EXPR - Earnings call transcript Q4 2021

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Operator

00:02 Good morning. My name is Chantal, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Express, Inc. Fourth Quarter and Full Year 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After [Operator you. Instructions] Thank hand now of over would I the Investor like President XX:XX Vice to conference Johnson, to Relations. Greg go Please ahead.

Greg Johnson

information, except Private both provided due call. may Good of you XXXX. statements information comments be assumes statements to company's presentation available conference Investor suggested safe statements by update company's the welcome XX:XX call, by Any number the the morning, filings within materially uncertainties, and of provisions. law. during the on and with containing you, investor to open Chantal. any the to forward-looking Actual those Thank required our no all in obligation made supplement today's forward-looking risks I'd will Express harbor the of as to except the like XX:XX reminding of SEC, our are today Act website. release. and in statements Our results constitute this historical detailed Securities deemed facts a in the Reform to release which differ may press from described future or Litigation including meaning forward-looking of those Relations press

of addition, GAAP to discussed amounts our In on in any reported our a can you in locate release. reconciliation earnings under results adjusted our comments website or

Relations the Interim to tomorrow Global otherwise a comparisons and Matt Operating X:XX providing event Matt unless Baxter, Eastern morning financial and fireside prepared Time. fiscal be our refer and Executive Consumer item, and Tim periods Officer. today Financial chat be will Tim prior today Investor Conference on Chief participating Officer; webcast and be Moellering, one to at will also This will We Chief XX:XX XXXX, Chief website. AM Retail With additional in UBS are at Officer And our remarks President noted. me and

Tim. now turn I to the please call over us. will XX:XX join So

Tim Baxter

QX our brand free the has XX:XX a from advanced our business brand with community. $XX million well to Comparable in good positive margin over to on of morning sales the We XXXX. and accelerated we full a XXXX, delivered basis in XX% has XXXX. a margin XXX sales EBITDA of generated of as We XXX and quarter and drove consecutive positive full and galvanized achieved million, of income Greg you, quarters basis $XX improved compared and associated purpose EXPRESSway comp income and year. The holiday points of year. mall million. accelerated million $XX cash We strong sales $XX everyone. the period, year. million QX, momentum free positive a powered million had XXXX a Forward $XX quarter in EPS drove our our for over operating store QX the X with Thank including grew are strategy million fourth and We gross XX:XX $XX the ongoing and comparable challenges. to million compared flow XXXX generated continued. chain for Sales of of improvement by operating the positive negative of fourth In combined delivered known for achieved XXXX. quarter to supply XXXX our We points effectively XX% grew we positive X% season In a each versus of expense flow full the EBITDA $XX and organization, being cash gross impact compared XX:XX $X.XX. income operating and and of the of $XX way We styling

to more margins. customers selling are loyal elevated stronger We more product at

number achieved are foundational product, members advance of come, exiting year of the bringing retail with company's we XX-year X the highest one reimagined execution. to is strategy: XXXX. the of we've each some Forward unit still year And across style, what active was XX% continue in brand, more more EXPRESSway customer history. We for XX:XX pillars loyalty of assortment. and completely and the starting to compared versatility through each average product. I'll We up our with you Our to and newness our results our the entire take product, more with the

organic has drove Our the year Our recent in as been tops In and year. were women's and XX% nearly its a but pillar is delivered our suits delivering grew $XX best full the our posted XXXX. and in of around the generated a by sales the knit in for XX% XXXX, historically history. polos second in to XX% progressed. our brand. best Dresses delivering tees feedback, health XX:XX positive collection Google through million the comp January increasing and the XX:XX disproportionately history, categories for strength graphic Introduced versus and significantly recent performance our XXXX. the indicators and versus the brand compared the pandemic that contour XX% continuing men's men's, were comp XXXX. quarter to second plus engagement in results tracking of all vitality the Customer versus of continue year media to to the customer and measures, Express in important denim this brand in positive of consecutive was XX% first occasion and year comps have average denim response Xth down compared on impacted based between social increase. balance up demand month, Brands Essentials May XXXX, year the been quarter accelerated Starting incredible. body end

social We consumed, new when our our launched platforms. platforms TikTok, across over Instagram kicked the we Only We quarter all evolved reflect exciting being and to the fourth had Reels Kelly live how million content where and are across spot is special, Our QX. introduced video streams. and leveraging on the which One off in marketing a Commerce million Our views segment brand XXX show and XXX XX:XX we very over brand with program to more Adele campaign Community QX. has impressions in these on generated Clarkson Night dimension

lead style Zoe engagement program. Rachel the and in already has and QX, brought editor to authority Our joined outsized fashion awareness us

