Express 2010 Annual Report Download - page 9

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2010 was also a milestone year from a performance perspective.
We saw sales increase 11% to over $1.9 billion, operating
margins increase from 7.4% to 10.5% of sales and operating
income growth of 57%. These results were driven by the
continued focus on our four pillars of growth: Existing Stores,
our new E-Commerce Business, New Store Opportunities and
International Expansion.
In our existing stores, growth came through a more balanced
merchandise assortment focused on meeting all of the lifestyle
needs of our customers. As a result of our evolving Go to Market
Strategy, much of that assortment was proven and tested before
it hit all of our stores, ensuring success of key items and an
improvement in product margins of more than 160 basis points,
but most importantly, led to an enhanced customer shopping
experience as we had the right products at the right time for our
customers. We are also recapturing volume in categories that
have traditionally driven growth in our business such as denim,
accessories and dresses while benefiting from growth in new
categories like footwear, personal care and intimate apparel. We
have improved existing store performance and certainly still have
significant opportunities for improvement from both a topline and
margin perspective.
We owe much of the comp store growth to the consistency in
execution of our front line field Associates. When you walk into
any Express store in the United States, you can expect to find
the same level of quality in product and the same exceptional
customer experience, and for that I am very proud of the field team.
Our E-Commerce business had a record-breaking year in 2010.
E-Commerce sales rose 60%, accounting for more than 8% of
our total sales for the year. We also introduced m.express.com,
Express’ first mobile commerce site and expanded our customer
relationship efforts through enhanced mobile marketing.
We introduced award winning applications for the iPhone,
Android phones, and Blackberry. These applications allow
customers to do mobile shopping, bar code scanning, and
product reviews. They also allow us to do geo-targeted offers
specific to each customer and their store. And while we were
late to this game, we are certainly moving quickly to the front
of the pack. In fact, we were named one of the Top 15 Mobile
Commerce Destinations of 2010 by Mobile Commerce Daily.
This channel has endless opportunities given our customer
demographic and continues to grow on a steep trajectory.
THE EXPRESS GIRL
Spotted at the center of
everything, the Express girl has
a love of life and passion for all
things social. She is effortlessly
sexy, fashion experimental and
forever reinventing herself.
Armed with a smartphone in one
hand an her favorite magazine in
another, she’s up-to-the-minute on
everything. Her style mantra: men,
martinis and manolos make the
best accessories!