Apparel retailer, Express, has announced financial results for the fourth quarter and full year of 2021. “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. 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,” said Tim Baxter, Chief Executive Officer.
Q4 Highlights:
- 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.
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
- 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
- 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,” added Baxter.
Source: Express Inc Press Release
Photo Credit: PYMNTS