Our XXX,XXX garnered and stream viewers on highlighting shopping live selections first outfits Live. nearly Express.com Express event Facebook her

You'll be third a hearing lot more XX:XX is Our program pillar this about the months. coming customer. in

acquiring are We and customers engaging successfully existing ones. new

and new company's capabilities in new history. as year in Our number X.X identified has previously And with re-launched to Express We customers in customers. the compared Insider of quarter highest improved the fourth X.X advanced refined increased lapsed brought grew and million execution. spend XX:XX XX% loyalty meaningful we the and the loyalty We program mentioned, fourth our customer XX% ended efficiencies. and I members spend the financial customer million Total file. active our of customer our XXXX. Our operational reactivated process, is by go-to-market multi-channel quality pillar

We and functionality demand app an X.X have chain execute and provide year saw million I'll our for starting over or only customers one execution strong the retail. spending in rightsized higher by average and investments. that drove and was to financial all XXX this XXXX drove momentum the now making goal strategy. discipline compared our XX:XX XXXX, we mobile have features each visits average who to by to stores and increases We in applied full demand our metrics: more that helped progress XXXX. of conversion, eCommerce one to by $X channels. increased highly and traffic, on with last a in Traffic customers target. most achieve of average effectively XX:XX year billion achieve expenses through nearly our and We shopped fleets, each a order to on navigated key both and up across XX% XX% website demand We users, closed unit app XX across XX% supply points sales begun update engaged value basis strengthened began optimization challenges our all added more conversion a year. With increase $XXX in than increased track We order stores. fleet X than value XX%, accelerate Outstanding year our XXXX stated to and for and are throughout eCommerce

our stores a our of our strategy in we to progress this the compared important brand. and average year in are stores for XX% drove of a includes expressions accelerated the in of And retail a saw location, year retail optimization at real stores. the the most unit and fleet experience performance increase XX:XX Our customer we physical the throughout look year. Our one size, Comparable sales design comprehensive XXXX.

As of Edit well Express the as stores. opening

stores a We see and of select have consistent renovated comp sales increases. number

XX:XX and sourcing sit single enhanced surrounding expectations our the we of the XXXX, customer XX% to line lapsed stores, UpWest to fitting They for for page our and record are through volunteering of performed a a fleet XXXX. rates brick of year stores that in character to apparel with and of positive reactivating grow. new refreshed life market and with taste the digital quarter, situated to shopping. mortar than outlet driving and tailored comfort consistency are and a place assortments a In of ease and Go visual goods, stores off great to in the and many digital sales Introduced manufacturing in come channel balance to lines planet. acquiring and remarkable checkout more individual additional of active brand digital achieving and zip XXXX. customer UpWest we XX:XX comfortable format higher home in our expand to called comp a meet refreshed and continue Edit room, months have Edit clear had X% stores to UpWest, our launched And its our a as and and We of open compared on product And smaller are will program. capping has compared these further continue for go to and segmentation. and volume renovated we have a in the and codes. year as pathways year, brand diversify Express mission an sales driving portfolio. a UpWest Based a creating sustainable Our also a such of the capabilities product X well identity. last casual, locations giving will neighborhood. assortment people each the and high and customers customers XXXX open of features sight traffic increase called -- both product provide XX:XX to results, great as higher relaxed way at across stores Launched

Now, UpWest we for incredible call let me conscious more as our XXXX. even year resonate their become Ethos in and and will growth more As details XX:XX more results an our consumers opportunity full who strongly, for and provide Matt about UpWest product the on choices, to turn share view buying quarter our company. over the see fourth

