Destination XL Group, Inc. Reports Holiday Sales Results
08 Gennaio 2024 - 1:00PM
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 December 30, 2023 (unaudited):
- Total sales were $102.4 million 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 and expectations for the
remainder of the fourth quarter, the Company is narrowing its
guidance for fiscal 2023 as follows:
- Total sales for fiscal 2023 are expected to be $520.0 million
to $525.0 million, or the lower half of its previous guidance of
$520.0 million to $530.0 million.
- Net income of $0.39 to $0.43 per diluted share, as compared to
its previous guidance of $0.39 to $0.46 per diluted share. Adjusted
net income of $0.45 to $0.49 per diluted share, as compared to its
previous guidance of $0.45 to $0.52 per diluted share. Adjusted net
income is a non-GAAP measure.
- Adjusted EBITDA margin of 10.0% to 10.5%, as compared to its
previous guidance of 10.0% to 11.0%. Adjusted EBITDA margin is a
non-GAAP financial measure.
“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, 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 net income, adjusted net
income per share and adjusted EBITDA margin for fiscal 2023,
non-GAAP measures. The presentation of these non-GAAP
measures 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 measures
presented in this release may not be comparable to similar measures
used by other companies. The Company believes the inclusion of
these non-GAAP measures help 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.
Adjusted net income and adjusted net income per diluted share
are calculated by excluding any asset impairment charge (gain) and
the loss from the termination of the retirement plans, subtracting
the actual income tax provision (benefit) and applying an effective
tax rate of 27%. The Company believes that this comparability
is useful in comparing the actual results period to period.
Adjusted net income per diluted share is then calculated by
dividing the adjusted net income by the weighted average shares
outstanding for the respective period, on a diluted
basis.
Adjusted EBITDA is calculated as earnings before interest,
taxes, depreciation and amortization and adjusted for the loss from
the termination of the retirement plans and asset impairment charge
(gain), if any. Adjusted EBITDA margin is calculated as adjusted
EBITDA divided by total sales. The Company believes that providing
adjusted EBITDA and adjusted EBITDA margin is useful to investors
to evaluate the Company’s performance and are key metrics to
measure profitability and economic productivity.
About Destination XL Group, Inc.
Destination XL Group, Inc. is the leading retailer of Men’s Big
+ Tall apparel that provides the Big + Tall man the freedom to
choose his own style. Subsidiaries of Destination XL Group, Inc.
operate DXL Big + Tall retail and outlet stores and Casual Male XL
retail and outlet stores throughout the United States, and an
e-commerce website, DXL.COM, and mobile app, which offer a
multi-channel solution similar to the DXL store experience with the
most extensive selection of online products available anywhere for
Big + Tall men. The Company is headquartered in Canton,
Massachusetts, and its common stock is listed on the Nasdaq Global
Market under the symbol "DXLG." For more information, please visit
the Company's investor relations website:
https://investor.dxl.com.
Forward-Looking Statements
Certain statements and information contained in this press
release constitute forward-looking statements under the federal
securities laws, including statements regarding our guidance for
fiscal 2023, including expected sales, net income and adjusted
EBITDA margin, and the expected timing of the release of its
financial results for the fourth quarter and fiscal year 2023. The
discussion of forward-looking information requires management of
the Company to make certain estimates and assumptions regarding the
Company's strategic direction and the effect of such plans on the
Company's financial results. The Company's actual results and the
implementation of its plans and operations may differ materially
from forward-looking statements made by the Company. The Company
encourages readers of forward-looking information concerning the
Company to refer to its filings with the Securities and Exchange
Commission, including without limitation, its Annual Report on Form
10-K filed on March 16, 2023, its Quarterly Reports on Form 10-Q
and other filings with the Securities and Exchange Commission that
set forth certain risks and uncertainties that may have an impact
on future results and direction of the Company, including risks
relating to: changes in consumer spending in response to economic
factors; the impact of rising inflation; the Israel-Hamas conflict
and the ongoing Russian invasion of Ukraine on the global economy;
potential labor shortages; and the Company’s ability to execute on
its digital and store strategies, ability to grow its market share,
predict customer tastes and fashion trends, forecast sales growth
trends and compete successfully in the United States men’s big and
tall apparel market.
Forward-looking statements contained in this press release speak
only as of the date of this release. Subsequent events or
circumstances occurring after such date may render these statements
incomplete or out of date. The Company undertakes no obligation and
expressly disclaims any duty to update such statements occurring
after such date may render these statements incomplete or out of
date. The Company undertakes no obligation and expressly disclaims
any duty to update such statements.
CERTAIN COLUMNS IN THE FOLLOWING TABLE MAY NOT
FOOT DUE TO ROUNDING
|
FISCAL 2023 FORECAST |
GAAP TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
RECONCILIATION |
GAAP to NON-GAAP ADJUSTED NET INCOME AND ADJUSTED NET
INCOME PER SHARE RECONCILIATION |
(unaudited) |
|
|
|
|
|
|
|
|
|
Projected |
|
|
|
|
|
|
Fiscal 2023 |
|
|
|
|
(in millions, except per share
data and percentages) |
|
|
|
|
per diluted share |
|
|
|
|
|
|
|
|
Net income (GAAP
basis) |
|
$25.2 - $27.6 |
|
|
|
|
Add back: |
|
|
|
|
|
|
Loss from termination of
retirement plans |
|
5.7 |
|
|
|
|
Provision for income
taxes |
|
9.3 - 10.2 |
|
|
|
|
Interest income, net |
|
(2.0 |
) |
|
|
|
Depreciation and
amortization |
|
13.7 |
|
|
|
|
Adjusted EBITDA
(non-GAAP basis) |
|
$51.9- $55.2 |
|
|
|
|
|
|
|
|
|
|
|
Sales (53-week basis) |
|
$520.0 - $525.0 |
|
|
|
|
Adjusted EBITDA margin
as a percentage of sales (non-GAAP basis) |
|
10.0%-10.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP
basis) |
|
$25.2 - $27.6 |
|
|
$0.39 -$0.43 |
|
Add back: |
|
|
|
|
|
|
Loss from termination of retirement plans, tax effected |
|
4.2 |
|
|
|
0.06 |
|
Adjusted net income
(non-GAAP basis) |
|
$29.4 - $31.7 |
|
|
$0.45-$0.49 |
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding - diluted (1) |
|
64.5 |
|
|
|
|
(1) No share
repurchases have been assumed for the fourth quarter of fiscal
2023 |
|
|
|
Investor Contact: Investor.relations@dxlg.com 603-933-0541
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