Destination XL reports holiday sales increase, updates guidance
Canton, Massachusetts-based big and tall men’s clothing retailer Destination XL Group, Inc. reported growing holiday sales on Monday.
Over the 9-week holiday sales period ended January 1, 2022, the company reported total sales of $106.6 million, up from $78.4 million reported during the same period in 2021 and $103.1 million for the same period in 2020.
Comparable sales in the company’s omni-channel retail business for the same 9-week holiday period increased 11.4 percent, primarily due to an increase in comparable sales from its direct business of 32 percent and an increase in comparable store sales of 3.2 percent, partially offset by closed stores and a decrease in wholesale revenues.
Despite the strong holiday sales, the company updated its guidance for fiscal 2021 and now expects total sales to be $500 million to $505 million, down from previous guidance of $500 million to $510 million.
The company expects net income of 80 cents to 85 cents per diluted share, up from previous guidance of 72 cents to 80 cents per diluted share. Adjusted EBITDA is expected to reach 74 to 78 million dollars, increased from previous guidance of 70 to 75 million dollars.
“We continue to transform our business through DXL’s brand repositioning which allows us to better target the addressable market and drive sales growth. For the critical 9-week holiday shopping season we grew sales both in-store and through our direct channels with very few promotions which contributed to higher margins based on lower markdowns,” said Harvey Kanter, president and chief executive officer.
“These structural elements are a major factor in driving our expected record performance for the full year in adjusted EBITDA, net income, and free cash flow. We have remained faithful to our strategic initiative to transform DXL and reposition our brand with a greater focus on fit, selection and experience.”
Kanter continued, “With the resurgence of Covid-19 infections from the Omicron variant, we are experiencing a softening of sales which we attribute to growing public concern which we have reflected in our updated guidance. Supply chain disruptions still exist, however, they continue to slowly improve and we are continually monitoring and pivoting to ensure we have a better flow of inventory to meet our sales expectations.”
The company plans to report its actual fourth-quarter and fiscal 2021 financial results on March 17, 2022.