Express Stock

Express, Inc., together with its subsidiaries, operates as a fashion retail company whose business includes an omnichannel operating platform, physical and online stores, and a multi-brand portfolio that includes Express and UpWest.

The Express brand launched with the idea that style, quality and value should all be found in one place. UpWest launched with a purpose to Provide Comfort for People & Planet.

The company’s stores are located primarily in high-traffic shopping malls, lifestyle centers, outlet centers, and street locations, and average approximately 8,200 gross square feet. The company also sells its products through its online store, www.express.com, its mobile app, as well as through franchisees who operate Express locations in Latin America pursuant to franchise agreements.

On December 8, 2022, the company entered into a strategic partnership with WHP Global (WHP), a leading global brand management firm. The mutually transformative strategic partnership advances the company’s omnichannel platform which is expected to drive accelerated, long-term growth through the acquisition and operation of a portfolio of brands. The company and WHP also formed EXP Topco, LLC, an intellectual property joint venture (the Joint Venture), intended to scale the Express brand through new domestic category licensing and international expansion opportunities.

Products

The majority of the company’s apparel designs are created by its in-house design team. Every day is an occasion and the company wants to help its customers dress for it. The company established a design and merchandising philosophy called the Express Edit that supports its brand promise: to edit the best of now for real life versatility. The company is designing best-in-class, modern product at incredible value.

Versatility Adds Value: Create modern-day dressing experience with multiple ways to wear at work, at play, during the day and during the night.

New & Now: Meet the company’s customers’ desire for newness by understanding where fashion is now and looking ahead to where it's going through monthly deliveries in key categories that continue to update a seasonal wardrobe.

Drive Denim: Denim is the foundation of every modern wardrobe. The company completely reinvented its assortments and are delivering premium jeans under $100.

Add an Accessory: Accessories are a fashion entry point and an add-on to an outfit at an opening price point.

The company plans its product assortments and display them in its stores and online in a coordinated manner to encourage its customers to purchase items that can be worn in multiple ways for multiple wearing occasions.

Marketing

The company uses a variety of marketing vehicles designed to acquire new customers, engage with existing customers, increase customer traffic in-store and online, and build brand loyalty. The company seeks to optimize its customer relationship management (CRM) through a number of tactics, such as test and learn programs, circulation and offer models, and greater use of digital marketing.

The company uses a proprietary customer database, together with data analytics, to customize its communications and make targeted offers to customers in an effort to increase customer traffic in-store and online and to increase conversion. During the first quarter of 2021, the company rebranded and relaunched its Express Insider loyalty program and it ended 2022 with the highest number of active loyalty members in the company's history.

The company’s Express Insider members have tremendous lifetime value to Express. This program is a critical factor in gaining additional share of existing customers' spend and bringing new customers into the brand. The company also offers a private-label credit card through an agreement (the Card Agreement) with Comenity Bank under which the bank owns the credit card accounts and Alliance Data Systems Corporation provides services to the company’s private-label credit card customers. All of the company’s proprietary credit cards carry the Express logo.

Distribution

The company utilizes two facilities for the distribution of its product, both of which are owned and operated by third parties. Virtually all of the merchandise sold in the company’s stores and on its website is first received and processed at a central distribution facility in Columbus, Ohio. From there, merchandise allocated to be sold in stores is shipped to its stores and merchandise to be sold online direct-to-consumer is shipped to a distribution facility in Richwood, Kentucky (the Richwood Facility). Merchandise is typically shipped to such stores and to the Richwood Facility via third-party delivery services multiple times per week, thereby providing them with a steady flow of inventory. The third party who operates the Richwood Facility is responsible for fulfilling the majority of the orders placed through the company’s website and shipping the merchandise directly to customers or to stores for pickup, via third-party delivery services.

Intellectual Property

The Express trademark and certain variations thereon, such as Express World Brand, are registered or are subject to pending trademark applications with the United States Patent and Trademark Office and/or with the registries of many foreign countries. In addition, the Express trademarks are used in many registered domain names, including express.com. During the fourth quarter of 2022, the company sold certain intellectual property to the Joint Venture, and received a license back to such intellectual property under the Intellectual Property License Agreement.

Seasonality

The company’s business is seasonal. The company defines its seasons as Spring, which includes the first and second quarters (year ended January 2023); and Fall, which includes the third and fourth quarters (year ended January 28, 2023). Historically, the company has realized a higher portion of its net sales and net income in the Fall season due primarily to the impact of the holiday season. Generally, approximately 45% of its annual net sales occur in the Spring season and 55% occur in the Fall season. Cash needs are typically higher in the third quarter due to inventory-related working capital requirements for early Fall and holiday selling periods. The company’s business is also subject, at certain times, to calendar shifts, which may occur during key selling periods close to holidays, such as Easter, Thanksgiving, and Christmas.

Regulation and Legislation

The company is subject to labor and employment laws and regulations, including minimum wage requirements; intellectual property laws; consumer protection laws and regulations, including those governing advertising and promotions, privacy, and product safety; laws and regulations with respect to the operation of the company’s stores and business generally, including the Foreign Corrupt Practices Act; and laws that apply as a result of being a public company. In addition, the company is subject to the United States customs laws and similar laws of other countries associated with the import and export of merchandise.

History

Express, Inc. was founded in 1980.