DXLG - Destination XL Group narrows full-year guidance to the low-end of the range

2024-01-08 07:44:20 ET

• Destination XL ( NASDAQ: DXLG ) reported total sales of $102.4M compared to $111.7 million for the 9-week holiday sales period ended December 31, 2022.
• Comparable sales for the same 9-week holiday period decreased 8.7%, with comparable sales decreases of 7.6% from stores and 10.9% from the direct business.
• Based on the holiday sales results, the company has narrowed FY23 total sales of $520M to $525M from its previous guidance of $520M to $530M against consensus of $523.68M.
• EPS of $0.39 to $0.43 from its previous guidance of $0.39 to $0.46 per diluted share.
• Adjusted EPS of $0.45 to $0.49, as compared to its previous guidance of $0.45 to $0.52 vs $0.48 consensus.
• Adjusted EBITDA margin of 10.0% to 10.5%, as compared to its previous guidance of 10.0% to 11.0%.
• “Our sales results for the 9-week holiday period were disappointing, but not unexpected.  We started the quarter with a high, single-digit negative comp and that is exactly where we ended the holiday period.  Lower traffic to both the stores and our website was the primary reason for the decline in sales.  Despite the challenges with traffic, we resisted the temptation to stimulate sales by becoming hyper-promotional, which we believe also resulted in softer conversion online. Conversely, staying the course as we continue to rebuild the DXL brand avoided further erosion in gross margin with unnecessary markdowns.  This strategy was made possible because of our clean inventory position and our disciplined approach to inventory management,” said Harvey Kanter, President and Chief Executive Officer.
• The Company plans to report its actual fourth-quarter and fiscal 2023 financial results on March 21, 2024
• Source: Press Release

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