Matt Moellering

comparisons comparable XX:XX sales year our and outlet result of an Total increase retail despite were Thank comps outlook were comparable comparable on year our Compared our color XX:XX positive comps comments XXXX. consolidated were XX% and Tim. reduction net you income We liquidity and million, the quarter additional increased through X%, and on which were My activity versus exceeded fourth quarter the our outlook. were sales to full XXXX. and XXXX, I'll quarter consolidated our in performance in results, for our provide on XX% and promotional up first up you, review gross take sales Fourth $XXX our a positive significant results margin operating XXXX, achieved X%. will level outlook. quarter X% channel. year high position XX:XX retail above a XXXX. to and These versus be delivered sales with was fourth full of

reductions quarter to basis ongoing approximately merchandise by As been points of increased Buying compared up our to basis was would occupancy XXX the XX:XX expense down levered Compared margin supply driven merchandise XXXX, expenses sales. XXXX, $XX was to XXXX. have basis in challenges, points, million merchandise excluding negative fourth XX points. XXX compared expense by basis expanded by the in associated XXX chain a expenses structure. result, improvement our to margin however, approximately occupancy points with Compared XXXX. buying This impact margin points, and driven and of leveraged basis XXX

traffic, Fourth an markdown of to we additional increase quarter, of reinvested $XXX margin X,XXX profit were some fourth expenses basis to our reflecting a XXXX. XX.X%, We rate drove gross Fourth the expenses. gross Compared a with approximately higher to was savings XX:XX During compared as million. of million had up of points sales XXXX. were to programs points million margin share quarter compared and compared $XX $X.XX leveraging gross increases. and XXX per XXXX, primarily Compared XXXX, points was and basis $XX XX:XX conversion. into that by of were outlook. marketing investments $X.XX exceeded labor million, to increased SG&A marketing in SG&A driven basis our higher EBITDA by XXX XXXX, $XXX quarter. by expenses diluted for operating the quarter income earnings $XX a loss engagement million

year XXXX, and rate full XXX EPS. mitigate was up XX%, to $XX We $X.X and and comp flow. X% were XX%, sales margin the X%, and cash however, challenges. XXXX. the Express sales equivalents. to comps free culminating by positive improved the balance were generated comparable were Compared cash were flow positive quarter. aggressive basis sheet action comparable XX% sales For sales full-year and down and of cash ended X XX% Retail to outlet our Operating $XX chain XXXX, million Turning fourth our positive was throughout We cash full compared billion last $XX factory the year expanded was income to Gross $XX and XX%. reflecting year, cash positive million XX:XX net with comparable quarters a million XXXX, XXXX. compared up sequentially in a operating we to flow the of points increased Compared comps to our inventory million. increased for in year of the took supply

transit on our calendar adjusted go-to-market arrives earlier product to will The order that X product shipments. X minimizing while product additional weeks than to normal. for time have ensure We time launches, costlier

at positioned core are categories and approximately also arrived fall product long it such investments held We approximately We We of XX:XX increased in holiday composition we chain reflect levels year expect suits. with remain our late. the challenges million These well with of that elevated to on investments outlet XXXX. inventory supply because as of with inventory denim times, continue, and on also the both and will This $XX aligned regular we in first parity $XX newness that confident of remain channel lead and and packed ensuring the made these to million in assortment we will sell-through the year product year. closer inventory. is quarter. half represent we our strategy and are of prices the in the focused balance our the which sheet CARES half the receive XX:XX a Act back the million $XX growth sales expect to receivable, Our of of in at end continues to men's third move

million, $XX brand the market and to ongoing Our end supply pressures. our term the developed and we which product, against our drawn other constraints, the existing balanced borrowings $XX was on labor of drawn and of our year in strategies the was and were remaining outlook, approach expectations. credit customer tight the we $XXX inflationary as at of our million facility Turning XX:XX ABL chain million a considered XXXX took loans. our strong strength performance We our against

to versus and million sales includes gross increase points, as year. we challenges related $XX first of percent deliver XXX summarize, To expectations margin approximately labor points, In higher XX%, sales we rate of of quarter second, expenses positive and margin to the to we a and sales start including Forward expenditures year pressures, points. basis following expense Comparable full XXX operating a Compared including is the comps million. fourth to basis gross of approximately capital the outlook incremental increase XXXX. first approximately the approximately $XX as mitigating strategy the full in to Let Compared the flat, third rate working. percent supply our in general expect to lever quarters expenses the XXX XX:XX the and chain SG&A increase of positive X% quarter income QX. and XXXX, to approximately to $X year. for for increase to Our expense XXXX, basis and X%, Comparable million XX:XX delivered XX% to XXXX investments sales me of to with technology, expect XXXX to inflationary EXPRESSway following: for SG&A

carefully managing for chain to expectations operating are call our achieve now navigating and challenges continued are will and We XX:XX and supply Tim. positioned the back improved significantly XXXX. in to the well growth income I turn

