Destination XL posts rise in holiday sales

For the nine week holiday period, Destination XL Group, Inc. said, total sales were 106.6 million dollars compared to 78.4 million dollars for the 9-week holiday sales period ended January 2, 2021 and 103.1 million dollars for the 9-week holiday sales period ended January 4, 2020.

As compared to fiscal 2019, comparable sales in the omni-channel retail business increased 11.4 percent, primarily due to an increase in comparable sales from direct business of 32 percent and an increase in comparable store sales of 3.2 percent. This comparable sales increase of 11.4 percent was partially offset by closed stores and a decrease in wholesale revenues, resulting in the 3.4 percent increase in total sales for the 9-week holiday period as compared to the same period of fiscal 2019.

“For the critical 9-week holiday shopping season we grew sales both in-store and through our direct channels with very few promotions which contributed to higher margins based on lower markdowns. These structural elements are a major factor in driving our expected record performance for the full year in adjusted EBITDA, net income, and free cash flow,” said Harvey Kanter, the company’s president and chief executive officer.

Based on the holiday sales and expectations for the remainder of the fourth quarter, the company is updating its guidance for fiscal 2021 and now expects total sales for fiscal 2021 to be 500 million dollars to 505 million dollars, narrowed from previous guidance of 500 million to 510 million dollars.

The company expects net income of 80 cents to 85 cents per diluted share, increased from previous guidance of 72 cents to 80 cents per diluted share. Adjusted EBITDA is expected to reach 74 to 78 million dollars, increased from previous guidance of 70 to 75 million dollars.


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