Document

EXPRESS, INC. (EXPR)公佈2023年第二季度業績；重申2023年全年展望

2023年第二季度淨銷售額和每股稀釋損失處於先前宣布的展望區間內

重申計劃在2024年實現年化節省12000萬美元的目標，並計劃到2025年實現年化節省20000萬美元的目標

通過新的6500萬美元定期貸款來增強流動性

哥倫布，俄亥俄州 - 2023年9月6日 - 服裝零售商Express, Inc.（紐交所：EXPR）宣布其2023年第二季度的財務結果。這些結果涵蓋了截至2023年7月29日的十三個星期，與截至2022年7月30日的十三個星期進行了比較。

在2023年8月30日，公司實施了1股對20股的股票合併。在公司綜合基本報表中包含的所有普通股份均已根據股票合併進行了回溯調整，導致流通在外股份從7490萬減少至370萬。由於加權平均流通在外的股份減少，公司先前公佈的2023年第二季度每股稀釋虧損預期從$0.50至$0.60調整為$10.00至$12.00。2023年第二季度每股稀釋虧損為$11.79，落在區間內。除了某些重組費用、收購相關和整合成本以及非現金減值損失外，2023年第二季度調整後的每股稀釋虧損為$9.05，優於此區間。

"第二季度淨銷售額和每股稀釋損失均在我們預期範圍內，我們正在穩步增長。在Express品牌中，我們每個月都有顯著的連續改善，這是由我們女性和電子商務業務強勁的趨勢變化驅動的。這股動能一直持續到勞動節，"時任首席執行官Tim Baxter 表示。 "Bonobos的銷售也超出了我們的預期，為我們的整體業務創造了營運收入增量，並定位為EXPR的增長引擎。"

「我們還採取了積極行動來改善底線。由於我們正在進行的整體支出結構全面檢討，我們已在2023年辨認並實施節省8000萬美元，在2024年為12000萬美元，而我們在2025年的承諾增長至20000萬美元。除了這些重大的成本降低外，我們還獲得了6500萬美元的定期貸款，並預期在下半年收到5200萬美元的CARES法案退款，這將增強我們的流動性，並使我們能夠繼續適當地投資進行轉型，」Baxter繼續說道。

"我們正在改造EXPR以創造股東價值，專注於推動長期盈利增長並在我們的Express核心業務中提供正向的自由現金流，利用我們的全通路平台降低成本，並通過我們與WHP Global的戰略合作加快增長和盈利能力，" Baxter總結道。

2023年第二季營運結果

•整體淨銷售額從2022年第二季的46490萬美元下降了6％至43530萬美元，

◦Express和UpWest品牌

▪2022年第二季度，淨銷售額從46490萬減少到39440萬美元，同比下降15％，每個月都有顯著的連續改善，比去年同期下降了14％。

▪可比零售銷售額，包括Express商店和電子商務，在2022年第二季度下降了13%。零售店可比銷售額下降了21%，而電子商務可比銷售額下降了1%。

▪相關門市銷售額較2022年第二季度下降了17%

◦Bonobos品牌

▪淨銷售額為4090萬美元，超出我們的預期

•毛利率佔網銷的比例為23.1%，而去年第二季度為33.1%，下降了約1000個基本點。

◦商品保證金收縮了680個基點，主要是由於增加的促銷活動以及與WHP合資企業相關的310個基點的特許費用。

◦購買和占用開支佔淨銷售額的比例由於可比銷售額下降，解除槓桿約下降320個基點

•銷售、一般及行政（SG&A）費用為1億4610萬美元，佔淨銷售額的33.6%，去年第二季度為1億4330萬美元，佔淨銷售額的30.8%。SG&A費用率的負擔加重主要是由可比銷售額下降所驅動。

•營運虧損為3960萬美元，包括470萬美元的稅前重組費用影響，與Bonobos收購相關和整合成本的460萬美元以及100萬美元的非現金減值費用。這與2022年第二季度的1040萬美元營收相比。

◦根據調整後基礎，不包括某些重組費用、相關併購和整合成本以及減值費用，營運虧損1 為2023年第二季度為2億9300萬美元

•所得稅費60萬美元，有效稅率為(1.4)%，較2022年第二季度的30萬美元，有效稅率為3.5%，有所下降。公司2023年第二季度的有效稅率主要受公司逆向所得稅資產的附加減損記錄的影響。

