EXPR - Earnings call transcript Q2 2022

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Operator

Good morning. My name is Chris, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Express Second Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. now Vice hand President would to call I Johnson, Greg of Instructions] like the to over [Operator Investor Relations. ahead. go Please

Greg Johnson

of Thank Litigation materially provisions. forward-looking to statements new forward-looking of release. differ those press Any containing uncertainties, statements to whether welcome may statements constitute future a with described and from made during to information, forward-looking you which in Good filings result otherwise, facts Reform results call, call. Private or XXXX. statements the events any today's of including the Chris. Express required except conference and as a risks of Harbor assumes like Actual reminding open meaning except due the may those to Safe within suggested company's historical SEC, Act as the this company's I'd future the Securities no in by number you, obligation by our morning, of all are be update of law. deemed to

today will supplement and in release press available comments investor site. information detailed presentation Web the our the both on provided Investor the Relations Our

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

Tim. Executive I to to call Chief be Chief Financial unless Baxter, otherwise Judd, comparisons will turn and me will Operating Matt to refer are Officer; financial now the remarks and providing Chief Tim today XXXX, Jason We our noted. also prior Moellering, Officer. fiscal over prepared and periods, today President With Officer;

Tim Baxter

generated six and we sales XXXX. the XXX focus XXXX. positive QX, so, margin the basis progressed. months and XXX plus of to EBITDA I on retail in delivered We to gross versus plus points, the increased of quarter an results delivered to consecutive XXXX, expanded compared the macroeconomic XXX%. points of of environment solid. these XX%, comparable you, sales million, basis average And of will unit of difficult to year delivered caused to continue we basis were and flow. Comparable expect were and of Even compared pre-pandemic the uncertain, results as to comparable fundamentals, We but margin control $XX income and We increase controllables, of remain Greg, million. drove of momentum positive dynamic EBITDA XX a posted the in In generated points deliver worsened very environment, we strong compared we business. outlook. our XXXX delivered continued experience We fifth much continued our in Modern major category. and men's Even every long-term men's, tailoring despite mid-single-digit and challenging resurgence. our operating We us this women's versus our growth quarter revenue Thank morning, X% had to X% this commitment good results and its sales in margin. operating and plus expansion levels, XX%, $XX in across operating that first cash our miss everyone. gross conditions

retail unit increased and average up was in were channel our outlet our Our flat, channel X%, comps X%. retail

worsened slowdown macroeconomic mentioned, I as quarter and to into June, a conditions August. that us caused early the As in progressed, experience continued beginning mid

our few negatively This digital with our weeks. more bifurcation differently, businesses also men's behavior and percentage in seen value We have that our saw each women's sales. customer a affected a customer improvement of business some as high impacted we accounts conscious. eCommerce However, becoming in women's past the for the much women's of

foundational EXPRESSway and execution. customer, pillars of each advance Forward strategy; to the continue brand, one four products, our of We

average winning start categories. I'll We continue Men's continued date digits. less and We market of to a tailoring and best more saw one in categories, drove grew value some our most a our and we volume-driving and and retails, price fashion up saw take me of women's. profitable I to offer were significantly. customer value, through to what versatile, our the sales, fashion, in up strength than men's the assortments continued sensitive modern, in in combination comfort results of we and, higher men's. Let significant to Modern is come. suits we've quality, product. its chinos achieved earlier, and in with all unit of at respond you still file. and resurgence, the was as high-quality to XX% customer versatility in what were share double men's The some to across thanks increase were generated and and gain categories, We're referenced comp growth incredible

results. business women's became not likely customer's our and Within modern momentum were both our We oriented. as challenged as of with tailoring Our more value was double as our competitors, which the more women's, mindset jackets skirts continued digits. up much in many impacted promotional

reintroduction pant redesign compelling shirt, our several the have of including and in coming launches We more Portofino women's as continue we iconic product of and advance two styles, September, our to product the pillar. the Editor

