average unit retail compared to 2019
  • Successfully engaged existing customers and acquired new ones, ending the year with the highest number of active loyalty members in the Company's 40-year history

"We are well positioned to build upon this success and continue our momentum in 2022. We are on track to achieve our goal of $1.0 billion in eCommerce demand, and expect to generate a mid-single digit operating margin and over $100 million in operating profit, by 2024," Baxter concluded.

Fourth Quarter 2021 Operating Results

  • Consolidated net sales increased 38% to $594.9 million from $430.3 million in the fourth quarter of 2020, with consolidated comparable sales up 43%. Compared to 2019, consolidated comparable sales increased by 4%.
    • Comparable retail sales, which includes both Express stores and eCommerce, increased 45% compared to the fourth quarter of 2020 and 4% compared to 2019.
    • Comparable outlet sales increased 39% compared to the fourth quarter of 2020 and 1% compared to 2019.
  • Gross margin was 29.2% of net sales compared to 16.6% in last year's fourth quarter, an increase of approximately 1,260 basis points. Compared to 2019, gross margin increased by 220 basis points.
    • Merchandise margin improved approximately 590 basis points compared to 2020 driven by positive customer response to our new receipts and significant reduction in promotional activity.
    • Buying and occupancy expenses leveraged approximately 670 basis points compared to 2020 due to increased sales and rent reductions.
  • Selling, general, and administrative (SG&A) expenses were $163.2 million, 27.4% of net sales, versus $134.0 million, 31.1% of net sales, in last year's fourth quarter. The improvement in SG&A rate is primarily driven by leveraging the increased sales. The $29.2 million increase versus 2020 is mainly driven by last year's pandemic related store closures and current year incremental investments in marketing.
  • Operating income was $10.3 million compared to a loss of $62.7 million in the fourth quarter of 2020 and a loss of $189.9 million in the fourth quarter of 2019.
  • Net income was $7.6 million, or $0.11 per diluted share. This compares to a net loss of $53.3 million, or a loss of $0.82 per diluted share, in the fourth quarter of 2020. On an adjusted basis, net loss was $43.1 million, or a loss of $0.66 per diluted share, in the fourth quarter of 2020.
  • Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $25.8 million compared to negative EBITDA of $45.0 million in the fourth quarter of 2020. EBITDA was negative $168.7 million in the fourth quarter of 2019.

Full Year 2021 Operating Results

  • Consolidated net sales increased 55% to $1,870 million from $1,208 million in 2020, with consolidated comparable sales up 37%. Compared to 2019, consolidated comparable sales decreased by 2%. Comparable sales in the last three quarters were positive and improved sequentially throughout the year.
    • Comparable retail sales, which includes both Express stores and eCommerce, increased 41% compared to 2020.
    • Comparable outlet sales increased 27% versus 2020.
  • Operating income was $0.8 million compared to a loss of $455.2 million in 2020.
  • Net loss was $14.4 million, or a loss of $0.22 per diluted share. On an adjusted basis, net loss was $15.0 million, or a loss of $0.23 per diluted share, excluding the benefit of a partial release of the valuation allowance against the Company's deferred tax assets. This compares to a net loss of $405.4 million, or a loss of $6.27 per diluted share, in 2020. On an adjusted basis, net loss was $314.3 million, or a loss of $4.86 per diluted share, in 2020.
  • EBITDA was $64.7 million compared to negative EBITDA of $384.7 million in 2020. EBITDA was negative $132.8 million in 2019.

Balance Sheet and Cash Flow Highlights

  • Cash and cash equivalents totaled $41.2 million at the end of 2021 versus $55.9 million at the end of 2020.
  • Inventory was $358.8 million at the end of 2021, up 36% compared to $264.4 million at the end of 2020 driven primarily by actions taken to mitigate supply chain challenges to include increasing in transit times and holding late holiday deliveries for Fall 2022.
  • Short-term debt was $11.2 million and long-term debt was $117.6 million at the end of 2021 compared to long-term debt of $192.0 million at the end of 2020.
  • At the end of 2021, $145.8 million remained available for borrowing under the revolving credit facility.
  • Operating cash flow was $89.4 million for the full year ended January 29, 2022, compared to negative $323.6 million for the full year ended January 30, 2021, and $90.7 million for the full year ended February 1, 2020.
  • Capital expenditures totaled $34.8 million for the full year ended January 29, 2022, compared to $16.9 million for the full year ended January 30, 2021, and $37.0 million for the full year ended February 1, 2020.
  • Free cash flow was $54.6 million for the full year ended January 29, 2022, compared to negative $340.5 million for the full year ended January 30, 2021, and $53.7 million for the full year ended February 1, 2020.