•淨虧損為4410萬美元，或每股稀釋盈利11.79美元，較2022年第二季的每股稀釋盈利700萬美元，或2.05美元有所下降。

◦根據調整後的基礎，不包括某些重組費用、收購相關及整合成本以及減值費用，淨虧損1 為2023年第二季度每股稀釋後3380萬美元，或每股9.05美元。

•息稅折舊及攤銷前利潤（EBITDA）1 2022年第二季負2,470萬美元，較第二季的2,560萬美元為負。

1 經調整營運利潤（虧損）、經調整凈利潤（虧損）、經調整每股稀釋收益和EBITDA均為非依據通用會計準則之財務指標。請參閱第四檔案 - 附加資訊及其中所包含的調解，以獲得有關這些非依據通用會計準則之財務指標的其他資訊。

資產負債表和現金流量表要點

•現金及現金等價物在2023年第二季結束時總計為5,860萬美元，較2022年第二季結束時的3,770萬美元及2022年第四季結束時的6,560萬美元少。

•2023年第二季結束時，存貨為4.158億美元，其中包括Bonobos存貨5.57億美元，較2022年第二季結束時的3.462億美元增加20％，較2022年第四季結束時增加14％

•2023年第二季結束時，總債務為2.208億美元，相比之下，2022年第二季結束時為2.022億美元，2022年第四季結束時為1.22億美元。

•2023年第二季結束時，公司提供的基於資產的貸款信貸協議（"ABL信貸協議"）下可借出的款項剩餘4750萬美元。

•截至2023年7月29日的二十六週中，運營中使用的淨現金爲6080萬美元，而截至2022年7月30日的二十六週中，運營中使用的淨現金爲6080萬美元。

•截至2023年7月29日的26周內，資本支出總計爲1620萬美元，而截至2022年7月30日的26周內爲1350萬美元。

費用減少措施

The Company is continuing to conduct a comprehensive review of its business model to identify actions that are expected to meaningfully reduce pre-tax costs and enable a more efficient and effective organization and has engaged external advisors to assist in this effort. The Company has a stated goal to deliver over $200 million in annualized savings by 2025 versus 2022.

In May 2023, the Company announced it had identified and implemented $65 million of annualized cost reductions for fiscal 2023 versus fiscal 2022.

In August 2023, the Company announced an additional $15 million of savings for a total of $80 million in annualized cost reductions identified and implemented for fiscal 2023. Also in August 2023, the company announced and implemented a workforce reduction which is expected to generate approximately $30 million in annualized savings. The Company's outlook for the third quarter and full year 2023 includes the pro rata impact of that workforce reduction.

In addition, the Company announced that $120 million in annualized expense reductions for fiscal 2024 versus 2022 had been identified and implemented, which are inclusive of the savings effectuated for fiscal 2023. The Company is also aggressively pursuing at least $50 million in gross margin expansion opportunities by leveraging efficiencies in sourcing, production and the supply chain.

For additional background on the Company's expense reduction initiatives, please read the announcement press release here.

New Term Loan

On September 5, 2023, the Company entered into a definitive loan agreement with ReStore Capital for a $65 million first-in-last-out asset-based term loan, receiving $32.5 million in gross proceeds from the term loan upon entering into the agreement, with the remaining $32.5 million to be received on or before September 13, 2023. The term loan will bear interest at a variable rate based on the Secured Overnight Financing Rate (“SOFR”) plus an applicable margin of 10.00%. The term loan will mature on the earlier of (a)November 26, 2027 and (b) the date of termination of the commitments under the ABL Credit Agreement.

Kirkland & Ellis LLP served as legal advisor to the Company in connection with the loan transaction.

2023 Outlook

The Company’s full year outlook remains unchanged and takes into consideration the persistently challenging macroeconomic and retail apparel environments, including reduced consumer spending and increased price sensitivity in discretionary categories.

Third Quarter 2023

The Company expects the following for the third quarter of 2023 compared to the third quarter of 2022:

•Net sales of approximately $460 million to $490 million, including approximately $50 million in Bonobos net sales

•Gross margin rate to decrease approximately 200 basis points, including approximately 300 basis points of royalty expense related to the license agreement with WHP Global, and a positive approximately 300 basis point benefit from Bonobos

•SG&A expenses as a percent of net sales to leverage approximately 275 basis points, including approximately 150 basis point deleverage from Bonobos

•Net interest expense of $6 million

•Effective tax rate of essentially zero percent

•Diluted loss per share of $5.50 to $7.50

•Consolidated inventory to increase by low-double digits with the addition of Bonobos

Full Year 2023

The Company's full year outlook remains unchanged and it expects the following for the full year of 2023 compared to the full year of 2022:

•Net sales of approximately $1.9 billion to $2.0 billion, including approximately $150 million in Bonobos net sales

•Net interest expense of $20 million

•Effective tax rate of essentially zero percent

•Diluted loss per share of $30.00 to $34.00

•Capital expenditures of approximately $25 million

See Schedule 5 for a discussion of projected real estate activity.

