From GlobeNewswire: 2024-11-22 07:00:00

Destination XL Group, Inc. reported a decrease in total sales to $107.5 million for the third quarter of fiscal 2024, with a net loss of $(0.03) per diluted share. Adjusted EBITDA was $1.0 million, or 1.0% of sales. The company repurchased 3.6 million shares of common stock for $10.2 million during the quarter.

Despite consumer spending challenges, DXL remains focused on achieving profitable sales and generating free cash flow. The company is cautious about its strategic initiatives due to the current macroenvironment. DXL has paused its brand campaign, slowed new store openings, and shifted marketing efforts towards productive channels.

DXL launched new brand advertising in select markets, but paused the campaign due to market conditions. The company opened four new stores in the third quarter and plans to open eight stores in fiscal 2025. DXL is transitioning to a new eCommerce platform and expanded its merchandise assortment on Nordstrom’s digital marketplace.

For the third quarter, total sales decreased to $107.5 million, with a gross margin rate of 45.1%. SG&A expenses were 44.1% of sales, with marketing costs at 5.7%. DXL’s effective tax rate was 9.2%. Net loss for the quarter was $1.8 million, or $(0.03) per diluted share.

Cash flow from operations for the first nine months of fiscal 2024 was $12.5 million, with free cash flow at $(7.0) million. The company’s financial outlook for fiscal 2024 includes sales at the low end of guidance, adjusted EBITDA margin at 4.5%, and a comparable sales decrease of approximately 10%.

DXL will hold a conference call on November 22, 2024, to discuss its financial results. Investors can participate via webcast or by joining a listen-only session. The company’s forward-looking statements highlight the impact of consumer spending trends and strategic initiatives on future results.



Read more at GlobeNewswire:: Destination XL Group, Inc. Reports Third Quarter Financial