Destination XL Group, Inc. Reports Holiday Sales Results

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Destination XL Group, Inc.
Destination XL Group, Inc.

Updates Fiscal Year 2024 Guidance

CANTON, Mass., Jan. 13, 2025 (GLOBE NEWSWIRE) -- Destination XL Group, Inc. (NASDAQ: DXLG), the leading integrated-commerce specialty retailer of Big + Tall men’s clothing and shoes, today announced the following results for the 9-week holiday sales period ended January 4, 2025 (unaudited):

  • Total sales were $94.7 million compared to $102.4 million for the 9-week holiday sales period ended December 28, 2023.

  • Comparable sales for the same 9-week holiday period decreased 7.4%, with comparable sales from stores down 6.2% and the direct business down 10.0%.

Based on the holiday sales results and expectations for the remainder of the fourth quarter, the Company is updating its guidance for fiscal 2024 as follows:

  • Total sales for fiscal 2024 are expected to be $467.0 to $470.0 million, a slight decrease from its previous guidance of $470.0 million.

  • Adjusted EBITDA margin of 4.2% to 4.5%, as compared to its previous guidance of 4.5%. Adjusted EBITDA margin is a non-GAAP financial measure.

“Our sales results for the 9-week holiday period were mostly in line with our expectations given the late Thanksgiving holiday and continued headwinds and challenges regarding consumer spending. Our customers have been very price conscious and, when they shop, they are gravitating toward our more moderate and entry-level price points. We had a slow start to the quarter with November sales down 11.8%, but our customer responded positively to strategic promotions during our Black Friday and Cyber Monday deals which drove improvement in comparable sales to a decline of 4.4% in December,” said Harvey Kanter, President and Chief Executive Officer.

The Company plans to report its actual fourth-quarter and fiscal 2024 financial results on March 20, 2025, when management will also conduct its quarterly conference call to discuss its results. The earnings call will be hosted by Harvey Kanter, President and Chief Executive Officer, and Peter Stratton, Executive Vice President, Chief Financial Officer, and Treasurer.

Non-GAAP Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains a projection for adjusted EBITDA margin for fiscal 2024, a non-GAAP measure.  The presentation of this non-GAAP measure is not in accordance with GAAP and should not be considered superior to, or as a substitute for, net income, or any other measure of performance derived in accordance with GAAP. In addition, not all companies calculate non-GAAP financial measures in the same manner and, accordingly, the non-GAAP measure presented in this release may not be comparable to similar measures used by other companies. The Company believes the inclusion of this non-GAAP measure helps investors gain a better understanding of the Company’s performance, especially when comparing such results to previous periods, and that it is useful as an additional means for investors to evaluate the Company's operating results when reviewed in conjunction with the Company's GAAP financial statements.