Conference Call Information

A conference call to discuss second quarter 2023 results is scheduled for September 6, 2023 at 8:30 a.m. Eastern Time (ET). Investors and analysts interested in participating in the earnings call are invited to dial (888) 550-5723 approximately ten minutes prior to the start of the call. The conference call will also be webcast live at www.express.com/investor. A telephone replay of this call will be available beginning at 12:00 p.m. ET on September 6, 2023 until 11:59 p.m. ET on September 13, 2023, and can be accessed by dialing (800) 770-2030 and entering the replay pin number 1790468. In addition, an investor presentation of second quarter 2023 results will be available at www.express.com/investor at approximately 7:00 a.m. ET on September 6, 2023.

About EXPR

EXPR is a multi-brand fashion retailer whose portfolio includes Express, Bonobos and UpWest. The Company operates an omnichannel platform as well as physical and online stores. Grounded in a belief that style, quality and value should all be found in one place, Express is a brand with a purpose - We Create Confidence. We Inspire Self-Expression. - powered by a styling community. Bonobos is a menswear brand known for exceptional fit and an innovative retail model. UpWest is an apparel, accessories and home goods brand with a purpose to Provide Comfort for People & Planet.

The Company has 530 Express retail and Express factory outlet stores in the United States and Puerto Rico, the Express.com online store and the Express mobile app; 60 Bonobos Guideshop locations and the Bonobos.com

online store; and 11 UpWest retail stores and the UpWest.com online store. EXPR is traded on the NYSE under the symbol EXPR. For more information about our Company, please visit www.express.com/investor and for more information about our brands, please visit www.express.com, www.bonobos.com or www.upwest.com.

Forward-Looking Statements

Certain statements are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that does not directly relate to any historical or current fact and include, but are not limited to (1) guidance and expectations, including statements regarding expected operating margins, comparable sales, effective tax rates, interest income, net income, diluted earnings per share, cash tax refunds, liquidity, EBITDA, free cash flow, eCommerce demand, and capital expenditures, (2) statements regarding expected store openings, store closures, store conversions, and gross square footage, (3) statements regarding the Company's strategy, plans, and initiatives, including, but not limited to, results expected from such strategy, plans, and initiatives, (4) statements regarding the Company’s workforce reduction and other cost reduction actions, including, but not limited to, charges associated with the workforce reduction and the financial benefits (and the timing of the realization of such benefits) expected from such actions, and (5) the anticipated benefits or effects of the Bonobos acquisition, including statements regarding operating results, financial efficiencies, operational synergies, and our plans, objectives, expectations and intentions related to the acquired assets. You can identify these forward-looking statements by the use of words in the future tense and statements accompanied by words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “scheduled,” “estimates,” “anticipates,” “opportunity,” “leads” or the negative version of these words or other comparable words. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict, and significant contingencies, many of which are beyond the Company's control. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are (1) changes in consumer spending and general economic conditions; (2) the duration and severity of ongoing negative macroeconomic conditions caused by the COVID-19 pandemic and their future impact on our business operations, financial condition, liquidity and cash flow; (3) geopolitical risks, including impacts from the ongoing conflict between Russia and Ukraine and increased tensions between China and Taiwan; (4) our ability to operate our business efficiently, manage capital expenditures and costs, and obtain financing when required; (5) our ability to identify and respond to new and changing fashion trends, customer preferences, and other related factors including selling through inventory at an appropriate price; (6) fluctuations in our sales, results of operations, and cash levels on a seasonal basis and due to a variety of other factors, including our product offerings relative to customer demand, the mix of merchandise we sell, promotions, inventory levels, and sales mix between stores and eCommerce; (7) customer traffic at malls, shopping centers, and at our stores; (8) competition from other retailers; (9) our dependence on a strong brand image; (10) our ability to adapt to changing consumer behavior and develop and maintain a relevant and reliable omni-channel experience for our customers, including our efforts to optimize our omni-channel platform through our partnership with WHP Global; (11) the failure or breach of information systems upon which we rely; (12) our ability to protect customer data from fraud and theft; (13) our dependence upon third parties to manufacture all of our merchandise; (14) changes in the cost of raw materials, labor, and freight; (15) labor shortages and supply chain disruption; (16) our dependence upon key executive management; (17) our ability to execute our growth strategy, EXPRESSway Forward, including, but not limited to, engaging our customers and acquiring new ones, executing with precision to accelerate sales and profitability, creating great product and reinvigorating our brand; (18) our substantial lease obligations; (19) our reliance on third parties to provide us with certain key services for our business; (20) impairment charges on long-lived assets; (21) claims made against us resulting in litigation or changes in laws and regulations applicable to our business; (22) our inability to protect our trademarks or other intellectual property rights which may preclude the use of our trademarks or other intellectual property around the world; (23) restrictions imposed on us under the terms of our current credit facility, including asset based requirements related to inventory levels, ability to make additional borrowings, and restrictions on the ability to effect share repurchases; (24) our inability to maintain compliance with covenants in our current credit facility; (25) changes in tax requirements, results of tax audits, and other factors including timing of tax refund receipts, that may cause fluctuations in our effective tax rate; (26) changes in tariff rates; (27) natural disasters, extreme weather, public health issues, including pandemics, fire, acts of terrorism or war and other events that cause business interruption, (28) risks related to our strategic partnership with WHP Global; (29) our ability to realize the expected strategic and financial benefits of the Bonobos acquisition; (30) our failure to regain compliance with the continued listing requirements of the New York Stock Exchange, or any future failure to meet those requirements; and (31) the financial and other effects of our workforce reduction and other cost reduction actions,

