Destination XL posts slight Q4 sales growth, expects return to profit
Canton, Massachusetts-based big and tall menswear retailer Destination XL Group, Inc. announced a 1.1% rise in fourth-quarter comparable sales on Tuesday, and provided quarterly earnings guidance predicting a return to profit in the period.
The company, which operates the DXL and Casual Male XL banners, reported total sales of $131.2 million for the fourth quarter ended February 1, 2020, representing an increase of $0.1 million compared to the prior-year period.
For the full fiscal year 2019, Destination XL announced total sales of approximately $474.0 million, up 0.04% from $473.8 million in the previous year. Annual comparable sales at the company increased 0.1%.
Thanks to this – albeit marginal – progress, the company expects to turn its fortunes around in the fourth quarter, predicting that quarterly net earnings per diluted share will total between $0.04 and $0.06, up from a loss of $0.15 per diluted share in Q4 2018.
“We are continuing to make progress with sales growth, and we did so in the fourth quarter with a relatively comparable promotional cadence,” commented Destination XL president and CEO Harvey S. Kanter in a release. “We expect our fourth quarter financial results will be a positive reflection of that progress.”
Kanter also gave an update on the advances being made in the company’s strategic plan, emphasizing that he believes that Destination XL’s existing credit facility will allow it to successfully execute the strategy.
The company has a $125 million revolving credit facility and a $15 million FILO term loan, both of which expire in May 2023.
Destination XL intends to report its full financial results for the fourth quarter and full fiscal year 2019 on March 19, 2020.
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