Express 2011 Annual Report Download - page 5

Turning to our four pillars of growth, we continued to generate positive comps in existing
stores while increasing margins at the same time. This resulted in improved sales
productivity and profitability. Our sales reflected balanced growth across categories
for men and women, demonstrating once again our fashion authority across our end
uses. Express was one of the first to show colored denim for women and we further
established Express as a key destination for men’s suiting within our demographic as
evidenced by the success of the iconic multi-fit 1MX shirt and the sale of over one
million ties in 2011. We also expanded emerging product categories such as shoes
and personal care, while entering new product categories like men’s watches with
strong results.
We expanded our store base, opening a total of twenty-seven new stores in the United
States and Canada ending the year with 609 locations and approximately 5.3 million
square feet in operation. Our entrance into Canada – with six stores at the close of
2011 – has been embraced by new customers throughout Toronto and Calgary. We
look forward to furthering expansion across North America in 2012 with plans to open
approximately 30 new stores in the new format including two flagship locations, one
each in San Francisco and New York City.
We reached a milestone in e-commerce sales which grew 39% in 2011 to $205 million.
After only three full years in e-commerce, we believe this channel has significant
growth potential ahead. In August we expanded international shipping to more than
60 countries. Express was also one of the first retailers to embrace “f-commerce” on
Facebook. Not only can our customers “like” products and share with their friends,
they can purchase directly from our Facebook page or Express’ current digital catalog.
Digital commerce is a key driver of enabling a multi-channel customer to shop and
engage with Express in whatever way they choose.
In 2011, we focused on developing our international strategy to capitalize on what we
see as at least a $600 million long term revenue opportunity. We believe that fashion
has no boundaries for the 20 to 30 year old demographic. Our fashion is internationally
inspired and influenced by our designers and merchants who hail from all over the world
and undertake an extensive travel agenda associated with our Go-to-Market strategy.
We serve a diverse customer base in our U.S. stores and, as evidenced by our tourist
and border locations, we are already serving international customers successfully.
We have studied the international marketplace extensively and believe that our
three-pronged approach that includes company-owned stores, joint venture
relationships and franchise arrangements will allow us to aggressively penetrate
key markets while successfully managing risk.
Our organization continues to be led by a strong management team with industry
expertise and a history of consistent execution. As an organization of more than 18,000
strong we benefit from a solid financial position that will allow us to take advantage of
the growth opportunities in front of us as we focus on our four pillars of growth.
In closing, 2011 was another strong, consistent year for us as we marked the first full
fiscal year as a public company. We have not significantly changed our strategies
for the past four years because they are working and so we continue to focus on
exceptional execution. I’d like to extend my thanks to our entire team at Express, our
loyal customers as well as our stockholders for their continued trust and confidence
in Express.
Most sincerely,
Michael Weiss
Chairman, President & CEO