including our inability to realize the benefits from such actions within the anticipated timeframe. These factors should not be construed as exhaustive and should be read in conjunction with the additional information concerning these and other factors in Express, Inc.'s filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

INVESTOR CONTACT

Greg Johnson

VP, Investor Relations

gjohnson@express.com

(614) 474-4890

Schedule 1

Express, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)


	July 29, 2023		January 28, 2023		July 30, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	58,581	$	65,612	$	37,667
Receivables, net	18,222		12,374		11,924
Income tax receivable	2,350		1,462		2,229
Inventories	415,810		365,649		346,229
Prepaid royalty	33,581		59,565		—
Prepaid rent	3,755		7,744		6,321
Other	24,554		21,998		22,628
Total current assets	556,853		534,404		426,998



Right of Use Asset, Net	544,873		505,350		546,259

Property and Equipment	1,013,097		1,019,577		989,088
Less: accumulated depreciation	(888,133)		(886,193)		(856,324)
Property and equipment, net	124,964		133,384		132,764



Non-Current Income Tax Receivable	52,278		52,278		52,278
Equity Method Investment	166,210		166,106		—
Other Assets	6,855		6,803		4,656
TOTAL ASSETS	$	1,452,033	$	1,398,325	$	1,162,955

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term lease liability	$	191,554	$	189,006	$	190,324
Accounts payable	232,353		191,386		166,378
Deferred royalty income	9,219		19,852		—
Deferred revenue	39,505		35,543		31,632
Short-term debt	—		—		4,500

Accrued expenses	123,687		105,803		106,087
Total current liabilities	596,318		541,590		498,921

Long-Term Lease Liability	429,557		406,448		456,661
Long-Term Debt	220,750		122,000		197,673

Other Long-Term Liabilities	19,492		20,718		10,213
Total Liabilities	1,266,117		1,090,756		1,163,468

Commitments and Contingencies

Total Stockholders’ Equity (Deficit)	185,916		307,569		(513)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,452,033	$	1,398,325	$	1,162,955

Schedule 2

Express, Inc.

Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Net Sales	$	435,344	$	464,919	$	818,601	$	915,704
Cost of Goods Sold, Buying and Occupancy Costs	334,975		311,218		654,439		630,503
GROSS PROFIT	100,369		153,701		164,162		285,201
Operating Expenses (Income):
Selling, general, and administrative expenses	146,091		143,278		285,439		284,371
Royalty income	(6,193)		—		(10,633)		—


Other operating expense (income), net	42		11		(958)		(479)
TOTAL OPERATING EXPENSES	139,940		143,289		273,848		283,892

OPERATING (LOSS) INCOME	(39,571)		10,412		(109,686)		1,309

Interest Expense, Net	3,874		3,800		6,817		7,294

Other Income, Net	—		(676)		—		(876)
(LOSS) INCOME BEFORE INCOME TAXES	(43,445)		7,288		(116,503)		(5,109)
Income Tax Expense (Benefit)	611		252		980		(231)
NET (LOSS) INCOME	$	(44,056)	$	7,036	$	(117,483)	$	(4,878)

EARNINGS PER SHARE:
Basic(1)	$	(11.79)	$	2.06	$	(31.62)	$	(1.44)
Diluted(1)	$	(11.79)	$	2.05	$	(31.62)	$	(1.44)

WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic(1)	3,737		3,408		3,715		3,384
Diluted(1)	3,737		3,437		3,715		3,384

1.All share and per share amounts have been retrospectively adjusted to reflect the Company’s 1-for-20 reverse stock split which was effected after the close of market on August 30, 2023.

