DESTINATION XL GROUP SERVES UP STRONG SECOND QUARTER RESULTS
Destination XL Group, the largest omni-channel specialty retailer of big and tall men’s apparel, has reported its operating results for the second quarter of fiscal 2016.
Total sales rose 3 percent to $117.9 million from $114.1 million in the second quarter of fiscal 2015. Total comparable sales for the chain increased 2.4 percent; net income for the quarter was $0.2 million, compared with net loss of $1 million in the prior-year quarter; and EBITDA increased to $8.5 million from $6.8 million in the prior-year quarter.
The company’s president and CEO, David Levin, pointed out in a statement that the company’s brand awareness was growing, leading to an increase in the rate of Casual Male customers converting to DXL, and also pointed to a strong business in bottoms. “Our positive second-quarter results reflect the fundamental strength of the DXL transformation, which drove growth in sales and profitability even as uncertainty weighed on consumer spending,” said Levin. “Our belief in the DXL transformation has never been stronger. The DXL customer is buying more and spending more per transaction, while our average sales per square foot continue to climb.”
Levin also said that the company expects sales to slow down in the second half of 2016, but isn’t changing any projections. “Due to the macro headwinds in the current environment, we are taking a more cautious view of sales in the second half of the year. However, we are confident in our ability to leverage our operating model, and we are maintaining our guidance in earnings and EBITDA,” Levin concluded.