Express Inc., a well-known fashion retailer, faces delisting from the New York Stock Exchange (NYSE) due to its inability to meet the required trading criteria.
The NYSE had notified Express in September that it had breached compliance with its continued listing standards, specifically the requirement for an average closing share price of at least $1.00 over a 30 trading-day period, which is essential for continued listing on the NYSE.
criteria following the delisting notice. During this six-month period, Express will continue to trade under the ticker EXPR, but with an added ".BC" designation to indicate its below-compliance status with the NYSE's continued listing standards.
The company plans to notify the NYSE of its intention to comply with the listing criteria. One potential solution for Express to reach compliance is enacting a reverse stock split, which would be subject to board and stockholder approval.
View this post on Instagram A post shared by EXPRESS (@express) The company's financial performance had been negatively impacted by technology investments and higher store staffing levels, leading to a decline in operating income by 30% to $10.4 million and a net income fall of 34% to $7 million, or $0.10 per share.
Delisting from a stock exchange can have serious consequences for shareholders, as it may render shares virtually worthless. Although delisting does not affect ownership, it becomes difficult to sell the shares in the market or purchase additional ones…
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