Destination XL Group, Inc. Announces Holiday Sales Results and Updates Guidance

Destination XL Group, Inc. (NASDAQ:DXLG), the largest omni-channel specialty retailer of big & tall men’s apparel, today announced that total sales for the 9-week holiday sales period ending December 31, 2016 decreased to $97.9 million as compared to $98.2 million for the same period of the prior year. Comparable sales for the same period decreased 1.4%. Based on the holiday sales results and expectations for the remainder of the fourth quarter, the Company has updated guidance to the low-end of its previously announced full-year range.

David Levin, President and CEO, commented, “The retail apparel environment was challenging over the holiday selling season, but we were pleased with our store results on the east and west coasts. We believe our strategic decision to eliminate a Fall television advertising campaign, while increasing our digital advertising spend, impacted top-line performance across the country, but resulted in a better return on investment in the current environment.”

November/December Fiscal 2016 Highlights
• Total sales for the 9-week period ending December 31, 2016 decreased $0.3 million to $97.9 million compared to the corresponding period of the prior year. Comparable sales decreased 1.4%, with a 2-year stack increase of 0.7%.
• For the same 9-week period, comparable sales for DXL retail stores decreased 1.0%, with a 2-year stack increase of 6.8%.

Levin further commented, “We observed a noticeable migration with our ‘gift-giver’ this season to online shopping. Our Direct business performed well, but was not enough to offset the decline in store sales. We are managing our expenses very well, which we expect will allow us to meet the low-end of our sales, EBITDA and earnings guidance for the year. Our inventory levels are in excellent shape and we believe we are well-positioned as we enter the Spring selling season.”

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