2022 Outlook

This outlook is based on our strong 2021 performance and the power of our product, brand, and customer strategies balanced against the ongoing supply chain constraints, tight labor market and other inflationary pressures.

First Quarter 2022

The Company expects the following for the first quarter of 2022 compared to the first quarter of 2021:

  • Comparable sales to increase 25% - 30%
  • Gross Margin rate to increase approximately 550 basis points, including approximately $7 million of expenses related to mitigating supply chain challenges
  • SG&A expenses as a percent of sales to leverage approximately 250 basis points
  • Net interest expense of $4 million
  • Effective Tax rate of approximately 50%

Full Year 2022

The Company expects the following for the full year 2022 compared to the full year 2021:

  • Comparable sales to increase 7% - 9%
  • Gross Margin rate to increase approximately 100 basis points
  • SG&A expenses as a percent of sales approximately flat, including incremental investments in technology, higher labor expenses and general inflationary pressures
  • Net interest expense of $13 million
  • Capital expenditures of $50 - $55 million
  • Inventory elevated in the first half of the year and closer to parity with sales growth in the back half of the year

Assumptions in the Company outlook may be affected by the continued uncertainty of the pandemic and its impacts throughout the supply chain.

See Schedule 5 for a discussion of projected real estate activity.

Conference Call Information

A conference call to discuss fourth quarter and full year 2021 results is scheduled for March 9, 2022 at 9:00 a.m. Eastern Time (ET). Investors and analysts interested in participating in the earnings call are invited to dial (888) 550-5723 approximately ten minutes prior to the start of the call. The conference call will also be webcast live at www.express.com/investor and remain available for 90 days. A telephone replay of this call will be available beginning at 12:00 p.m. ET on March 9, 2022 until 11:59 p.m. ET on March 16, 2022, and can be accessed by dialing (800) 770-2030 and entering the replay pin number 1790468. In addition, an investor presentation of fourth quarter and full year 2021 results will be available at www.express.com/investor at approximately 7:00 a.m. ET on March 9, 2022.

About Express, Inc.

Grounded in versatility and powered by a styling community, Express is a modern, multichannel apparel and accessories brand whose purpose is to Create Confidence & Inspire Self-Expression. Launched in 1980 with the idea that style, quality and value should all be found in one place, Express has been a part of some of the most important and culture-defining fashion trends. The Express Edit design philosophy ensures that the brand is always ‘of the now’ so people can get dressed for every day and any occasion knowing that Express can help them look the way they want to look and feel the way they want to feel.

The Company operates over 550 retail and outlet stores in the United States and Puerto Rico, the express.com online store and the Express mobile app. Express, Inc. is comprised of the brands Express and UpWest, and is traded on the NYSE under the symbol EXPR. For more information, please visit www.express.com.

