The New York-based firm disclosed in a regulatory filing that it has amassed an almost 10% stake in Express for slightly more than $106 million.
Sycamore has a track record of similar acquisitions. It completed a $2.2 billion purchase of the Jones Group, which owns Nine West and Anne Klein, in April. The firm bought Hot Topic for approximately $530 million in 2013 and purchased Talbots for $390 million in 2012. It also gave $150 million in financing to Aeropostale (ARO) in March.
The stock was up 20.66% to $16.35 at 12:37 p.m.
Separately, TheStreet Ratings team rates EXPRESS INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPRESS INC (EXPR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: