Specialty retail company Express, Inc is restructuring its business in order to drive long-term profitable growth in a move that will impact about 10% of its workforce in its Columbus, Ohio, headquarters and its design studio in New York City.
In its most recent set of financial results, the fashion apparel retailer reported a 5% drop in comparable sales to US$488.5m in the third quarter and a loss of $3.1m compared to an $8m profit a year earlier.
Express said the restructure of its corporate workforce will align the organisation with its “go-forward strategy.”
The field leadership team is also being reorganised to ensure the stores are operating in the most efficient manner while enhancing the level of service offered to Express customers. The company is providing impacted associates with severance pay and benefits continuation.
“When I joined Express, I outlined three priorities: changing the trajectory of the business, developing a corporate strategy, and putting the right team in place,” said CEO Tim Baxter. “We have spent the past six months developing a strategy with the intent to return Express to long-term growth and a mid-single-digit operating margin.
“Today we took the necessary steps to put the right organisation in place to support that strategy. I would like to personally thank all of the impacted associates for their contributions to Express.”