Forward-Looking Statements

Certain statements are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that does not directly relate to any historical or current fact and include, but are not limited to (1) guidance and expectations, including statements regarding expected operating margins, comparable sales, effective tax rates, interest income, net income, diluted earnings per share, cash tax refunds, liquidity, EBITDA, free cash flow, eCommerce demand, and capital expenditures, (2) statements regarding expected store openings, store closures, store conversions, and gross square footage, and (3) statements regarding the Company's strategy, plans, and initiatives, including, but not limited to, results expected from such strategy, plans, and initiatives. You can identify these forward-looking statements by the use of words in the future tense and statements accompanied by words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “scheduled,” “estimates,” “anticipates,” “opportunity,” “leads” or the negative version of these words or other comparable words. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict, and significant contingencies, many of which are beyond the Company's control. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are (1) changes in consumer spending and general economic conditions; (2) the COVID-19 pandemic and its continued impact on our business operations, store traffic, employee availability, financial condition, liquidity and cash flow; (3) our ability to operate our business efficiently, manage capital expenditures and costs, and obtain financing when required; (4) our ability to identify and respond to new and changing fashion trends, customer preferences, and other related factors; (5) fluctuations in our sales, results of operations, and cash levels on a seasonal basis and due to a variety of other factors, including our product offerings relative to customer demand, the mix of merchandise we sell, promotions, and inventory levels; (6) customer traffic at malls, shopping centers, and at our stores; (7) competition from other retailers; (8) our dependence on a strong brand image; (9) our ability to adapt to changing consumer behavior and develop and maintain a relevant and reliable omni-channel experience for our customers; (10) the failure or breach of information systems upon which we rely; (11) our ability to protect customer data from fraud and theft; (12) our dependence upon third parties to manufacture all of our merchandise; (13) changes in the cost of raw materials, labor, and freight; (14) supply chain or other business disruption, including as a result of the coronavirus; (15) our dependence upon key executive management; (16) our ability to execute our growth strategy, EXPRESSway Forward, including engaging our customers and acquiring new ones, executing with precision to accelerate sales and profitability, creating great product and reinvigorating our brand; (17) our substantial lease obligations; (18) our reliance on third parties to provide us with certain key services for our business; (19) impairment charges on long-lived assets; (20) claims made against us resulting in litigation or changes in laws and regulations applicable to our business; (21) our inability to protect our trademarks or other intellectual property rights which may preclude the use of our trademarks or other intellectual property around the world; (22) restrictions imposed on us under the terms of our asset-based loan facility, including restrictions on the ability to effect share repurchases; (23) changes in tax requirements, results of tax audits, and other factors that may cause fluctuations in our effective tax rate; (24) changes in tariff rates; and (25) natural disasters, extreme weather, public health issues, including pandemics, fire, acts of terrorism or war and other events that cause business interruption. These factors should not be construed as exhaustive and should be read in conjunction with the additional information concerning these and other factors in Express, Inc.'s filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

Schedule 1

Express, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

January 29, 2022

 

January 30, 2021

ASSETS

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$

41,176

 

 

$

55,874

 

Receivables, net

 

11,744

 

 

 

14,556

 

Income tax receivable

 

53,665

 

 

 

111,342

 

Inventories

 

358,795

 

 

 

264,360

 

Prepaid rent

 

5,602

 

 

 

7,883

 

Other

 

19,755

 

 

 

20,495

 

Total current assets

 

490,737

 

 

 

474,510

 

 

 

 

 

Right of Use Asset, Net

 

615,462

 

 

 

797,785

 

 

 

 

 

Property and Equipment

 

975,802

 

 

 

969,402

 

Less: accumulated depreciation

 

(827,820

)

 

 

(789,204

)

Property and equipment, net

 

147,982

 

 

 

180,198

 

 

 

 

 

Other Assets

 

5,273

 

 

 

5,964

 

TOTAL ASSETS

$

1,259,454

 

 

$

1,458,457

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current Liabilities:

 

 

 

Short-term lease liability

$

196,628

 

 

$

203,441

 

Accounts payable

 

231,974

 

 

 

150,230

 

Deferred revenue

 

35,985

 

 

 

32,430

 

Short-term debt

 

11,216

 

 

 

 

Accrued expenses

 

110,850

 

 

 

128,952

 

Total current liabilities

 

586,653

 

 

 

515,053

 

 

 

 

 

Long-Term Lease Liability

 

536,905

 

 

 

722,949

 

Long-Term Debt

 

117,581

 

 

 

192,032

 

Other Long-Term Liabilities

 

17,007

 

 

 

18,734

 

Total Liabilities

 

1,258,146

 

 

 

1,448,768

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

Total Stockholders’ Equity

 

1,308

 

 

 

9,689

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

1,259,454

 

 

$

1,458,457

 

Schedule 2

Express, Inc.

Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

 

January 29,
2022

 

January 30,
2021

 

January 29,
2022

 

January 30,
2021

Net Sales

$

594,929

 

 

$

430,335

 

 

$

1,870,296

 

 

$

1,208,374

 

Cost of Goods Sold, Buying and Occupancy Costs

 

421,381

 

 

 

358,924

 

 

 

1,311,829

 

 

 

1,213,281

 

GROSS PROFIT/(LOSS)

 

173,548

 

 

 

71,411

 

 

 

558,467

 

 

 

(4,907

)

Operating Expenses:

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

163,177

 

 

 

134,001

 

 

 

558,187

 

 

 

450,834

 

Other operating expense/(income), net

 

66

 

 

 

136

 

 

 

(499

)

 

 

(526

)

TOTAL OPERATING EXPENSES

 

163,243

 

 

 

134,137

 

 

 

557,688

 

 

 

450,308

 

 

 

 

 

 

 

 

 

OPERATING INCOME/(LOSS)

 

10,305

 

 

 

(62,726

)

 

 

779

 

 

 

(455,215

)

Interest Expense, Net

 

2,952

 

 

 

1,386

 

 

 

15,198

 

 

 

3,401

 

Other (Income)/Expense, Net

 

(298

)

 

 

 

 

 

(298

)

 

 

2,733

 

INCOME/(LOSS) BEFORE INCOME TAXES

 

7,651

 

 

 

(64,112

)

 

 

(14,121

)

 

 

(461,349

)

Income Tax Expense/(Benefit)

 

88

 

 

 

(10,832

)

 

 

315

 

 

 

(55,900

)

NET INCOME/(LOSS)

$

7,563

 

 

$

(53,280

)

 

$

(14,436

)

 

$

(405,449

)

 

 

 

 

 

 

 

 

EARNINGS PER SHARE:

 

 

 

 

 

 

 

Basic

$

0.11

 

 

$

(0.82

)

 

$

(0.22

)

 

$

(6.27

)

Diluted

$

0.11

 

 

$

(0.82

)

 

$

(0.22

)

 

$

(6.27

)

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING:

 

 

 

 

 

 

 

Basic

 

67,060

 

 

 

64,953

 

 

 

66,448

 

 

 

64,624

 

Diluted

 

69,243

 

 

 

64,953

 

 

 

66,448

 

 

 

64,624

 

Schedule 3

Express, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Fifty-Two Weeks Ended

 

January 29,
2022

 

January 30,
2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net loss

$

(14,436

)

 

$

(405,449

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization

 

67,622

 

 

 

73,698

 

Loss on disposal of property and equipment

 

140

 

 

 

901

 

Impairment of property, equipment, and lease assets

 

 

 

 

34,380

 

Equity method investment impairment

 

 

 

 

3,233

 

Share-based compensation

 

9,809

 

 

 

9,462

 

Deferred taxes

 

 

 

 

54,967

 

Landlord allowance amortization

 

(496

)

 

 

(416

)

Other non-cash adjustments

 

 

 

 

(500

)

Changes in operating assets and liabilities:

 

 

 

Receivables, net

 

2,812

 

 

 

(3,732

)

Income tax receivable

 

57,677

 

 

 

(108,342

)

Inventories

 

(94,435

)

 

 

(44,057

)

Accounts payable, deferred revenue, and accrued expenses

 

68,304

 

 

 

68,275

 

Other assets and liabilities

 

(7,617

)

 

 

(6,046

)

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

 

89,380

 

 

 

(323,626

)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Capital expenditures

 

(34,771

)

 

 

(16,854

)

NET CASH USED IN INVESTING ACTIVITIES

 

(34,771

)

 

 

(16,854

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Proceeds from borrowings under the revolving credit facility

 

148,000

 

 

 

165,000

 

Repayment of borrowings under the revolving credit facility

 

(219,050

)

 

 

(58,950

)

Proceeds from borrowings under the term loan facility

 

50,000

 

 

 

90,000

 

Repayment of borrowings under the term loan facility

 

(43,263

)

 

 

 

Proceeds on financing arrangements

 

 

 

 

2,634

 

Repayments of financing arrangements

 

(769

)

 

 

(1,864

)

Costs incurred in connection with debt arrangements

 

(471

)

 

 

(6,979

)

Repurchase of common stock for tax withholding obligations

 

(3,754

)

 

 

(626

)

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

 

(69,307

)

 

 

189,215

 

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

(14,698

)

 

 

(151,265

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

55,874

 

 

 

207,139

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

$

41,176

 

 

$

55,874

 

Schedule 4

Supplemental Information - Consolidated Statements of Income

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

The Company supplements the reporting of its financial information determined under United States generally accepted accounting principles (GAAP) with certain non-GAAP financial measures: adjusted net income/(loss), adjusted operating income/(loss), adjusted diluted earnings per share, EBITDA, and free cash flow.

