Destination XL reports Q4 comparable sale growth of 3.1 percent

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