us Web styling as editors in twice our content with of posted of one dynamic do amplifying conversion marketing it the in each pillar a had of Many this and pages style Our with our year the Commerce members thousand Building, versatility. our community of the because real-life life. editing engage community our inspire and of hosting Express now activating, purpose We events, Community this content, members is by second ways driving priorities pages. and our and brand at We other program campaigns. comes styling key our and other it create brand. as least have community, online. of XX% by high Nearly created confidence, is sharing is unique appearing most for self-expression, our we to quarter, and the product best one we site on

that a paid lead Zoe, media, million Our impressions live event estimated XX an social across and PR. style editor, Rachel media, generated hosted

Our organic XX% Express, video And million demand across including impressions organic consecutive campaign, fifth a nearly the increase up generated Destination quarter. quarter. XX quarter second over XXX Google last views, brand was all brand platforms, million for digital

reactivated Our making two is members [Ph] Loyalty customer. customers, program year, brought as more million and third year pillar customers. over customers. over its in and re-launch visits QX twice spending last best of has new Since non-loyalty X [last] our program customers, are our loyalty per as X.X much million in

to the We active loyalty with company's number of history. continue members operate our highest in program

pillar fourth is execution. Our

and through operating all test customer model, execution of the the our me describe across the and line and effectiveness processes. You've ultimate heard as systems, of strategies, product, our brand,

We contributed expenses and multichannel have our investments. over Express, successfully our brand, a our rebuilt identified advanced of efficiencies, five to which go-to-market strong successfully and number of financial past product, process, and the quarters. the results our [technical our solid of applied all to reinvigorated operational difficulty] capabilities, We optimized foundation re-imagined our and successfully discipline

efficiently the chain our has disciplined, and the inventory smart, in on as newness. and ongoing the and our and and remaining remains our team industry across agile move carefully unpredictability with line a closer progresses, well-positioned it challenges. solutions. will quarter, to respond to of parity expect expectations, year continue and volatility to while stepped we thoughtful And Our numerous We sales this been macroeconomic while supply retail with is even navigated elevated, the environments recurring which ours theme actually down with

provide on me performance let eCommerce. each with in an Now starting update our channel

committed enable improved and so customers our we drive as demand. store As our remain continue personalization quarter also could To checkout. our to full experience and conversion And business to and the achieving enhance average months, $X buy have pickup to of online we eCommerce we goal that, slowed more eCommerce industry easily many progressed, introduce functionality the billion and in features that higher reported, enhancements inventory. however eCommerce in value. new our long-term order our will coming will We shop in

will across and content execution. advancing multi-channel platforms, We our even offer digital our all keep of more

of continues who shop our users, $XXX of an customers highly app through now mobile more or growing fastest These increase Web than our be customers have to each XX%. million in stores. app make of mobile site digital over spend business. and Our the year X.X We visits one only component more five our engaged

Our so advance to there traffic stores, diversify portfolio the comes X% in-real-life renovations formats the is the is stores make a strategy in in X% a We drove and unit quarter, through we revenue fleet of and achieved years. channels, closed our to here. our our motion. solid The over and completed and comp and And to through investments our results, increase experience, rationalization majority still retail. store posting in continue our XXX among value and tremendous work the retail past several stores fleet highest average comp our nearly optimization new

are which are where customer also of our customer in program loyalty in our retail attraction, the We important engagement, the an have of a fleet. we most stores expand sign-ups, will development, the stores In retention our of re-imagined fleet a testing stores, overall running and increased and approximately pilot program sales, improvements learning outperforming with way higher experience. in are These customer rest into higher customer talent. of total strengthening to stores September, experience an some will to experience. They XX the program this and create elevated important XX we

what will continue learned to retail program. the our the we've quickly experience the pilot of remainder taking from applying parts the most we improve For and by stores, the of effective customer

effect stores upgrade is styling streamed community, and growth and where re-imagine our life. We to differentiation changes the in to events real purpose our contributed are quarter. comp quarter, made were store virtual comes in the social style store customer we comes held many in editors, our stores together Our growing of live creating have for These and where the the our and Express customers time The million experience XXX in views platforms. X the and garnered second to events combined stores to our our format. together, brand community associates a environment our bring events, across and

brand across experience create our and fleet. our continue to visual will environment with align both purpose consistent We a identity renovate stores to and our

have of XX already before the XX We total this update updated a we'll of and year. end

