Why Express Stock Jumped 25% Wednesday Morning
Shares of Express, Inc. (NYSE: EXPR), a men's and women's fashion retailer, popped 25% higher early Wednesday morning before giving some gains back after the company announced a new strategy focused on profitable growth and also updated fourth-quarter guidance.
Express' strategy addressed multiple key points. Management identified $80 million in annualized cost-reduction opportunities that it expects to drive over the next three years. It said $25 million of those cost reductions will be driven by process improvements and inventory optimization, and $55 million will be generated by workforce restructuring. Management also identified roughly 100 stores to close by 2022, which will result in a $90 million net reduction to sales by 2022 but is also expected to improve EBITDA by $15 million annually over the same time frame.
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Source Fool.com
