Fashion retailer Express saw its net loss widen as net sales declined in the third quarter amid reduced consumer spending and increased price sensitivity in discretionary categories.

The company’s net loss widened to $36.8 million as net sales fell 4.6 per cent to $454.1 million in the three months ended October 28, despite the company in September saying the company was “gaining momentum”.

Net sales of the Express and UpWest brands decreased 7 per cent to $402 million and sales of the Bonobos brand totaled $52.1 million. The company’s gross margin fell to 24.1 per cent.

Express said that it has tapped external advisors in the process of a comprehensive review of its business model aimed at reducing pre-tax costs. The company targets to deliver more than $200 million in annualized savings by FY25 versus FY22.

In addition, it expects to realize $80 million of cost reductions for FY23 as compared to the prior year.

Express forecasts net sales of $565 million to $590 million for the fourth quarter and $1.84 billion to $1.87 billion for the full year.