Destination XL posts marginal rise in Q2 sales
By Prachi Singh
28 Aug 2019
Total sales for the second quarter increased 0.9 percent to 123.2 million dollars at Destination XL. The company said, the increase of 1 million dollars in total sales was primarily due to an increase in wholesale revenue of 2.7 million dollars and other revenue of 0.1 million dollars and was partially offset by a decrease of 1.8 million dollars in sales from closed stores. Comparable sales for the quarter were flat over the prior year.
“The second quarter got off to a slow start as unfavourable weather impacted sell-through of seasonal product. Despite the second quarter’s performance shortfall, we improved comparable sales as the quarter progressed ending the period with a slightly positive comp trend. Our second quarter wholesale sales improved from the first quarter run rate as we made good progress on initiatives to build our wholesale business unit,” said Harvey S. Kanter, the company’s President and Chief Executive Officer in a statement.
For the second quarter, gross margin rate, inclusive of occupancy costs, was 44.3 percent compared to 46.3 percent, a decrease of 200 basis points. Adjusted EBITDA was 7.1 million dollars compared to 8.7 million dollars for the second quarter of fiscal 2018.
For fiscal 2019, the company expects to deliver comparable sales growth in the omni-channel retail business and to generate free cash flow. The company plans to open two new DXL retail stores, rebrand 12 Casual Male XL retail stores to DXL retail stores, and rebrand one Casual Male XL outlet to a DXL outlet store and plans to close five Casual Male XL retail stores, one DXL store and all five Rochester Clothing stores.