US fashion retailer Express' revenue exceeded expectations in the first quarter! E-commerce sales increased by 21% year-on-year!

It is learned that the US fashion retailer Express released its 2022Q1 quarterly financial report ending March 30, which exceeded expectations. Revenue increased by 31% year-on-year, from US$345.8 million in the first quarter of 2021 to US$450.8 million, exceeding the US$435.39 million forecast by Wall Street analysts. Sales growth in all major categories reached double digits, active buyers reached a new high, and buyer loyalty achieved a new breakthrough. Its stock price rose by more than 11% after the financial report was released.

Express e-commerce sales increased 21% year-on-year in the first quarter, and is expected to reach the $1 billion mark by 2024. Supply chain costs were $6 million, but gross profit still increased by 640 basis points, and sales increased by 20% by increasing full-price sales and reducing promotional activities. Losses amounted to $9.1 million, significantly narrowed from $40.6 million in the first quarter of 2021. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $5.8 million, while negative EBITDA in the first quarter of 2021 was $23.8 million.

Inventory at the end of the first quarter was $371.2 million, up 40% from $264.5 million at the end of the first quarter of 2021, primarily due to forward purchasing to mitigate supply chain challenges and delayed packing and retention of holiday inventory.

It is understood that Express expects sales to increase by mid-single digits in the second quarter of 2022, gross margin to increase by about 100 basis points, and inventory to continue to increase. Sales are expected to increase by 8%-10% in 2022, gross margin to increase by at least 100 basis points, SG&A expenses to be roughly flat as a percentage of sales, and diluted earnings per share to be $0.24 to $0.34. After adjusting for the impact of changes in valuation allowances recorded for deferred tax assets, adjusted diluted earnings per share are $0.14 to $0.20.

Editor ✎Estella/

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