Express Shares Drop Post Q1 Results, Completes Bonobos Acquisition
Portfolio Pulse from Akanksha Bakshi
Express, Inc. reported a 15% YoY decline in Q1 FY23 sales to $383.3 million, missing the consensus of $389.43 million. The company completed the joint acquisition of Bonobos with WHP Global from Walmart Inc., which is expected to benefit its operating income and free cash flow in FY23.
May 24, 2023 | 3:21 pm
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Express reported a 15% YoY decline in Q1 FY23 sales and completed the joint acquisition of Bonobos with WHP Global from Walmart, which is expected to benefit its operating income and free cash flow in FY23.
Express reported a decline in sales and a larger loss per share than a year ago, which is likely to negatively impact its stock price in the short term. However, the acquisition of Bonobos may provide some long-term benefits to the company's financial performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Walmart completed the sale of Bonobos to Express and WHP Global, which is expected to benefit Express's operating income and free cash flow in FY23.
The sale of Bonobos to Express and WHP Global is not expected to have a significant short-term impact on Walmart's stock price, as it is a relatively small transaction for the retail giant. However, it may have a positive long-term impact on Express's financial performance.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50