Express Inc. (NYSE:EXPR) Q3 2020 Earnings Conference Call - Final Transcript
Dec 03, 2020 • 08:30 am ET
Good morning, ladies and gentlemen. Thank you for standing by and welcome to the Express, Inc. Q3 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, Dan Aldridge, VP, IR. Please go ahead.
Thank you, Joey. Good morning and welcome to our call. I'd like to open by reminding you of the Company's safe harbor provisions. Any statements made during this conference call, except those containing historical facts, may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual future results may differ materially from those suggested in forward-looking statements due to a number of risks and uncertainties, all of which are described in the Company's filings with the SEC, including today's press release. Express assumes no obligations to update any forward-looking statements or information except as required by law.
Our comments today will supplement the detailed information provided in both the press release and the investor presentation available on the Company's Investor Relations website. In addition, you can locate a reconciliation of any adjusted results discussed in our comments to amounts reported under GAAP on our website or in our earnings release.
With me today are Tim Baxter, Chief Executive Officer; Perry Pericleous, Chief Financial Officer; and Matt Moellering, President and Chief Operating Officer. I will now turn the call over to Tim.
Thanks, Dan, and good morning, everyone. Throughout 2020, we have advanced the EXPRESSway Forward strategy and taken appropriate actions to manage our liquidity. In the third quarter, we intensified our focus on eCommerce demand. Transactions were up 17%, conversion was up 10%, and we delivered sequential improvement quarter-over-quarter. We shifted gears on product, driving down the high penetrations in occasion-based categories and increasing the proportion of casual, which outpaced our overall performance. We responded to depressed mall traffic by putting a sharp focus on conversion in our stores and saw double-digit percent increases across each of our channels. We completed the first phase of our loyalty program relaunch and added more members than last year who we know spend it 3 times the rate of non-members. We directed -- redirected our marketing dollars to drive brand awareness, resulting in a 77% increase in engagement across our paid social channels. We significantly enhanced our omnichannel capabilities, and our buy online pick-up in store demand grew by a factor of 6 times over the second quarter. We reduced our corporate workforce by an additional 10% to calibrate the organization to our improved operating model as we move into 2021.
Our strategy is working. The foundational pillars of product, brand, customer, and execution are the right ones. Our decisive actions have been the right ones. Our third quarter results are clearly not where I want them to be, but they are a