Express Pushing Late Inventory Forward to Outlets
What to do with late stock arrivals is perhaps the big question of the first half of 2022.
Almost by definition, this is late-season merch. In seasonal categories, just pushing it forward a quarter is akin to a writeoff.
- Express CEO just mentioned on their Q3 earnings call that while they had a 9% stronger inventory position compared to 2 year comparables, they are deciding to pack and hold some of these items and moving them into Express Outlets next year.
What's your plan next year when that late shipment finally arrives for you after being stuck in the port for 4+ extra months?
A few other tidbits from their Yahoo Finance earnings video: - Q3 ecom sales grew 26% y/y - started supply chain adjustments in Spring this year. not much air freight, and so no great expense burden.
The formula for Express is quality, value, fashion. The fact that they serve both men and women makes them unique. Sees an increasing rebound in "occasion wear" - people going out, to parties and events, etc.
Also can I say just how remarkable it is that Yahoo is still around? Founded in 1994.
