Shares of apparel and accessories provider Express, Inc. (EXPR) have gained 500% over the past year. Express is a fashion retailer that sells online, and in physical locations.
Express delivered better-than-estimated Q2 numbers on August 25, and also provided an improved outlook for H2 2021.
Let’s take a look at Express’ latest financials, as well as what has changed in its key risk factors that investors should be aware of. (See Express Inc stock charts on TipRanks)
In Q2, the company’s net sales rose 86% year-over-year to $458 million, beating consensus by $9.7 million. Consolidated comparable sales were up 42% over the previous year. Additionally, Express witnessed a 28% growth in the eCommerce channel in Q2, as compared to a year-ago period.
Express’ earnings per share of $0.02 beat analysts’ estimates by $0.32. In comparison, the company had incurred a net loss per share of $1.48 in the year-ago period.
CEO Tim Baxter remarked, “We are in the midst of an exciting transformation from being known as a store in the mall to a brand with a purpose powered by a styling community.
“Our second-quarter results and momentum into the third quarter reflect the power of the EXPRESSway Forward strategy, and the innovative Express Community Commerce program we announced in July is the next step in our transformation.”
The company remains focused on reaching $1 billion in eCommerce demand by 2024. Buoyed by the robust Q2 numbers, Express expects net sales for the second half of 2021 to be above 2019 levels on a comparable basis. It estimates gross margin to be about 200 basis points above 2019 levels for the same period.
Now, let’s have a look at what’s changed in the company’s key risk factors.
According to the new TipRanks Risk Factors tool, Express’ main risk category is Finance & Corporate, accounting for 31% of the total 36 risks identified. Since July, the company has added two key risk factors.
Under the Finance & Corporate risk category, the company highlighted that a sudden spurt in demand for Express shares “that largely exceeds supply and/or focused investor trading in anticipation of a potential short squeeze” has resulted in, and may again result in, extreme price volatility in the company’s shares.
The second risk, under the Ability to Sell category, is that Express has received and may continue to receive high media coverage. The information published by third parties may include statements that are not attributable to Express and thus may not be reliable or accurate.
The sector average Ability to Sell risk factor is 17%, while Express’ is 25%.
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