How These Measures Are Useful

The Company believes that these non-GAAP measures provide additional useful information to assist stockholders in understanding its financial results and assessing its prospects for future performance. Management believes adjusted net income/(loss), adjusted operating income/(loss), adjusted diluted earnings per share, and EBITDA are important indicators of the Company's business performance because they exclude items that may not be indicative of, or are unrelated to, the Company's underlying operating results, and may provide a better baseline for analyzing trends in the business. In addition, adjusted diluted earnings per share and EBITDA are used as a performance measures in the Company's long-term executive compensation program for purposes of determining the number of equity awards that are ultimately earned and EBITDA is also a metric used in our short-term cash incentive compensation plan. Management believes that free cash flow provides useful information regarding liquidity as it shows our operating cash flows less cash reinvested in the business (capital expenditures).

Limitations of the Usefulness of These Measures

Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported net income/(loss), operating loss, or diluted earnings per share. These non-GAAP financial measures reflect an additional way of viewing the Company's operations that, when viewed with the GAAP results and the below reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of the Company's business. Management strongly encourages investors and stockholders to review the Company's financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

 

Fifty-Two Weeks Ended January 29, 2022

(in thousands, except per share amounts)

Operating
Income

 

Income Tax
Impact

 

Net Loss

 

Diluted
Earnings
per Share

 

Weighted
Average Diluted
Shares
Outstanding

Reported GAAP Measure

$

779

 

 

 

$

(14,436

)

 

$

(0.22

)

 

66,448

Valuation allowance on deferred taxes (a)

 

 

(521

)

 

 

(521

)

 

 

(0.01

)

 

 

Adjusted Non-GAAP Measure

$

779

 

 

 

$

(14,957

)

 

$

(0.23

)

 

 

  1. Valuation allowance released due to utilization of deferred tax assets in the current year.

 

Thirteen Weeks Ended January 30, 2021

(in thousands, except per share amounts)

Operating
Loss

 

Income Tax
Impact

 

Net Loss

 

Diluted
Earnings
per Share

 

Weighted
Average Diluted
Shares
Outstanding

Reported GAAP Measure

$

(62,726

)

 

 

 

$

(53,280

)

 

$

(0.82

)

 

64,953

Impairment of property, equipment and lease assets

 

4,527

 

 

(1,210

)

(a)

 

3,317

 

 

 

0.05

 

 

 

Valuation allowance on deferred taxes (b)

 

 

 

12,378

 

 

 

12,378

 

 

 

0.19

 

 

 

Tax impact of the CARES Act (c)

 

 

 

(5,507

)

 

 

(5,507

)

 

 

(0.08

)

 

 

Adjusted Non-GAAP Measure

$

(58,199

)

 

 

 

$

(43,092

)

 

$

(0.66

)

 

 

  1. Items tax affected at the applicable deferred or statutory rate.
  2. Valuation allowance provided against previously recognized deferred tax assets and 2020 losses, less net operating losses utilized under the CARES Act.
  3. Income tax benefit primarily due to a net operating loss carryback under the CARES Act to years with a higher federal statutory tax rate than is currently enacted.

 

Fifty-Two Weeks Ended January 30, 2021

(in thousands, except per share amounts)

Operating
Loss

 

Income Tax
Impact

 

Net Loss

 

Diluted
Earnings
per Share

 

Weighted
Average Diluted
Shares
Outstanding

Reported GAAP Measure

$

(455,215

)

 

 

 

$

(405,449

)

 

$

(6.27

)

 

64,624

Impairment of property, equipment and lease assets

 

34,380

 

 

(9,111

)

(a)

 

25,269

 

 

 

0.39

 

 

 

Equity method investment impairment (b)

 

 

 

(642

)

 

 

2,091

 

 

 

0.03

 

 

 

Valuation allowance on deferred taxes (c)

 

 

 