Schedule 3

Express, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


	Twenty-Six Weeks Ended
	July 29, 2023		July 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(117,483)	$	(4,878)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	28,851		30,088


Loss on disposal of property and equipment	42		21
Impairment of property, equipment and lease assets	996		—





Share-based compensation	(3,810)		5,013


Landlord allowance amortization	(154)		(234)


Changes in operating assets and liabilities:
Receivables, net	(3,777)		(180)
Income tax receivable	(888)		(842)
Prepaid royalty	25,984		—
Inventories	1,132		12,566
Deferred royalty income	(10,633)		—
Accounts payable, deferred revenue, and accrued expenses	28,357		(76,673)
Other assets and liabilities	(9,417)		(25,690)
NET CASH USED IN OPERATING ACTIVITIES	(60,800)		(60,809)

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(16,217)		(13,494)
Acquisition, net of cash acquired	(28,300)		—
Costs related to WHP transaction	(104)		—
NET CASH USED IN INVESTING ACTIVITIES	(44,621)		(13,494)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under the revolving credit facility	205,250		144,000
Repayment of borrowings under the revolving credit facility	(106,500)		(69,000)

Repayment of borrowings under the term loan facility	—		(2,250)






Repurchase of common stock for tax withholding obligations	(360)		(1,956)
NET CASH PROVIDED BY FINANCING ACTIVITIES	98,390		70,794



NET DECREASE IN CASH AND CASH EQUIVALENTS	(7,031)		(3,509)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	65,612		41,176
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	58,581	$	37,667

Schedule 4

Express, Inc.

Supplemental Information - Consolidated Statements of Income

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

The Company supplements the reporting of its financial information determined under United States generally accepted accounting principles (GAAP) with certain non-GAAP financial measures: adjusted operating income (loss), adjusted net income (loss), adjusted diluted earnings per share and EBITDA. Management strongly encourages investors and stockholders to review the Company's financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Adjusted Operating Income (Loss), Adjusted Net Income (Loss) and Adjusted Diluted Earnings Per Share

Adjusted operating income (loss), adjusted net income (loss), and adjusted diluted earnings per share exclude the impact of certain items that the Company does not believe are directly related to its underlying operations.

How These Measures Are Useful

The Company believes that these non-GAAP measures provide additional useful information to assist stockholders in understanding its financial results and assessing its prospects for future performance. Management believes adjusted operating income (loss), adjusted net income (loss), and adjusted diluted earnings per share are important indicators of the Company's business performance because they exclude items that may not be indicative of, or are unrelated to, the Company's underlying operating results, and may provide a better baseline for analyzing trends in the business.

Limitations of the Usefulness of These Measures

Because non-GAAP financial measures are not standardized, adjusted operating income (loss), adjusted net income (loss), and adjusted diluted earnings per share may differ from similarly titled measures used by other companies due to different methods of calculation. These adjusted financial measures should not be considered in isolation or as a substitute for reported operating income (loss), net income (loss), or diluted earnings per share. These non-GAAP financial measures reflect an additional way of viewing the Company's operations that, when viewed together with the GAAP results, provide a more complete understanding of the Company's business. A reconciliation of adjusted operating income (loss), adjusted net income (loss) and adjusted diluted earnings per share to the most directly comparable GAAP measure is set forth below:


	Thirteen Weeks Ended July 29, 2023
(in thousands, except per share amounts)	Operating Loss		Income Tax Impact(a)	Net Loss		Diluted Earnings per Share		Weighted Average Diluted Shares Outstanding(e)
Reported GAAP Measure	$	(39,571)		$	(44,056)	$	(11.79)	3,737
Impact of restructuring(b)	4,658		—	4,658		1.25
Acquisition-related and integration costs(c)	4,595		—	4,595		1.23
Impairment of property, equipment and lease assets(d)	996		—	996		0.27
Adjusted Non-GAAP Measure	$	(29,322)		$	(33,807)	$	(9.05)

a.Items tax effected at the applicable deferred or statutory rate offset by the recording of a non-cash valuation allowance.