We will and store portfolio location. to also format our continue through diversify

customers of at stores and powerful digital lapsed of to They Our of We open balance in and reach Street a customers, these in customers and what locations the be to our we reactivate visibility new on in the XX six in have than proven Express best to and Beach days surrounding and pilot fleet Boston, Newbury Philadelphia. stores. And in areas. our Rittenhouse the advance higher in in sign sales Express all appealing codes. near brand. Flatiron insiders learning most stores Miami, Manhattan, in high will South are more zip new our in Square and rates up Brickell in acquire are next SoHo plan reflect way These boosts stores Edit these the shopping

in outlet are channel to In and second environment, on resonate delivered and our this X% revenue Our the versatility, a where record quarter, price product fashion, continues comp. sensitive, even more customers inflationary value. positive quality,

delivered people meaningful and planet with of with UpWest brand as growth today's brand UpWest sales for around a quarter clear that digital is XX%. compelling another for Our a and purpose conscious strong consumer. launched comfort

XX. in sales and leveraged our total to expanding also four awareness partnerships exposure. wholesale footprint. stores to the has we digital quarter, continue are bringing the We our to While accelerate, build opened brick-and-mortar UpWest

of retailer strategy that on be for their this collection their and expand of with and sale at will large national their holiday introduce co-designed team a all in will We launch a available website, blankets a stores. with

activities, surpassed purpose with and Turning We Sisters of people. deepen to for Sisters our Dream continue goal between first Big confidence our Each Cheslie Big is by self partnership our we're and we especially and to and young inspire Kryst brand's project with awarded to our proud to Brothers, expression $X our help our donation million fellowship. America. Brothers of Big Big initiatives this aligned do create the Big philanthropic $XXX,XXX

our our second let call over Now you year. the results take and detail through outlook of who half quarter the the for of Jason, the back turn to will me

Jason Judd

Tim, Thank you, morning everyone. and good

and As that achieved even these generated fifth to consecutive you a strategy Tim, and challenging difficult as thanks delivered we brand. positive operating progressed, operating macroeconomic just the quarter comparable flow. heard sales income Despite of conditions from great and results, quarter compared more pre-pandemic levels, became we positive cash our compelling to

to compared results our review me Let outlook. second quarter our

mid-single-digits. delivered comparable comp. expected We positive X% a a sales increase We of

We margin XX XXX expected our to drove approximately gross We basis rate expansion increase basis points. points. to

XXX de-lever we approximately of actualized expenses SG&A points. basis to sales at a XXX expected We basis as points, percent

We in expected the our inventory to remain second elevated quarter.

XX% through XX% up was sales in inventory compared comparable up and improvement flat retail X% sales item channel Net Consolidated outlet Our consolidated meaningful were of $XXX I'll increase were were more X% comps the comps an QX. X%. detail. Total a sales each to XXXX. to million, in which comparable were walk increase from and X% was up XXXX. increased compared

As Tim businesses. quarter, a that affecting we and generated $XXX continued We a e-commerce of in mentioned, a expansion primarily slowdown throughout previously and women's XX of experienced second the of gross gross margin rate mid-June basis points. XX.X% our with million, profit

points and compared XX points points, occupancy by million points. SG&A driven expenses. basis overall by offset beneficially related basis expenses, expanded XXX lower by XXXX. de-levered growth, was $XXX contracted XXX and margin occupancy basis buying but margin by expenses merchandise leveraged were to and Gross the sales basis compensation Our XXX which

