Destination XL Group, Inc. Reports Holiday Sales Results
January 09 2023 - 7:00AM
Destination XL Group, Inc. (NASDAQ: DXLG), the leading integrated
commerce retailer of Big + Tall men’s clothing and shoes, today
announced the following results for the 9-week holiday sales period
ended December 31, 2022 (unaudited):
- Total sales were $111.7 million
compared to $106.6 million for the 9-week holiday sales period
ended January 1, 2022.
- Comparable sales for the same 9-week
holiday period increased 7.5%, with a comparable sales increase of
8.9% from stores and 4.9% from the direct business.
Based on the holiday sales and expectations for the remainder of
the fourth quarter, the Company is updating its guidance toward the
upper half of its sales range for fiscal 2022 as follows:
- Total sales for fiscal 2022 are
expected to be $540.0 million to $545.0 million, or the upper half
of its previous guidance of $535.0 million to $545.0 million.
- Adjusted EBITDA margin of 12.5% to
13.5%, unchanged from previous guidance. Adjusted EBITDA margin is
a non-GAAP financial measure1.
“We are pleased with our sales results during this nine-week
holiday period which we believe demonstrates the power of the
brand’s transformational repositioning resonating with Big + Tall
men. Both our stores and our direct business performed well this
holiday season and we were able to drive our sales at regular
price, only deploying promotions to address customer file and
inventory opportunities. Today we are updating our sales guidance
toward the upper half of the range for fiscal 2022,” said Harvey
Kanter, President and Chief Executive Officer.
“I am also pleased to announce that DXL will be launching two
new national merchandise brands that will be exclusive to DXL in
Big + Tall sizes. Life is Good and Original Penguin Golf will be
available both on our website and in selected stores starting in
the Spring 2023 season. At DXL, Big + Tall is all we do and we
trade on the belief that we offer superior fit, assortment, and
experience to him. We believe this leads to a relationship with our
customers that is built on respect, trust, and belonging. We exist
to provide the Big + Tall man with the freedom to choose his own
style, to wear what he wants to wear. Both of these brands will
further enhance our exclusive assortment,” Kanter concluded.
The Company plans to report its actual fourth-quarter and fiscal
2022 financial results on March 16, 2023, when management also will
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.
_______________________1 The Company has not provided guidance
for net income, the most directly comparable GAAP measure to
adjusted EBITDA margin. To do so would require unreasonable efforts
at this time to estimate and quantify, with a reasonable degree of
certainty, various necessary GAAP components, specifically those
related to tax items, that are reconciling items between net income
and EBITDA. However, such tax items could have a material impact on
the amount of the directly comparable net income GAAP measure and
may differ significantly from non-GAAP adjusted EBITDA margin. See
also “Non-GAAP Measures” below.
2023 ICR Conference
Destination XL Group, Inc. will participate in the 2023 ICR
Conference to be held at the JW Marriott Orlando Grande Lakes in
Orlando, Florida on January 9-11, 2023. Management is scheduled to
present on Monday, January 9, 2023. The presentation will be hosted
by Harvey Kanter, President and Chief Executive Officer, and John
Cooney, Senior Vice President, Chief Accounting Officer &
Corporate Controller. An audio of the presentation will be webcast
live at 8:30 a.m. on January 9, 2023 at
https://wsw.com/webcast/icr8/dxlg/1603210 and available for replay
in the Investor Relations section of Destination XL's website at
investor.destinationxl.com.
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
2022, 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, this 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 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 EBITDA is calculated as earnings before interest,
taxes, depreciation and amortization and adjusted for asset
impairment charges. Adjusted EBITDA margin is calculated as
adjusted EBITDA divided by total sales. The Company believes that
providing 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 delivers a Big + Tall shopping experience that
fits -- fits his body, fits his style, fits his life. 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 a digital 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 2022,
including expected sales and adjusted EBITDA margin, and the
expected timing of the release of its financial results for the
fourth quarter and fiscal year 2022. 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 17, 2022, 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: the global COVID-19 pandemic and its impact on the
Company’s results of operations; the impact of rising inflation and
the Russian invasion on Ukraine on the global economy; supply chain
challenges due to ongoing global supply chain disruption; potential
labor shortages; and the Company’s ability to execute on its
digital and store strategy and 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.
Investor Contact: Investor.relations@dxlg.com 603-933-0541
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