Chief Merchandising Officer steps down from Express company
Malissa Akay, the merchandising honcho at Express, announces her exit from the company. This breakthrough was disclosed in a SEC filing on a blazing Friday. The filing confirmed that Akay's departure was part of Express's strategic expense reduction initiative and was effective immediately.
The filing also revealed that, in accordance with a previously executed severance agreement, Akay will reap her base salary for the next 18 months, along with any incentive pay for the current fiscal year 2023 contingent on hitting performance targets. The agreement includes a yearlong non-compete and non-solicitation clauses.
Should Akay be terminated without cause, she could pocket a severance sum of around $3.3 million, according to another regulatory document. In a communique to Retail Dive, a spokesperson from Express stated that Michael Rengel, a existing team member in the merchandising department since December 2019, will inherit Akay's design duties.
Akay started with Express in September 2019. In her role as executive vice president and chief merchandising officer, she held sway over male and female designs and merchandise, and was in charge of the product and merchandise strategy across Express stores and the express.com platform. Prior to Express, she served as executive vice president and general merchandise manager at Lane Bryant since 2016. Before that, she held global merchandising positions with Ralph Lauren and worked for DFS Group, which is predominantly controlled by LVMH.
Akay's most recent base salary was $750,000, as per an April proxy statement submitted to the SEC. She bagged a market-based $25,000 raise in May 2022, following a stellar performance in 2021 and no prior base salary hikes since her appointment in 2019, according to the filing.
Express reported a first-quarter net loss of $73.4 million and an operating loss of $70.1 million, with negative EBITDA. Comparable store sales droppedby 14% during the quarter. In its first-quarter earnings statement, Express stated that it's pursuing aggressive action to slash expenses and enhance the operational efficiency of its business. In January, the company revealed $40 million in yearly expense reductions compared to 2022, prior to the impact of inflation and since then, it has already identified and implemented an additional $25 million in savings to be realized in 2023.
As Express moves forward, it's committed to discovering substantial additional expense savings, which are anticipated to boost the second half of 2023 and the entire year 2024. The company has enlisted external advisors to assist in examining and identifying both potential margin expansion and further expense reduction opportunities.
Express, in collaboration with WHP Global, a retail investment and brand management company, boasts an intellectual property joint venture. WHP owns 60% and Express owns the remaining 40%. In addition to Express, other brands under the company's portfolio include Bonobos, recently acquired by Express, and Toys R Us. Express runs around 530 Express retail stores and Express Factory Outlet stores in the U.S.; over 60 Bonobos Guideshop locations; and 13 UpWest retail stores. All of the brands also maintain e-commerce platforms.
- Note: This story has been updated to clarify the nature of the business relationship between Express and WHP Global, and to provide information on who will handle some of the chief merchandising officer responsibilities following Akay's departure from the company.
- Malissa Akay's departure from Express was part of a strategic initiative to reduce expenses in the retail industry, as announced in a SEC filing.
- The filing also disclosed that Akay would receive her base salary for the next 18 months, along with any incentive pay for the current fiscal year 2023, contingent on hitting performance targets.
- In the face of rising inflation and financial challenges, Express reported a first-quarter net loss and experiencing a decline in comparable store sales, prompting aggressive action to cut expenses and improve its business operations.
- Express has enlisted external advisors to help identify opportunities for margin expansion and further expense reduction, aiming to boost the second half of 2023 and the entire year 2024.
- In addition to Express, WHP Global, a retail investment and brand management company, owns 60% of an intellectual property joint venture with Express, with brands such as Bonobos, Toys R Us, and several e-commerce platforms under their portfolio.
