Shares of fashion apparel retailer Express (EXPR) – Get Report plummeted more than 28% Thursday after the company reported a wider-than-expected fiscal third quarter loss while announcing job cuts.
The Columbus, Ohio-based company reported a net loss of $90.3 million, or $1.39 per share, with an adjusted loss of $1.17 per share, for the quarter ending Oct. 31. Analysts were expecting a loss of just 51 cents per share.
Revenue fell 34% to $322.1 million, also falling short of estimates for $376 million.
“We have effectively managed that which was within our control, and as I look ahead, I am optimistic about our ability to deliver improved results and cautious about the continued uncertainty brought about by the current environment,” said CEO Tim Baxter.
Shares of Express dropped 28.5% to $1.13 per share in morning trading Thursday.
The company also announced that it had cut 10% of staff at its corporate office in Columbus and is not providing guidance due to lack of visibility.
The reductions are expected to result in $13 million in benefits in 2021 in addition to the $95 million cash tax benefit the company expects to receive in the second quarter of 2021 as part of the CARES Act.
“Our streamlined go to market process and the implementation of our new inventory planning and management systems have already improved our efficiency and enabled us to operate with greater speed and agility,” said Baxter.