CANTON, Mass., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Destination XL Group, Inc. (NASDAQ: DXLG), the leading integrated commerce retailer of Big + Tall men’s clothing and shoes, announced today it will release its second quarter of fiscal 2025 financial results before the market opens on Wednesday, August 27, 2025. President and Chief Executive Officer Harvey Kanter and Executive Vice President, Chief Financial Officer, and Treasurer Peter Stratton will host a conference call the same morning at 9:00 a.m. ET to ...

Core Insights - Destination XL Group, Inc. (DXLG) has opened a new store in Selma, Texas, marking its sixth new store opening of the fiscal year [1][4] - The new location aims to enhance the shopping experience for Big + Tall men, offering exclusive styles and brands tailored to their needs [2][4] - DXL has introduced its proprietary FiTMAP® Sizing Technology in the new store, allowing for personalized measurements and accurate size recommendations [3] Company Overview - Destination XL Group, Inc. is the leading retailer specializing in Big + Tall men's apparel, operating both physical and online stores [5] - The company provides a multi-channel shopping experience through its retail and outlet stores, as well as its e-commerce platform DXL.COM [5] - DXL is headquartered in Canton, Massachusetts, and is publicly traded on the Nasdaq Global Market under the symbol "DXLG" [5]

Core Insights - Destination XL Group, Inc. (DXLG) has opened a new store in Boca Raton, FL, marking its fifth new store opening of the fiscal year [1][4] - The new store aims to provide a superior shopping experience for Big + Tall men, featuring exclusive styles and brands [2][4] - DXL has introduced its proprietary FiTMAPSM Sizing Technology in the new store, allowing for personalized size recommendations [3] Company Overview - Destination XL Group, Inc. is the leading retailer specializing in Big + Tall men's apparel, operating both retail and outlet stores across the United States [5] - The company offers a multi-channel shopping experience through its e-commerce website and mobile app, providing extensive product selections for Big + Tall men [5] - DXL is headquartered in Canton, Massachusetts, and is publicly traded on the Nasdaq Global Market under the symbol "DXLG" [5]

Financial Performance - Total sales for the first quarter of fiscal 2025 were $105.5 million, down from $115.5 million in the first quarter of fiscal 2024, reflecting a decrease in comparable sales of 9.4%[96] - The net loss for the first quarter was $(1.9) million, or $(0.04) per diluted share, primarily driven by the sales shortfall[96] - The company recorded a net loss of $1.9 million, or $(0.04) per diluted share, in Q1 fiscal 2025, compared to net income of $3.8 million, or $0.06 per diluted share, in Q1 fiscal 2024[115] - Cash flow from operations was $(12.0) million in Q1 fiscal 2025, a decrease from $(1.1) million in Q1 fiscal 2024, primarily due to decreased earnings and timing of payables[120] - Free cash flow was $(18.8) million in Q1 fiscal 2025, compared to $(7.0) million in Q1 fiscal 2024, reflecting increased capital expenditures[121] Sales and Comparable Sales - Comparable sales showed a gradual improvement over the quarter, with February down 13.9%, March down 8.2%, and April down 7.2%[97] - The direct business segment saw a comparable sales decrease of 16.2%, while store sales decreased by 6.6% in the first quarter of fiscal 2025[102] Margins and Expenses - The gross margin rate for the first quarter of fiscal 2025 was 45.1%, a decrease of 310 basis points from 48.2% in the first quarter of fiscal 2024[103] - Selling, general and administrative (SG&A) expenses as a percentage of sales increased to 45.0% in the first quarter of fiscal 2025, compared to 41.1% in the first quarter of fiscal 2024[107] - Customer Facing Costs represented 25.2% of sales in Q1 fiscal 2025, up from 23.0% in Q1 fiscal 2024; Corporate Support Costs increased to 19.8% from 18.1%[110] Cash and Investments - Cash and investments as of May 3, 2025, were $29.1 million, down from $53.2 million at May 4, 2024, with no debt outstanding[100] Tax and Interest - The effective tax rate increased to 39.7% in Q1 fiscal 2025 from 30.4% in Q1 fiscal 2024, primarily due to permanent book-to-tax differences[114] - Net interest income decreased to $0.3 million in Q1 fiscal 2025 from $0.6 million in Q1 fiscal 2024 due to a lower average balance of investments[112] Inventory and Depreciation - Inventory decreased by approximately $5.8 million to $85.5 million as of May 3, 2025, with clearance inventory at 9.5% of total inventory, down from 9.7%[116] - Depreciation and amortization rose to $3.6 million in Q1 fiscal 2025 from $3.3 million in Q1 fiscal 2024, driven by increased capital expenditures for new store openings and technology projects[111] Future Plans and Technology - The company plans to open six additional DXL stores during fiscal 2025, with capital expenditures expected to range from $19.0 million to $21.0 million[125] - FiTMAP Sizing Technology is currently in 52 DXL retail locations, with plans to expand to 85 stores by the end of fiscal 2025 and up to 200 stores by the end of fiscal 2027[126] - The company has an exclusive license for the FiTMAP Sizing Technology until 2030, aimed at enhancing customer engagement and personalization[97] Marketing Costs - Marketing costs were 6.1% of sales for the first quarter of fiscal 2025, slightly down from 6.3% in the first quarter of fiscal 2024, with expectations of approximately 5.9% for fiscal 2025[109] Tariffs Impact - The company expects the impact of current tariffs on financial results for fiscal 2025 could be an increase in costs of less than $2.0 million, or approximately 40 basis points as a percentage of sales[106]

