Express Clocks 47% Net Sales Growth In Q3, Misses Consensus

Express Inc EXPR reported third-quarter FY21 sales growth of 46.6% year-on-year, to $471.98 million, missing the analyst consensus of $503.10 million. Comparable sales increased 46% versus last year and 3% compared to 3Q FY19.
Comparable retail sales, including Express stores and eCommerce, increased 52%, and comparable outlet store sales rose 33%.
The gross profit margin expanded 2890 basis points Y/Y to 33.2%. Gross margin increased by 500 basis points versus 3Q FY19.
The operating margin was 3.4%, and operating income for the quarter was $16.3 million versus a loss of $(110.9) million last year.
Operating expenses climbed 12.6% Y/Y to $140.6 million.
The company held $36.8 million in cash and equivalents as of October 30, 2021. Cash generated by operating activities for nine months totaled $78.3 million.
Inventory increased 9% Y/Y to $383.6 million.
Adjusted EPS was $0.17 versus the analyst consensus of $0.02.
The company's board has named Antonio J. Lucio as a Class III director, effective today.
Outlook: Express expects Q4 comparable sales to increase by low-single digits versus FY19.
Price Action: EXPR shares are trading higher by 4.44% at $3.53 in premarket on the last check Thursday.

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