XX the lower below came due in our SG&A in our this controlled points outlook. were de-leveraged While more expenses well to was outlook $X costs, total basis than and million

increased in and months gross of million. results XXX unit points, margin six Our expanded positive retail we average XX% basis were of EBITDA were first delivered comparable solid, XX%, sales $XX the year the

a to Our year, reflecting of and XX% We last increase the up significant XX% in increase the unit inventory drivers increase QX. a the discussed compared improvement XX% was quarter. last in versus investment

them Let again summarize me here.

and have supply arrives chain we inventory actions First, that strategic to time. mitigate our taken challenges on ensure

course price impact quality, of underlying were and and of increases product higher there to due investments distortion Second, the categories to inflation. costs our improved a

have maintained unit margin We retail. our through average realized our

this hold Third, it late product we to holiday channel we decision fall. at the expect arriving made and sell appropriate prices through strategic our XXXX to in outlet

parity inventory year. to of that keep move and both are well our sales inventory. ensure to continue closer competition levels the I on expect growth And our will will back action in with to We the half we taking positioned the newness of

was other our $X.XX. $XX were our results, million. per cash We income of diluted operating our flow to share Turning million, drove operating earnings $XX and

of XXXX. quarter to before end we the CARES mentioned at receive receivables reflects Act and sheet the balance $XX expect Our second million the have in

Our our the was we which the product, numerous in end To we've determine apparel balance our brand, that the of challenging term each geopolitical of against our $XXX $XXX our uncertainty was the facility, environment, of unforeseen headwinds the million, those business. chain events backed execution, and as well our loans. were $XX foundational asset the at drawn million and customer remaining and possibility outlook, year-to-date considered could quarter million advancements factors our and other pillars, made four supply existing borrowings the increasingly loan drawn on and of performance, of against retail macroeconomic global impact and ongoing as the

includes outlook and quarter expectations full-year. the revised Our for third the

expenditures store and gross Forward uncertainties the all And approximately strategy The expect higher Comparable to the a SG&A basis it the the On move diluted opportunity share to Even labor full-year of approximately loss in creation to XXX increase light rate important percent income of current the $X.XX, fundamentals. goals. XXX the decreased the basis of half our percent of to is incremental following; retail expenses in per parity points SG&A points, with Compared and dislocation year. to of value approximately of to margin XXX de-lever in inventory approximately quarter XXX aforementioned back company. this me growth sales we points. to expect long-term us gross midst is sales following. and to $X.XX basis capital we to is a million decrease closer grounded of mid-single-digits, margin to de-lever including not sales of in EXPRESSway to strategy and Let market will operating expenses deter this This because our of expenses. guidance, working. rates $XX strategy points, increase sales highlight revised from market technology basis QX. start of the with investments XXXX, the comparable in the approximately mid-single-digits, as positive of Compared third sales as XXXX,

We have challenging navigate years past the transformed times. to and continue over and unpredictable through three successfully

efficient our manner are composition both cost-effective that we newness our controlling comparatively product the are an to example, resonates and customers. well-positioned ensure For on and inventory of we in with

expenses we growth. our seeing quarter, our margin to manage coming the opportunities we in strength Over see while continue our diligence for with as set investing upon women's mid-single-digit both on where sight the will operating a XXXX, we're with we men's, agility while to by improve business building

allowing cash our of value, while our look refine expect debt also unlock net will all our and the our comfort exposure forward discipline to for optimally this I to with expanded position, debt greater you and I capital updating balance of agility investment on to shareholder providing levels. We allocation combination progress.

