- Prachi Singh
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Destination XL Group, Inc. reported total fourth quarter sales of 131.2
million as compared to 135.5 million dollars in the 14-week fourth quarter,
while total sales for the 52-week year were 473.8 million dollars compared
to 468 million dollars for the 53-week prior year. Total comparable sales
increased 3.1 percent for the fourth quarter and 3 percent for the
year.
“We are pleased to report our fifth consecutive quarter of positive
comparable sales growth with a fourth quarter increase of 3.1 percent,”
said the company’s Acting Chief Executive Officer, David Levin in a
statement, adding, “The fourth quarter also marked a major strategic shift
at our Company as we officially launched a wholesale division. Finally, we
are very excited to have recruited Harvey Kanter, the former CEO of Blue
Nile, to serve as our new CEO.”
Net loss for the quarter was 7.2 million dollars or 15 cents per diluted
share compared to 3.3 million dollars or 7 cents per diluted shate in the
prior year’s fourth quarter; while net loss for the year was 13.5
million dollars or 28 cents compared to 18.8 million dollars or 39 cents in
the prior year. Adjusted net loss for the quarter was 0.6 million dollars
compared to 2.7 million dollars in the prior-year quarter; while adjusted
net loss for the year was 3.5 million dollars compared to 12.8
million dollars in the prior year. On a non-GAAP basis, adjusted EBITDA for
the quarter was 6.8 million dollars compared to 5 million dollars in the
prior-year quarter; and adjusted EBITDA for the year was 27.4
million dollars compared to 17.1 million dollars in the prior year.
The company expects to deliver low single-digit comparable sales growth
in its omni-channel retail business and to generate free cash flow in
fiscal 2019. The company and new CEO Kanter believe that increasing
customer base, improving returns on investment in the marketing and digital
initiatives, enhancing in-store and online experience, and managing the
cost structure are essential to achieving a 10 percent EBITDA margin over
time.
In fiscal 2019, the company plans to open two new DXL retail stores,
rebrand 12 Casual Male XL retail stores to DXL retail stores, and rebrand
one Casual Male XL outlet to a DXL outlet store. The company also plans to
close five Casual Male XL retail stores (two of which will be closed in
connection with the opening of the two DXL stores), one DXL store and five
remaining Rochester Clothing stores.
Picture:Facebook/DXL Men’s Apparel