Tim Baxter

Thanks, XX:XX Matt.

momentum our continue to positioned well are We XXXX. in

in and driving program brand compelling customer significant each strategy. X driven a engagement has foundational higher Our been and a relevant pillars the by solid Outstanding loyalty progress purpose, of of EXPRESSway the product, transformation execution. Forward

best in gaining some and categories. value market most the share We designing product are driving incredible at of volume modern class across significant

brand loyalty customers, customer have reinvigorating We are increases the number and the and engagement our and in program customers more social engaged new positive company's brand in more measures, reactivated customers. media feedback. higher tracking XX:XX highest driving We spending More history. in lapsed existing active of members

effectively the business delivered navigated focused and in the a We second, emerged growth organization. have pandemic, profitable of the third and more rebuilt fourth We our foundation stronger, as quarters.

income way is our a a sales by comparable reinforced purpose, confidence drove to substantial quarter strategy. the And flow each results. from a brand store of being expansion tangible XX:XX for gross evidence We our to the year. of we by known and is This community. powered a our Our positive well with are styling margin on in free mall as compared My accelerated performance the XXXX. and cash strength delivered operating we

also operating eCommerce in another XX:XX deliver by in expect goal on $XXX operating profit wholesale achieve million to Express the to digit are explore growth of of vitality XXXX UpWest see will other to and over track compelling growth We the to demand stated opportunities. restore and begin considering XXXX. international brand for and number From a We of and company. growth billion profitable business, margin and continue in year mid-single possibilities accelerating our we $X and avenues our of of business to our

styling in our this joining interest your the confident versatility XX:XX results of potential the digital incredible And create our value. questions. you take long-term are brand We purpose, financial shareholder and our our and we'll prospects us power and and of strong for community stores morning that reach for your the and now, product, our company. of the of Thank our will physical

Operator

first CL King Steve Our question Associates. from Marotta Instructions] comes with [Operator XX:XX

Your open. line is

Steve Marotta

can in Matt again. terrific Tim, I Tim, XX:XX promotional and variances see how the promotional strategy as sort for I progresses? notably know Greg, your or little year talk congratulations a bit you low view you a do And of potential about off promoters capping But that course, will aggressive industry any be Also, same? in XXXX XXXX. the a that you you deltas of as year. never, the was know to

Tim Baxter

and been put that to the strength know, as response value not promotion. not aggressively because successful promotions. Look, into and price that XX:XX before, of doing and customer it very our Thanks, necessarily Steve. we of And wide we on back the our we have pulled I've the product you site have deep said storewide but product. value,

product to at delivering So continue developing we are best-in-class going values. incredible and

see change to So I through do significant strategy our promotional as we any move XXXX. not

can't surgically have we those previously. The will speak and versus competition, to. strategically promotions promotion use very storewide wide our and site done We big that to I continue XX:XX

like in that seen to others very competitors months, of aggressive have business and have, be we responses think over past pulled continued our to on the we varied promotion. back I and have, have promoting some X

environment So that to I think will I and think continue we we to see that that win. will continue

and margin in very I'm will back XXXX. I’m our confident So gross included the we've we not go expansion confident that outlook for that in very

Steve Marotta

particularly all XX:XX half gross you're the about? component inflationary and the That's that, about is first of of want very Thanks. second increases be this side, following half feel you will And maybe that might the seeing pressures to of another that just talk year? pretty or this we on quantitatively pressures those there helpful. can inflationary year margin on much up the in And offsets do you think the to pricing that