Tim. to back Now,

Tim Baxter

Thank you, apparel share we've Jason. progress categories. work retail most market Despite meaningful volume-driving the foundational pillars evident. and strategy And across environment in done in made increased macroeconomic the a is our backdrop, challenging corporate the of of four we've significant some our

product comes of community. brand are is with our stores Our power and customers resonating, our relevant, the and have online forged brand styling our compelling, connections through our our purpose is in we is together all it meaningful, the

your take a achieving you long-term we'll operating interest XXXX we highly Thank is in your five strategy our consecutive of large-scale last Our discipline, And Question-and-Answer advancements our made operating meaningful and over and to have growth, and Session successfully three years unprecedented Despite margin transformation working by of company. questions. and we has now navigated uncertain by The remain considerable for a agility. quarters growth. committed focus, headwinds, and EXPRESSway organization profitable the Forward stated with times. in delivered mid-single-digit objective

Operator

with from is first Our Research. Instructions] question SCC Beder Eric [Operator

open. is line Your

Eric Beder

the for thank all you morning there. Good information and

Tim Baxter

Good morning, Eric.

Eric Beder

So, here. few I got a questions

So, did. countering of about do you how aggressively is you competitors plan that you promotional let's going as either to in that lot going the discounting activity, When the promotional look, women's you and you or a not environment, on forward, talk mentioned feel it do were your to as be how responding all?

Jason Judd

Thank about is our where the know, we When start she you're at, what Jason. for. and really product. you, at is is as promotional exceedingly think, she well. we excited I This we she with hope customer cadence, And you our look doing looking is Eric.

seeing in the we're discussed there's As even she's that months, a enthusiastic still seeing time, excited has And in At unveiled and July they we've mindset been the the couple what's and now. same past more bit really product mindset what over about past, first, were about a that coming. August. shifted, in June, late of accelerated value value

has promotional lot in excitement around the little product of that well, so, as And from. she she a well-balanced lot new redline to have bit It to seems with assortment gaining there. so weaving weave enthusiasm of a the there's that in a and of more traction, we be choose can that product opportunity our a

the weeks. that's what in So, see we coming

Tim Baxter

think made site-wide the monitor closely on of competitive going just are second deep have storewide Jason environment noted we not and more the noted, back-half so aggressive to But back much the there. as and we which, progress we I promotions, got eliminating Eric, in going will -- quarter. we continue, are much I and

clearance while new using our drive on targeted very our in product, a really value strategy new continue promotions our to product, be our particularly very our in promotions, We will message. and to on

seeing And in think quarter. you'll third I us what be the so, that's from

Eric Beder

gone of the to in are Editor have with look Portofino holiday product see terms we're product, at if here What to back the And going Great. strategies future the you the pant, fall here? you and in of kind [indiscernible] shirt.

Tim Baxter

anticipate have week, launches this Portofino be women's, I also Editor Well, I we coming is which mentioned, has successful. will The actually pant, as been wildly product the coming wildly the that think that the great week, next reintroduction of of successful. and in reintroduction we shirt happened

core And build so, perspective, that higher businesses and continue levels. significant product to will from drive profit a volume can we categories at core

rebuilding well women's addition categories promise. know. in deliver those men's, of in positioned many you those on in to as categories we franchises are have and fashion continuing to We our And

We with the are those a trend and core so right right programs fashion at the balance key retailer, time. fashion we'll and

gain few categories, where believe So, known from continue categories also months market that I'm over but denim. are in important next gain long continue a heading share and very about particular, optimistic to market we we've in for, we perspective, tailoring product the share will been in to like really

Eric Beder

[Multiple Speakers]…

Jason Judd

the season well coming skirts. double also we and We, on on and a And frankly, were side mentioned, fall have in Tim as there, we used should -- in the a jackets side, more could give the lot digits, have women's up on those for were also women's more tailwind inventory us pieces. as we which

Eric Beder

with And very Contour, continued to I product expand positives. to noticed and it the significant that continues have Body you've

So, going what should be Contour for the back-half forward thinking about Body speakers]… [multiple of --

