Shares of Express Inc. (EXPR) rose 2.6% in premarket trading Wednesday, showing signs of recovery after hitting a record low in the previous session. The fashion apparel retailer announced its fiscal second-quarter results, which were in line with expectations, while also securing a $65 million term loan to strengthen its liquidity.
During the quarter ending July 29, Express Inc. experienced a significant shift in its financials. The company reported a net loss of $44.1 million, or $11.79 per share, compared to a net income of $7.0 million, or $2.05 per share, in the same period last year. This per-share loss was consistent with the guidance range of $10 to $12, after adjusting for a 1-for-20 reverse stock split that became effective on Aug. 30. Net sales fell 6.4% to $435.3 million, mainly due to increased promotional activity. The gross margin contracted to 23.1% from 33.1%.
Despite the challenging second quarter, Express Inc. maintains its positive outlook for fiscal year 2023. The company expects sales to reach $1.9 billion to $2.0 billion, while predicting further per-share losses in the range of $30 to $34.
Express Inc.'s stock closed at a split-adjusted record low of $8.20 on Tuesday, reflecting a significant decline of 34.6% over the past three months. In contrast, the S&P 500 index (SPX) has seen a gain of 5.0% during the same period.
Express Inc.'s new term loan and optimistic future projections provide hope for investors as the company navigates through these challenging times.