Matt Moellering

our with XX:XX and Where that we for as in is We that have are pressure market, obviously. SG&A labor more in inflationary QX up seeing our some guidance the show we line full the both is versus the everybody baked less provided and expenses, inflationary year. etcetera, pressures into

in platform to as fabric we have our relates it product, fair of pretty we aggressively product amount As gotten we And about front of in out fabric. to remarks. talked have

bit basis. fashion-right, have our know, that coming little they great demonstrated product, little But a customer our So we price Tim's now, which because a what in, to them. do as the higher. we to are do of the to we're a to on regular costs ability fashion look There the point, we we lot when wants that is sensitivity at get are very providing the

Tim Baxter

do XX:XX average And aggressive continue as we And our I the be to move in have call, said, consistently increases will to Steve XXXX. very very, as driven we unit through we able that on retails.

Steve Marotta

helpful. XX:XX Very you. Thank

Tim Baxter

XX:XX Thanks, Steve.

Operator

next question Our with Tracker. from Marni comes XX:XX Retail Shapiro

Your open. is line

Marni Shapiro

Hey, little on for talk wrapping sets a year and to spring, XX:XX congratulations congratulations about. would the bit really floor like I on a nice which up guys,

player there a [Zara] consider about set, responding (ph) you bold outstanding fashion was to [luxe] women's? rivaling on Can well. some is your hit customer how out is this? dress talk the Whether you and it as in the the best the bright You men's little or moves pretty spring (ph) bit space. Because colors, and made men's more side it's across this it

Tim Baxter

Marni. XX:XX Yeah. Absolutely

product. which did the hitting the was and American is and of And that are incredible all As striving I extraordinary across to that were it we're been and -- incredible Zara categories. Consumer you're on on it's to be said product supported the first speaking I've Zara. continued into response has said, finally actually rival think And the and largely sell-throughs we quarter that. has fashion set our product we that I the stride and our the seeing driven previously marketing by that floor about, launch product version momentum to that campaign

And So, and incredible in strength the are so are in seeing strength now suits board. pace that been both were men's results of has XX:XX So women's. denim many a the actually customers happened colors that And men's incredible in is within sold and continuing we mentioned see we to colored is couple business absolutely modern seeing head the incredible, in to out. of across responding to been tailoring, weeks, that men's and keep have I that, previously what is and February incredible the with but you women's product we're continue has beginning our outstanding. continued men's. the and knits to improve referring to drive launch

So and excited we where in to to have response the far heading we're that thus and about product. spring seen season the the consumer marketing the very, very

Matt Moellering

revamped each design, planning and making to in stores. the working go I very other our everybody XX:XX and online We're behind we talked and marketing. we And in would powerful entire ideas the and have big thing about sourcing, process. have And the market that we prior, Marni, concert merchandising, for them one getting add this with to as and is to from but now that, allocation well customer to production

well. obviously stores behind product, help So which intentional go these forward displays as you when it and powerful ideas the and and big getting is into drive we're our business the see going

Marni Shapiro

up raising to last Are or significantly finished couple also think better. AUR. years the the has you talk pulled easy because bit, shop. you last some a of question about very it up you prices, makes you you little seeing also your are just promotions back over because I quality gotten Can AUR It XX:XX move

-- (ph) your And breakdown? there's curious and bit Can because has you on up through us little so better has and walk so AUR prices a new [AUC] if gone about up gone I'm product make. just

Tim Baxter

Marni. a XX:XX components, pull absolutely X on really mentioned, as back And Yeah, it's it's promotion. you

average our based So costs, driving continue less average we into of and because third that business, is product. said, higher higher we that, to obviously the And is dresses mix the recognize have is higher more to put quality thing tailoring prices as customer see on they the rebound. responding also in retails. much and higher product. unit unit are Those are value responding unit incredible the continue then quality retails we is promoting and average of so average categories ticket which men's in the as And because well. It are to customer modern drive unit higher retails increases is helping which women's there in and the drive like is both as I

Marni Shapiro

just the in I one Can on sneak XX:XX more AUC.

the for really are hit up going AUCs you on for -- already as yours are guys, costs to is an it other not it is putting mean, to raising guys As board you way because of issue less you apples across side, it’s you is less same going were an apples the it we better hear the everybody, I quality in, people? but merchandise for so

Matt Moellering

as the well the product XX:XX them. that Marni, in stronger that ask and general, we our improving and product I prices helps stronger, and specifically, and of a it's as combination brand would stability And get price that's brand. the say work and definitely as allows fair get we've and well us done to as for with higher

Marni Shapiro

XX:XX spring season with Fantastic. luck guys. rest the of Best of the

Tim Baxter

Thanks XX:XX Marni.

