Comparable retail sales which includes both Express stores and e-commerce, were flat compared to the second quarter of 2021. Retail stores drove a 6 per cent increase while e-commerce demand declined 6 per cent. However, we remain committed to achieving our long-term goal of $1 billion in e-commerce demand, the company said in a press release.
The consolidated net sales of fashion apparel retailer Express increased 2 per cent to $464.9 million in the second quarter of fiscal 2022 from $457.6 million in the second quarter of 2021, with consolidated comparable sales up 1 per cent. The company achieved the fifth consecutive quarter of positive comparable sales compared to pre-pandemic levels.
“In the second quarter, we delivered our fifth consecutive quarter of positive comparable sales compared to pre-pandemic levels, drove gross margin expansion of 50 basis points and delivered operating income of $10 million,” said Tim Baxter, chief executive officer. “While our performance was below our outlook, we achieved solid results despite challenging macroeconomic conditions that worsened as the quarter progressed.”
“While we have lowered our outlook for the back half of this year to reflect the uncertainty of macroeconomic conditions, we remain committed to our long-term objective of a mid-single digit operating margin. We have demonstrated our ability to stay focused on the fundamentals, control the controllables, and operate with both discipline and agility,” Baxter concluded.
In the second quarter, the company delivered gross margin expansion of 50 basis points compared to 2021, driven by net sales growth and lower compensation-related expenses. It delivered 630 basis point expansion compared to 2019.
Fibre2Fashion News Desk (RR)