David Kornberg has stepped down as president and chief executive officer of Express Inc., and is being succeeded by Matthew Moellering as interim ceo and interim president.
Express is seeking a permanent ceo and president. Kornberg will remain employed by the company through Feb. 21.
Moellering has served as executive vice president and chief operating officer since September 2011 and will continue in those roles during his tenure as interim ceo and interim president. Moellering has been with Express since 2006. Earlier, he worked at Limited Brands (now known as L Brands), Procter & Gamble, and as an officer in the U.S. Army.
The change in command comes amid recent negative sales trends and a declining stock price.
Last November, Kornberg said Express “entered the holiday season positioned to succeed with increased newness as compared to last year. However, sales to date in November have been below our expectations. The apparel specialty retail environment continues to be highly promotional and our traffic has been challenging.”
At that time, the company revised its guidance downward “to reflect a more cautious stance given recent unexpected sales trends,” Kornberg said. “Our financial position remains sound and we continue to have long-term confidence in our brand and business.”
The company projects fourth-quarter comparable sales will be down 5 to 7 percent versus a negative 1 percent in the year-ago quarter. Net income for the fourth quarter is projected at $8 to $14 million, compared to $27.4 million in the year-ago quarter.
The stock price has been hovering around $5 from a 52-week high of around $11.
In the third quarter of 2018, net income came to $7.97 million compared to $6.03 million in the year-ago period. Total sales increased 2 percent; comparable sales were flat.