Express Inc吧
  • 最近访问:
发表于 2018-07-12 14:40:53 股吧网页版
Takeaways from Road Trip with Management 查看PDF原文


  Express Inc(EXPR)

  Earlier this week, we hosted Express management including CFO Perry Pericleousand Vice President, Investor Relations Mark Rupe for investor meetings in theMidwest. We walked away with a greater appreciation of the company’s rapidlygrowing digital business, real estate flexibility, strong balance sheet, and steppedup efforts on the merchandise and marketing front. With 1Q18 representingEXPR's first positive comp in 2 years, a supportive apparel backdrop QTD, andcheap relative valuation (on EV/EBITDA) we are tempted to be more constructiveof the stock, however, numerous headwinds still persist including a negativemargin mix shift with in-store traffic still down, promotional activity skewing upYOY, a high hurdle to leverage SG&A (MSD-HSD SSS) due to wage inflation,increased marketing spend, and incentive comp (post two years without it), andinitiatives such as BOPIS and newness in the assortment like men’s performanceshirts still in the very early innings. We reiterate our Hold rating and $10 PT.

  Turning the Corner Post Prior Challenges?

  2015 was a very solid year for EXPR with strong top- and bottom-line growth,however, trends deteriorated in 2016 post a few strategic missteps, including apullback in promotional activity (as peers deepened activity), a ~20% increase inchoice count (that reduced depth of inventory of key SKUs), and marketing thatfocused on a younger customer. These challenges have largely been correctedand 1Q18 represented the company’s first positive comp (up 1%) in two years.Comp drivers going forward include newness in assortment such as men’sperformance shirts and women’s denim perfect jeans, the rollout of expandedsizes for men’s and women’s online and in 130 stores, increased transactionsdriven by the revamped NEXT loyalty program, continued strength in men’s suitson the back of the highly successful NBA marketing campaign, positive trends inoutlet doors, and robust online growth.

  More Than Catching Up Online

[点击查看PDF原文] 今日最新研究报告

作者:您目前是匿名发表   登录 | 5秒注册 作者:,欢迎留言 退出发表新主题


信息网络传播视听节目许可证:0908328号 经营证券期货业务许可证编号:913101046312860336 违法和不良信息举报:021-34289898 举报邮箱
沪ICP证:沪B2-20070217 网站备案号:沪ICP备05006054号-11 沪公网安备 31010402000120号 版权所有:东方财富网 意见与建议:021-54509966/021-24099099