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BRIEF-Express Inc close its 17 stores in canada

Published 2017-05-04, 09:15 a/m
© Reuters.  BRIEF-Express Inc close its 17 stores in canada

May 4 (Reuters) - Express Inc EXPR.N :

* Express Inc - Express to close its 17 stores in Canada

* Express Inc - following closings, express will continue to operate 635 stores in U.S.

* Express Inc - expects closures to impact pre-tax profit on its consolidated financial statements in range of $28 to $34 million in 2017

* Express Inc - to facilitate an orderly wind-down of 17 stores, express Canada intends to conduct store closing sales beginning mid-may

* Express Inc- will incur charges of approximately $6 million in Q1 of 2017 and remaining $22 to $28 million of exit costs in Q2 of 2017

* Express inc - determined that express canada will be deconsolidated from express, inc

* Express inc- impact of the exit costs was not included in company's most recently provided guidance

* Express Inc - anticipates tax benefits related to exiting canada in range of $14 to $16 million, of which approximately $7 million is expected in q1 of 2017

* Express Inc - expects to report impact to net income in range of $14 to $18 million in 2017, of which about a $1 million benefit is expected in q1 of 2017

* Express-Challenging canadian retail environment, unfavorable exchange rates prevented co from its meeting expectations

* Express Inc - total after tax cash costs to exit canada are expected to be in a range of $8 to $12 million

* express Inc - Express Canada filed an application for protection under companies' creditors arrangement act with ontario superior court of justice

* Express Inc - "decision to exit canada is consistent with our long-term strategy and will have no impact on our operations in U.S."

* Express-Express Canada seeking appointment of Alvarez & Marsal Canada as monitor in CCAA proceedings to oversee liquidation process for Express Canada Source text for Eikon: ID:nBw3YRS9ga Further company coverage: EXPR.N

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