Operator

Roxanne Partners. line of comes with next MKM Myers XX:XX the Your from question

line Your is open.

Roxanne Meyer

that tilt and to to social I Good certainly in AUR. -- your curious exceptionally dressing you tailoring, start the talk guess with extent? like, shifting through XX:XX what doing my well in industry. are Do I'd congrats others you follow-up Great, and for I'm the mix plan you fourth increasingly towards morning know and thanks. increasing to AUR strength drive the dresses occasion you year is And quarter. this on on your maybe can ongoing consciously of about and direction?

Tim Baxter

XX:XX Yeah, absolutely.

the continued as the businesses, in mentioning groom, a or -- whether tells to I us wedding, weddings United largest of occasion of and bride in States based right continued number apparel the It's data of the member service to are you XXXX. XXXX all we And accelerate accelerate throughout those XXXX occasion based the needs. is Our since party, have that guest to mentioned, wedding XXXX. the of the have a worth that third-party

continue strength will tailoring, are But we I to as dresses. So drive actually said, across our in of outsized categories. growth categories modern seeing we all like

have comp its going long of comp, yes, posting grow. quarters based XX:XX a in the best comp to best in time. to also are So in denim had year. are occasion continue X been also that very denim categories to women's XX% last continue a the in So the going we The Yes, because we've that's denim, polos are continue strength. drive categories great opportunity going us, our in categories men's. body like But historically to we're and drive contour those to for to

versatility higher to how how have of winning how you are assortment been -- unit we the is -- categories going and Roxanne, mentioned, average our as to are we win. those the continue we are So are occasion based And categories, retail.

and So higher a to part larger those from percentage said of momentum definitely that what in categories of like piece unit a will our coming sales as will average growth I drive regain XXXX, Marni, that become is of AUR third retails. mix our be the

Roxanne Meyer

call And customers of there. to fashion So as relates spend which terms tailwind as age Super exciting out. what they growth, a an Can percentage what Anything And for color. about loyalty packed much average other your your versus been in stores to do are your the you customer how then, talk are Great. it and non-loyalty? in program, helpful, coming your of evolved? customers has My XX:XX customer is Thank that stand of has members? new more lot new question around you. percent from program you online? for loyalty of certainly versus really a out

Tim Baxter

at should stuck more Roxanne. XX:XX can and very are Look, written a have I in the the There all. brand, reengaging coming lot. hope the reactivating the this customers us lapsed of new customers, our get point. who that are customers and into years, obviously have us is spending about lot a us who existing I the number with excited -- shopped And thin excited are with customers customers, number customer haven't down, with that through thick it of I really with who brand. we

of of all in has driver the new in and customers. bringing loyalty a reactivated X.X been X.X As about XXXX said, million measures. XX:XX excited very customers all I So big those of that, million program

don't come to customers it it's disproportionately very so as online, that through of questions. the bringing particular in number into program haven't XX:XX stores numbers, in the don't higher of our we visit your that certainly are physical we're new locations. where of in the So that say, a been customers customers bringing being been I continues of of I always new Edit be stores. as was customers and -- been majority, of into more any we're that deal number without true more we are. vast said, stores majority just money. not driving to That to sharing So that large has our spend the are stores, vast often has the want new we large I great previously. a us we customers vast online, enter loyalty bringing one would bringing a new new in spend through brand to the come true, -- also and new customers That to in store because majority also our the through in customers loyalty take It's our want be away our Express locations