b.Represents restructuring charges primarily related to employee severance and benefits of which $2.7 million was recorded in cost of goods sold, buying and occupancy costs and $2.0 million was recorded in selling, general and administrative expenses in the unaudited Consolidated Statements of Income and Comprehensive Income.

c.Represents acquisition-related and integration costs incurred in connection with the acquisition of Bonobos, which were recorded in selling, general and administrative expenses in the unaudited Consolidated Statements of Income and Comprehensive Income.

d.Represents a non-cash impairment charge taken against certain long-lived store related assets and right of use assets, which was recorded in cost of goods sold, buying and occupancy costs in the unaudited Consolidated Statements of Income and Comprehensive Income.

e.Share amount has been retrospectively adjusted to reflect the Company’s 1-for-20 reverse stock split which was effected after the close of market on August 30, 2023.


	Twenty-Six Weeks Ended July 29, 2023
(in thousands, except per share amounts)	Operating Loss		Income Tax Impact(a)	Net Loss		Diluted Earnings per Share		Weighted Average Diluted Shares Outstanding(e)
Reported GAAP Measure	$	(109,686)		$	(117,483)	$	(31.62)	3,715
Impact of restructuring(b)	4,658		—	4,658		1.25
Acquisition-related and integration costs(c)	4,595		—	4,595		1.24
Impairment of property, equipment and lease assets(d)	996		—	996		0.27
Adjusted Non-GAAP Measure	$	(99,437)		$	(107,234)	$	(28.87)

a.Items tax effected at the applicable deferred or statutory rate offset by the recording of a non-cash valuation allowance.

e.Share amount has been retrospectively adjusted to reflect the Company’s 1-for-20 reverse stock split which was effected after the close of market on August 30, 2023.

EBITDA

EBITDA is defined as net income (loss) before interest expense (net of interest income), income tax expense and depreciation and amortization expense.

How This Measure Is Useful

When used in conjunction with GAAP financial measures, EBITDA is a supplemental measure of operating performance that the Company believes is a useful measure to facilitate comparisons to historical performance. EBITDA is used as a performance measure in the Company's long-term executive compensation program for purposes of determining the number of equity awards that are ultimately earned and is also a metric used in our short-term cash incentive compensation plan.

Limitations of the Usefulness of This Measure

Because non-GAAP financial measures are not standardized, EBITDA may differ from similarly titled measures used by other companies due to different methods of calculation. Presentation of EBITDA is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Therefore, this measure may not provide a complete understanding of the Company's performance and should be reviewed in conjunction with the GAAP financial measures. A reconciliation of EBITDA to the most directly comparable GAAP measures, is set forth below:


	Thirteen Weeks Ended				Twenty-Six Weeks Ended
(in thousands)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Net (loss) income	$	(44,056)	$	7,036	$	(117,483)	$	(4,878)
Interest expense, net	3,874		3,800		6,817		7,294
Income tax expense (benefit)	611		252		980		(231)
Depreciation and amortization	14,875		14,477		29,121		29,213
EBITDA (Non-GAAP Measure)	$	(24,696)	$	25,565	$	(80,565)	$	31,398

Schedule 5

Express, Inc.

Real Estate Activity

(Unaudited)



Second Quarter 2023 - Actual			July 29, 2023 - Actual
Company-Operated Stores	Opened	Closed		Store Count	Gross Square Footage
Retail Stores	—	(2)		325
Outlet Stores	—	(1)		194
Express Edit Stores	1	—		11
UpWest Stores	1	(3)		11
Bonobos Guideshops	—	—		60
TOTAL	2	(6)		601	4.6 million

Third Quarter 2023 - Projected			October 28, 2023 - Projected
Company-Operated Stores	Opened	Closed		Store Count	Gross Square Footage
Retail Stores	—	—		325
Outlet Stores	1	(1)		194
Express Edit Stores	—	—		11
UpWest Stores	2	—		13
Bonobos Guideshops	—	—		60
TOTAL	3	(1)		603	4.6 million

Full Year 2023 - Projected			February 3, 2024 - Projected
Company-Operated Stores	Opened	Closed		Store Count	Gross Square Footage
Retail Stores	—	(10)		322
Outlet Stores	1	(5)		194
Express Edit Stores	1	—		11
UpWest Stores	3	(4)		12
Bonobos Guideshops	—	(2)		60
TOTAL	5	(21)		599	4.5 million