Tim Baxter

Yes, last Contour that favorite. continues to a great a introduced continues for new was be us Body year, to franchise be customer and

in Body to most in also is we're new that. We Body to exciting -- which believe coming customer Contour, -- really and we launches is extraordinarily is about really the respond exciting leather the customer faux which excited well Contour, going perhaps Contour launches Body I have September, the

has been past with that to that year we newness franchise the new core a product. that is in drive very for powerful continue that So, addition to will

Eric Beder

about When the mentioned what thinking going the kind of be fall, thinking should bit the about August, few that the start going of we forward? weeks, started it's forward? to in I we the that a should back-half, back, be that bounce last know see you end season, a how of of

Tim Baxter

last weeks, you. our direct is the Look, said, seen would in outlook where each I few but I we -- think have I we have improvements as of

this from that takes all into perspective, consideration. We outlook my of are environment macroeconomic approaching our appropriately, and

Eric Beder

Okay.

comps little Where function a that that here, up, [indiscernible] Just you should was we that? a one thinking of went -- were expected, how than pricing, actually it materially be than less is it but margin, less the -- a about expected. two quickly gross or is comps bit you

Jason Judd

Sure.

margin, gross So, to a is with two-pronged story. regard it

our the cost, where As XXX saw did you is there XX contraction is basis we really leverage. done single-digit, product driven buying on by the versus last we of over X% then years, points of leverage to referenced, past year. versus the occupancy in growth able basis optimization work expenses, the on underlying points margin and number estate there about The the flat, real even sales buy-occupancy and LY, pricing where And of to low we're where see sales. of

would On the basis product AURs. to margin, has expenses of margin contraction. the seen we're points been by still the getting had versus points, on great cost overall, traction were XXX on leads XX traction softness the of gross our to But, which margins AUR. outlook, on expand The the product margin if underlying grown strong sales able and little the we that control just expansion more of moderated, the a our even the with have basis

Eric Beder

you once once Inventories, away for of what the seeing is what And we're pieces inventories holiday? and cost terms the of are level remind going as forward here? shipping again, us could packed in of you you other

Tim Baxter

Sure.

coming it we've that year though, in Holiday very the planned about this inventory total use for we're past outlook $XX have from of of of over for quarters. The our are the for stores. about moderately in of chain supply $X million our we seeing, all the within within numbers couple XXXX million planned excited mostly And our last this half was back outlet So, to fall the discussing in about in there seeing at that do over year. what incremental that was $XX we've We've cost. costs that shared outlet underlying can supply channel. pack-and-hold in guidance we've The million our been been fall had costs that chain this

we've are the a challenges experienced, baked So, number quarters had that for inflation and the in of been now. planning we've being or

Eric Beder

half. Okay, I look the guys. in different product Good this back And luck forward seeing to in stores.

Tim Baxter

Eric. you, Thank

Operator

from Tracker. Instructions] Shapiro question next with [Operator The Retail Marni is

open. is line Your

Marni Shapiro

on for thanks everything. the guys, detail Hey, all

Jason Judd

Good morning.

Marni Shapiro

just couple to want here. I a on touch morning. things Good base of

heading curious if bit. was The think was or own your improved as first said thinking And drive this to this office, little that if August thought about I were you I'm sales. doing had were macro, stores was the the you to you at people that something a back

Jason Judd

of think it's difficult combination to combination lot both things. a a I would actually but both, it's decouple of I say of things, It's Marni. these a

each We think I that improvement they last particular work. are in that in kids back seeing do have into gotten And seen I the going are shifting few of mindset weeks. back-to-school, said, we have women of as now to certainly as

also who companies work, back least about many are following are Labor some the going seeing and Day. time We in to hearing actually office at time, part full

actually modern So, of also I was think, Matt we're while it. earlier, we tailoring beginning that us in to enough great see as didn't I that. have think mentioned for in women's the quarter, second

and our key we September, August, also move inventory into in moved as those as So, categories into certainly we've grows. it

a and coming. and the think, the And Editor, that's of which re-launch been also that Portofino about I we've improvement of like I seen, part said, excited so, that we're the