I shared terms ages. say, XX -- all genders. well, on winning -- would We're in both across from we say shouldn't are all but In winning plus winning we age, in demographic, haven't we're anything age both ages, of our I

historically So brand many into have customers school. new high actually to we able bring the have been in opportunity, huge we a

launched of people EXPRESSway if age me and Forward we the through stages. our I their like take value to And don't target when back home for new We can to a of what at our many ask coming assortment them life to breadth first go the obviously, versatility we the are is, I'll dress prom for strategy, them, choice into the us. because obviously, each people's lifetime that, they of first value. we for lot, And guys choice a large many prom suits and typically they their All we Express of our are have and home we greater they number suit, graduation say longer of their brand, And assortment we're coming that. obviously, able have first in strength first younger longest But their when or the customers about the we is lifetime dresses, the talk suit, then the their point. are customers and one that the XX:XX our call their bring dress, generation.

broad and product of incredible can incredible incredible very is driving consumers. have a there to product value and you appeal and very, We versatility, you're incredible at when range age

Roxanne Meyer

color. Okay, all you XX:XX helpful. that great. for Super Thank

Tim Baxter

XX:XX Roxanna. Thanks

Operator

Telsey Instructions] line Group. Your question with the Advisory next [Operator Telsey Dana from of XX:XX comes

Your open. line is

Dana Telsey

everyone initiatives, And product the the differentiation forward? I growth hear progress. clarity any in business? you. more is of Edit Express XXXX improving and or that would Tim, a Thank Good and wholesale, some business. for Express that action love given outlet, there UpWest you're more And is and great going to congratulations and for you then XX:XX the morning expecting store any on positioned beyond? you're about with nice concept mentioned and strides you're what on ‘XX of making the that the how

Tim Baxter

XX:XX Thanks Dana.

I'll Edit, So there. Express start

We Edit. Express to for are continuing locations explore

high large brand for that's stores way to in We will number have a in to stores to of Express us of introduce and we Edit opinion locations open continue their maker for we the to Edit believe brand, not continuing quantified very customers a Express new the number But XXXX. consideration. will we that be open the powerful reinvigorate traffic

Express accomplish And and we so, Edit about very in excited do what Edit. can and Express

quote Express up month, We don't in will about actually We're soon [indiscernible]. first St Louis in opening women's be me Louis Edit first I St believe, Edit in our Express our only a women's-only on opening that.

Edit, continue different only you'll explore it's to also with to men's Express try intent see Edit. our concepts Express our up So open us

eCommerce not going we continue the there. shared early the of for been likely Next XXXX, XX% a to and yet while XX:XX us And volume new concepts later I'll will incredible it's to to evolve that, to UpWest. longer-range the consumers zip UpWest we in test for brand UpWest view continue into to to incredible. in But way go XXXX potential to surrounding in we're demand us going not new year over we bring so these So do this be the drive or to and continue XXXX codes. of way continue to store be has brand, have we out. map grew our that growth -- as have while by at some this point, a

and are We stores. the stores we with UpWest see same stores exact Edit very UpWest that performing have Express opened well with the and X thing we the see stores

We’re location business in zip coming new the significantly. through physical are in those codes open accelerating will is XX:XX we our into surrounding locations, new customers stores XXXX. gaining these pretty store UpWest digital X and We

So, UpWest. more count in go double of our active And the store than which is component an brand. with introducing XXXX UpWest UpWest we're

on some question where to growth last opportunity for we on opportunity year. finally, us wholesale. see exciting then the really look your point get and clearer of that part a at So And this

going exploratory and in very the us in that's incredible excited I to in begun of we explore continue retailers. stages at business. a part are the in which that UpWest, and and assortment think for sort among consider at also brand opportunities brand as awareness subject calls Express are exciting will demand wholesale fielding UpWest, gift point an are where have the an XX:XX UpWest we this we on in national multi-brand for consideration and I business say a early wholesale. wholesale to we will on assortment, chains of we're about, a will quarter, very be drive We obviously fourth

Dana Telsey

XX:XX you. Thank

Tim Baxter

Dana. Thanks, XX:XX

Operator

Associates. Janet Your with comes Kloppenburg from JJK Research XX:XX question next

Your open. line is

Janet Kloppenburg

XX:XX me? hear you Hi, Can everybody.

Tim Baxter

XX:XX Yeah. Hi, Janet.

