Express Shares Rise on News that Company is Closing 100 Stores by 2022

In an effort to cut costs, clothing retailer Express is planning to shut 100 of its stores by the year 2022. Express shares jumped as much as 25% on the news.

The company announced the news on Wednesday and said the closings are part of its strategy to save $80 million in annually costs over the next three years.

Layoffs are planned but there was no specific number of jobs that will be cut provided.

Express also announced a restructuring of its workforce that will impact roughly 10% of the jobs at Express’ headquarters in Columbus, Ohio, and a design studio in New York.

“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,” CEO Tim Baxter stated. Baxter had spent over two decades with Macy’s before joining Express last summer.

“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 organization in place to support that strategy,” he added.

Express currently operates more than 600 stores, including factory outlet locations, in the U.S. and Puerto Rico.

The company has also announced that it expects adjusted earnings per share to be between 17 cents and 19 cents, with same-store sales expected to drop roughly 3% during the fourth quarter. Analysts polled by Refinitiv were calling for earnings of 19 cents a share.

Disclaimer: We have no position in Express, Inc. (NYSE: EXPR) and have not been compensated for this article.