EXPRESS, INC. (NYSE:EXPR) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05 Costs Associated with Exit or Disposal Activities.
expects to incur pre-tax costs of approximately $6 million in the
first quarter of 2017 and $22 to $28 million of pre-tax costs in
the second quarter of 2017. The second quarter costs include an
estimate for the impairment of the Express Canada investment and
an estimate of certain claims that may be asserted against
Express, Inc. or it subsidiaries as a result of such
subsidiary’s guarantee of certain lease obligations of Express
Canada or other claims that may be made against Express, Inc. or
it subsidiaries. Given the early stage of the exit activities,
managements estimates of losses are based on currently available
information and its assessment of the validity of certain claims.
These estimates may change as new information becomes available
and it is reasonably possible that Express, Inc. may incur a
material loss in excess of the estimated amounts. For additional
information regarding expected costs and expected cash costs
refer to Item 7.01, which is hereby incorporated by reference in
this Item 2.05.
hereby incorporated by reference in this Item 2.05.
charges of approximately $6 million in the first quarter of 2017
related to certain Express Canada fixed assets based on expected
store closings in the second quarter of 2017. In addition, in the
second quarter of 2017, Express, Inc. expects to impair its
investment in Express Canada based on the estimated fair value of
Express Canadas net assets. This impairment is expected to result
in a non-cash, pre-tax charge of approximately $11 million.
hereby incorporated by reference in this Item 2.06.
impact pre-tax profit on its consolidated financial statements in
the range of $28 to $34 million in 2017, driven primarily by the
write-down of its investment in Express Canada along with costs
associated with exiting Canada. Express, Inc. expects to incur
charges of approximately $6 million in the first quarter of 2017
and the remaining $22 to $28 million of exit costs in the second
quarter of 2017. In addition, Express, Inc. anticipates tax
benefits of approximately $7 million in the first quarter of 2017
and approximately $7 to $9 million in the second quarter of 2017.
As a result, Express, Inc. expects to report an impact to net
income in the range of $14 to $18 million in 2017, of which
approximately $1 million of benefit is expected in the first
quarter of 2017 and an impact of $15 to $19 million expected in
the second quarter of 2017. Total after tax cash costs to exit
Canada are expected to be in a range of $8 to $12 million. The
impact of these exit costs was not included in the Companys most
recently provided guidance.
the events described above, which is furnished as Exhibit 99.1 to
this Form 8-K, and is incorporated by reference herein.
Canadian operations and the expected financial impacts related
thereto are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
speak only as of the date they are made and are subject to risks
and uncertainties which could cause Express Inc.s actual results
to differ materially. Information concerning these risks and
uncertainties can be found and are described in Item 1A of
Express Inc.s Form 10-K for the fiscal year ended January 28,
2017.
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Exhibit No.
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Description of Exhibit
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99.1
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Press Release
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About EXPRESS, INC. (NYSE:EXPR)
Express, Inc. is a specialty apparel and accessories retailer offering both women’s and men’s merchandise, targeting the 20 to 30 year old customer. The Company offers an assortment of fashionable apparel and accessories to address fashion needs across multiple aspects of lifestyles, including work, casual, jeans wear and going-out occasions. It operates through the operation of its brick-and-mortar retail and outlet stores, e-commerce operations and franchise operations segment. The Company sells its products through its e-commerce Website, www.express.com, and has franchise agreements with franchisees that operate Express locations in Latin America, the Middle East and South Africa. It operates approximately 650 stores across the United States, in Canada and in Puerto Rico, including over 80 factory outlet stores. It products are created by its in-house design team. The Company has a portfolio of products that have brand value, including the Editor pant and 1MX shirt. EXPRESS, INC. (NYSE:EXPR) Recent Trading Information
EXPRESS, INC. (NYSE:EXPR) closed its last trading session 00.00 at 8.88 with 1,480,473 shares trading hands.