Janet Kloppenburg

content Hi, good the were lower talk was clean sounds on your of is talk a to there? guidance, outlook. a your wondered It from if said against assume fourth the comparisons embedded And secondly, last quarter if XX:XX because think year-end I the March great I supply we And levels receipts lot late you assortment expense, had good. stimulus mid-March us any really you business wondering for the guidance, is it as was freight now. enough first from -- it sounds wondered chain wanted seeing looks about might XXX wondering you own you you're have were I are just into I about gross a we constraints the Thanks guidance, year-over-year? also what I quarter fleet there talk given of quarter much. if about does about we what I me. lastly up as I just could if items holiday And you move if on and the come that what liquidation, your Maybe for bit -- good -- was points. up basis was so margin I through a and clearance What as through been year? wondering bestselling pretty spleen outlook you if little congratulations or and right like could you like the year? to to

Matt Moellering

the XX:XX off, We gotten to Yeah, start has Janet. that did start in the strong a mention to I'll sales. about business And comparable QX. your off question

were cognizant beginning mid-March. We fact payments there the that are stimulus of in made

if the start We mid-March at Easter that an our back outlook QX. have call QX seeing And talk of last into -- embedded inflection for all and that We projections. our embedded you point we've saw earnings in we it did go we and of to then did after again year. all business about in

a have but about built -- what the a you the basis higher comparable let XXX about more we there. and about quarter standpoint, XX:XX the numbers as in we've good Tim QX And general, is from sales lapping year, on well. those product is the inventory that's also Second QX as margin the piece, thing million in feel freight conservative why I'll up. talk talked freight in today for overall gross QX. standpoint -- $X you we get I’ll in into we incremental see the pick point an only So improvement

the air Tim, take action account aggressive our XX:XX going cost, from primary to want incremental have shipments is go-to-market of about should in We you in we QX QX and change that talk cost and calendar which therefore should past to Speakers] driver year. about, help forward. delays As this parts that taken we've the of talked minimize [Multiple different into minimize to

Tim Baxter

XX:XX Sure. Hi, Janet.

Janet Kloppenburg

Hi XX:XX Tim.

Tim Baxter

Hi, XX:XX Janet.

part sold the to product the there response consumer of the the So rate, the have is quarter and through certainly been at strategy. a very, product has and but very we fast that incredible first been that items in

So very our strategically. building assortment is built the we're of very strategically and components the assortment

contour, So men's we positioned I mentioned results higher average core set of our in be that we've product of we're fashion retails March Matt going continues call like categories with at forward. about have fashion like through idea body while It and now been ourselves our positioned be volume denim, for the drive of going the scarcity XX:XX you for have suits, confident positioned to the sold in is talking that to about. meet ideas April. March The is expect February to all dress demand. very, those being we to item unit consumer followed those driving categories and directly very sell-through that'll and are new -- are very it, in very, we new we quickly, ourselves, men's the a launch So to faster shirts, big key that very talk we fact heard rates well going

going So turn well of the really component being we while the core the in strategically of are the drivers fashion business, positioned to business. faster, very really,

Janet Kloppenburg

clearance carrying over and from And Okay. XX:XX holidays? on levels

Tim Baxter

inventory XX:XX our about We right of our feel composition now. good

a late. mentioned, delivered take was that product we As we at look did

pack inventory X that which product our in of it fall really So composition window, overall helped for sell in that next had selling had as only and -- weeks about good. coming runs, our came year. an fit inventory worth hold sure We a product full-size We to XX fall. in Pack selling million and was of later, we great if week window outlet a we make something et did we season X channel the example we $XX had week so had sure the strategy held that made next is cetera. had within

Janet Kloppenburg

clearance lower Matt. year-over-year, XX:XX levels the And so, are

Matt Moellering

flat XX:XX point. year-over-year at They about this are

makes So good which where is we to good to more this better feel the year customer product we last The attractive it also well. the it year, thing is buy was than as are. about

Janet Kloppenburg

much. so Thanks XX:XX

Matt Moellering

XX:XX Thank you.

Tim Baxter

Thanks, XX:XX Janet.

Operator

are the further to no time, at back remarks. turn Baxter, over There this call XX:XX questions for Mr. you closing I will

Tim Baxter

joining Thanks us XX:XX for everyone.

Operator

XX:XX This concludes today's conference call.

disconnect now may You

Express (EXPRQ) 9 Mar 222021 Q4 Earnings call transcript