Marni Shapiro

good. stuck out outlet to on business seems me, the Yes, I wanted of that couple to pretty things you think I A just trend. actually, stick

You and down she segments? hand-in-hand fashion she those that trends going and a a was I'm within where outlet between assuming about the the there and conscious in tailoring talked about line trade outlet, difference so Was and about goes on but less to more stores to the the value, full the work? if I'm value the was curious

Jason Judd

Yes actually.

know, in unit known average much where drive to that higher well we're modern be really to became categories more she those in much value for continue and tailoring conscious. We seems retails you and fashion

that the in to our perspective, channel do around points which I I think obviously got impacted the and outlet pricing product. competitive fashion consumer think environment strength we obviously aggressive, more sales saw much in our value more that conscious us as

Marni Shapiro

guys coming customers those And end that in to of what's had mall with and like is you a coming little sale the that the the came I also first -- newest quarter, bit lines just quarter early time as you has the new feel I product you of mean, and never an back your insanely you even along the second are new I stellar guess and fashion? the is through just then, finding craves period quarter for quarter second second which summer, acceptance typically in the period, most product? to the always

Jason Judd

pair were Marni. when Absolutely, the with it, of aggressive think And we that's absolutely. as sale you our as that that you on competitors, many I fact not nailed

Marni Shapiro

Yes.

Jason Judd

both believe responding -- responding she month. to newness as September, know said, the we we've And becomes more continued which improvement expect that as improvement. will you and few that into a Fall, is has I I see I move and driven are contributed to fashion seen much he She into which weeks. as certainly the over that we past August, in

Marni Shapiro

fantastic. like the we are so just on we're Portofino, of one then, piles tell pant, the much. That's on expecting Portofino, -- thus the re-launch, please last not me to Editor that going racks were they the And so back with the and

Jason Judd

cycle, colors to ever, Portofino you're XX same you are much of which the see not is But prints is will see absolutely And iterations walls is exact modern but more Portofinos, a in of iterations, going happening. the and Portofino. and walls of means shirt relevant Walls XX not. in full going Absolutely, more you to not are we what Portofino not see different than the walls and that

Marni Shapiro

see. I couldn't

Jason Judd

more the excited style. to modern But that approach I iconic about we're much think much, that you'll taking be

Marni Shapiro

of last in you half back anticipating AUR growth the the are year? Fantastic. question, And then

Jason Judd

We are.

in growth back We half year. the of are anticipating the AUR

had expand especially point this in we still more year, of just on relevant expect back and Tim the anticipating half promotions maybe than that the definitely to new While we product are to targeted referenced. highly we AUR in Tim's QX,

I our We a composition we said, as made will the we've the clearance to better the improvement it's been value our in past use far our product. drive because so is to than use will message, much clearance clearance of

in message approach the regular just much So, use product. we our be on clearance price and will targeted drive to value in promotions more

Marni Shapiro

and well back margin? AUC you'll in half the will half back still Was in with the year of the it up remind AU's as up drive the me be the or

Jason Judd

Yes.

Marni Shapiro

Good great. much, fantastic. offline. Okay, Thanks the That's so with luck guys. I'll rest all. take

Jason Judd

of End Q&A Great. Thanks, Marni.

Operator

There Mr. over to closing are for remarks. at further call time. questions any no Baxter, turn I'll the you this

Tim Baxter

morning. Have you Thank joining us good day everyone. this a for

Operator

participating. and you Ladies call. gentlemen, today's concludes Thank this for conference

now disconnect. You may

Greg Johnson	Vice President, Investor Relations
Tim Baxter	Chief Executive Officer
Matt Moellering	President and Chief Operating Officer
Jason Judd	Chief Financial Officer
Eric Beder	SCC Research
Marni Shapiro	Retail Tracker

Express (EXPRQ) 31 Aug 222022 Q2 Earnings call transcript