Express shares slide 21% premarket after swinging to bigger-than-expected loss, unveiling job cuts

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Express Inc. shares slid 215% in premarket trade Thursday, after the apparel retailer missed earnings estimates for the third quarter, said it is cutting 10% of staff at its corporate headquarters and that it would pursue liquidity measures, hurt by the impact of the coronavirus pandemic. The company had a net loss of $90.3 million, or $1.39 a share, in the quarter to Oct. 31, after a loss of $3.1 million, or 5 cents a share, in the year-earlier period. Excluding the income tax benefit from a CARES Act payment of $8.0 million, the company had an adjusted per-share loss of $1.17, far wider than the FactSet consensus for a loss of 51 cents a share. Sales fell 34% to $322.1 million from $488.5 million, below the $376 million FactSet consensus. Same-store sales tumbled 30%. The company is aiming to realize about $550 million in liquidity benefits, with about $440 million expected in 2020. It is cutting 10% of staff at its corporate office in Columbus, Ohio and is not providing guidance due to the uncertainty caused by the pandemic. Shares have fallen 68% in the year to date, while the S&P 500 has gainede 13.6%.
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