There are a lot of apparel stocks to keep an eye on
Express, Inc. engages in the provision of apparel brand for both women and men. It offers apparel and accessories for work, casual, jeanswear, and going-out occasions. The company was founded in 1980 and is headquartered in Columbus, OH.
The company operates over 500 retail and factory outlet stores in the United States and Puerto Rico, as well as an online store. Express, Inc. is traded on the NYSE under the symbol EXPR. For more information, please visit www.express.com.
There used to be a margin of safety. As of last year, there was no margin of safety. Their assets are declining.
When examining their cash flow statement it is not good either. Their income from operations has been in decline year after year. With this most recent year being negative 200+ million.
Performance compared with S&P
It constantly underperforms the S&P 500. Until last year where it outperformed by 100+ percent. I am unsure why the performance jumped, the finances and operations do not dictate that massive return.
I used to place a great deal of importance on the leadership of a company. However, after watching more Berkshire Hathaway meetings, it may not matter as much as I thought. It certainly is important, but not in the sense that I was implying. The most important thing for the leadership to do (besides running the enterprise well) is to build new leaders.
Their brand may be strong (I am not a person who frequents malls) but when compared to other brands they are inferior.
They utilize 3rd parties to run their distribution centers. That is not necessarily a bad thing but that is more money going out of the enterprise rather than if they ran their centers themselves.
Malls are in decline and with the rise of online retailers, it is unlikely that Express will be able to succeed.
They have no competitive advantage in the retail space. Their stores are often located in malls that are facing decline. Their cash flow statement depicts a company that is hemorrhaging money. Possible competition can beat them on both experience and price.
Avoid this stock, there are greater apparel stocks. Their financial statements are bad. They are bleeding money and their competition is growing stronger day after day.