Express, Inc. (NYSE: EXPR), a fashion apparel retailer famous for their mall locations, has announced cost cutting moves including the closure of stores.
The company expects to close approximately 100 stores by 2022. This includes nine stores that have already closed in 2019, 31 by the end of January 2020, and an additional 35 by the end of January 2021. The company expects the net impact to sales to be a reduction of $90 million by 2022.
“Our expected results show the third consecutive quarter of sequential improvement in our comp sales trends. I am encouraged that the new initiatives we have put in place are resonating with our customers,” said Tim Baxter, Chief Executive Officer. “Today we are unveiling our new corporate strategy, called The EXPRESSway Forward, and we are focused on profitable growth. My expectation is that we will return to a mid-single-digit operating margin through a combination of low-single-digit comp sales growth, margin expansion and cost reductions. This will of course take some time, but we have a clear path.”
The company has identified $80 million in cost reduction expected to take place over the next three years. Of this, $25 million will be driven by process improvements, inventory optimization and systems implementations associated with its go-to-market transformation. The other $55 million of expense reductions will be driven mainly by workforce restructuring.
Express has been operating their apparel franchise since 1980 and has locations at the North Dartmouth Mall, Providence Place Mall, and Thames Street in Newport.
It is currently unclear which locations will close.