Destination XL Q4 sales decline amid retail challenges
Destination XL retail store Credits: Calvin L. Leake via Dreamstime Men’s Big + Tall clothing retailer Destination XL Group’s (DXL) sales for the fourth quarter were 119.2 million dollars, down 13.1 percent and comparable sales decreased 8.7 percent. The company’s net income reduced to 2 cents per diluted share versus 10 cents in the previous year. Adjusted EBITDA also declined to 4.2 million dollars. In the first six weeks of the current fiscal year, comparable sales have declined 12.5 percent. However, Destination XL expects gradual improvement throughout the year, anticipating a shift from a low double-digit decline in the first quarter to a single-digit decline in the second quarter, before returning to positive comparable sales in the second half of fiscal 2025. This expected recovery is attributed to strategic initiatives, modest macroeconomic improvements, and more favorable year-over-year comparisons. Harvey Kanter, president and CEO said, “Our sales results reflect a difficult year for the men’s apparel sector where DXL has been challenged by lower traffic levels to our stores and lower conversion online. Men’s retail remains volatile, and we believe the Big + Tall consumer cut back on spending for himself in fiscal 2024,” Regarding potential tariff impacts, Kanter added, “We are monitoring the emerging situation with tariffs, and we have minimal exposure in China, Mexico, and Canada. Collectively, these three countries represent less than 5 percent of our own sourced product, and we expect they will impact gross margin by less than 10 basis points in 2025.” The company’s sales for fiscal 2024 declined to 467 million dollars and comparable sales decreased 10.6 percent versus fiscal 2023. Adjusted net income dropped to 7 cents per diluted share, while adjusted EBITDA decreased to 19.9 million dollars.
Men’s Big + Tall clothing retailer Destination XL Group’s (DXL) sales for the fourth quarter were 119.2 million dollars, down 13.1 percent and comparable sales decreased 8.7 percent. The company’s net income reduced to 2 cents per diluted share versus 10 cents in the previous year. Adjusted EBITDA also declined to 4.2 million dollars.
In the first six weeks of the current fiscal year, comparable sales have declined 12.5 percent. However, Destination XL expects gradual improvement throughout the year, anticipating a shift from a low double-digit decline in the first quarter to a single-digit decline in the second quarter, before returning to positive comparable sales in the second half of fiscal 2025. This expected recovery is attributed to strategic initiatives, modest macroeconomic improvements, and more favorable year-over-year comparisons.
Harvey Kanter, president and CEO said, “Our sales results reflect a difficult year for the men’s apparel sector where DXL has been challenged by lower traffic levels to our stores and lower conversion online. Men’s retail remains volatile, and we believe the Big + Tall consumer cut back on spending for himself in fiscal 2024,”
Regarding potential tariff impacts, Kanter added, “We are monitoring the emerging situation with tariffs, and we have minimal exposure in China, Mexico, and Canada. Collectively, these three countries represent less than 5 percent of our own sourced product, and we expect they will impact gross margin by less than 10 basis points in 2025.”
The company’s sales for fiscal 2024 declined to 467 million dollars and comparable sales decreased 10.6 percent versus fiscal 2023. Adjusted net income dropped to 7 cents per diluted share, while adjusted EBITDA decreased to 19.9 million dollars.