105,695

 

 

 

105,695

 

 

 

1.64

 

 

 

Tax impact of the CARES Act (d)

 

 

 

(42,060

)

 

 

(42,060

)

 

 

(0.65

)

 

 

Tax impact of executive departures (e)

 

 

 

111

 

 

 

111

 

 

 

 

 

 

Adjusted Non-GAAP Measure

$

(420,835

)

 

 

 

$

(314,343

)

 

$

(4.86

)

 

 

  1. Items tax affected at the applicable deferred or statutory rate.
  2. Impairment before tax was $2.7 million and was recorded in other expense, net.
  3. Valuation allowance provided against previously recognized deferred tax assets and 2020 losses, less net operating losses utilized under the CARES Act.
  4. Income tax benefit primarily due to a net operating loss carryback under the CARES Act to years with a higher federal statutory tax rate than is currently enacted.
  5. Represents the tax impact related to the expiration of former executive non-qualified stock options.

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

(in thousands)

January 29, 2022

 

January 30, 2021

 

January 29, 2022

 

January 30, 2021

Net income/(loss)

$

7,563

 

$

(53,280

)

 

$

(14,436

)

 

$

(405,449

)

Interest expense, net

 

2,952

 

 

1,386

 

 

 

15,198

 

 

 

3,401

 

Income tax expense/(benefit)

 

88

 

 

(10,832

)

 

 

315

 

 

 

(55,900

)

Depreciation and amortization

 

15,222

 

 

17,740

 

 

 

63,640

 

 

 

73,259

 

EBITDA (Non-GAAP Measure)

$

25,825

 

$

(44,986

)

 

$

64,717

 

 

$

(384,689

)

 

 

Thirteen Weeks Ended

 

Fifty-Two Weeks Ended

(in thousands)

 

February 1, 2020

Net loss

 

$

(141,616

)

 

$

(164,358

)

Interest income, net

 

 

(796

)

 

 

(2,981

)

Income tax benefit

 

 

(47,464

)

 

 

(50,526

)

Depreciation and amortization

 

 

21,201

 

 

 

85,099

 

EBITDA (Non-GAAP Measure)

 

$

(168,675

)

 

$

(132,766

)

 

Fifty-Two Weeks Ended

(in thousands)

January 29, 2022

 

January 30, 2021

 

February 1, 2020

Net cash provided by (used in) operating activities

$

89,380

 

 

$

(323,626

)

 

$

90,710

 

Less:

 

 

 

 

 

Capital expenditures

 

(34,771

)

 

 

(16,854

)

 

 

(37,039

)

Free Cash Flow (Non-GAAP Measure)

$

54,609

 

 

$

(340,480

)

 

$

53,671

 

Schedule 5

Express, Inc.

Real Estate Activity

(Unaudited)

 

 

 

 

Fourth Quarter 2021 - Actual

 

January 29, 2022 - Actual

Company-Operated Stores

Opened

Closed

 

Store Count

Gross Square Footage

Retail Stores

(5)

 

346

 

Outlet Stores

(4)

 

203

 

Express Edit Stores

 

5

 

UpWest Stores

1

(1)

 

7

 

TOTAL

1

(10)

 

561

4.7 million

 

 

 

 

 

 

First Quarter 2022 - Projected

 

April 30, 2022 - Projected

Company-Operated Stores

Opened

Closed

 

Store Count

Gross Square Footage

Retail Stores

(2)

 

344

 

Outlet Stores

(1)

 

202

 

Express Edit Stores

1

(1)

 

5

 

UpWest Stores

5

 

12

 

TOTAL

6

(4)

 

563

4.7 million

 

 

 

 

 

 

Full Year 2022 - Projected

 

January 28, 2023 - Projected

Company-Operated Stores

Opened

Closed

 

Store Count

Gross Square Footage

Retail Stores

(8)

 

338

 

Outlet Stores

(2)

 

201

 

Express Edit Stores

5

(1)

 

9

 

UpWest Stores

9

(1)

 

15

 

TOTAL

14

(12)

 

563

4.6 million

 

INVESTOR CONTACT
Greg Johnson
VP, Investor Relations
gjohnson@express.com
(614) 474-4890

Source: Express, Inc.

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