10-K - EXP OldCo Winddown, Inc. (0001483510) (Filer)

Tue, Dec 31, 11:02 AM (12 days ago)

EXP OldCo Winddown, Inc. (formerly Express, Inc.) reported a challenging fiscal year ending February 3, 2024, with significant financial strain resulting in a net loss of $208.5 million, or $55.89 per diluted share, compared to a net income of $293.8 million in the previous year. Revenue slightly decreased by 0.5% to $1.85 billion, impacted by a 9% decline in comparable sales. The company faced a gross margin contraction to 21.6% from 28.4%, primarily due to increased promotional activity and rising costs. The firm is currently in Chapter 11 bankruptcy proceedings, having filed on April 22, 2024, with a confirmed reorganization plan on December 17, 2024. A significant asset sale was completed on June 21, 2024, for approximately $172 million, which included the assumption of numerous store leases. The company anticipates no assets available for shareholder distribution, leading to a complete loss for existing equity holders. The strategic partnership with WHP Global and the acquisition of Bonobos were notable developments, but the overall outlook remains uncertain due to ongoing operational wind-down and financial restructuring. Key risks include market volatility and continuing liquidity challenges.