Financial Data and Key Metrics Changes - Net sales for the first quarter were $105.5 million, down from $115.5 million in the same quarter last year, primarily due to a 9.4% decline in comparable sales [37][38] - Gross margin rate decreased to 45.1% from 48.2% year-over-year, with a 280 basis point increase in occupancy costs and a 30 basis point decrease in merchandise margins [38] - EBITDA for the quarter was $100,000, a significant drop from $8.2 million in the first quarter of the previous year [40] Business Line Data and Key Metrics Changes - Comparable store sales decreased by 6.6% for physical stores and 16.2% for direct sales, with improvements noted in monthly performance [12][37] - The sales penetration of private label brands increased from 55% to 57%, indicating a shift towards lower-priced merchandise that generates higher margins [15] Market Data and Key Metrics Changes - The overall economic environment remains challenging, with consumers tightening their spending, particularly on discretionary items [13] - Traffic to stores accounted for approximately 90% of the comparable sales decline, highlighting the need for improved brand awareness [20] Company Strategy and Development Direction - The company aims to stabilize its business and return to growth by focusing on customer engagement, cost control, and prudent capital investment [11] - New store openings are being paused to focus on stabilizing the core business, with plans to open four more stores later this year [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about gradual improvements in comparable sales, projecting a return to positive growth in the second half of the year [6] - The impact of tariffs is being closely monitored, with an estimated cost increase of less than $2 million for the year if current policies remain unchanged [7][8] Other Important Information - The company has launched several initiatives, including the Heroes Discount program and the FinExchange, aimed at enhancing customer engagement and driving sales [24][26] - The introduction of the FITMAP technology is expected to redefine the retail experience for big and tall consumers, with plans for further expansion [33][35] Q&A Session Summary Question: Is there any update on the company's growth strategies? - Management reiterated their commitment to stabilizing the business and focusing on customer engagement and cost control, with plans for future growth once stability is achieved [11][21] Question: How is the company addressing the impact of tariffs? - The company is actively working with vendors to mitigate tariff impacts and has not yet implemented price increases, assessing market conditions carefully [7][8]

Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $105.5 million, down from $115.5 million in Q1 2024, primarily due to a 9.4% decline in comparable sales, partially offset by new store sales [36] - Gross margin rate decreased to 45.1% from 48.2% in the previous year, driven by increased occupancy costs and markdown rates [37] - EBITDA for the quarter was $100,000, a significant drop from $8.2 million in Q1 2024, reflecting the impact of lower sales [40] Business Line Data and Key Metrics Changes - Comparable store sales decreased by 6.6% for physical stores and 16.2% for direct sales, with improvements noted in monthly performance [12] - The sales penetration of private label brands increased from 55% to 57%, indicating a shift towards lower-priced merchandise that generates higher margins [15] Market Data and Key Metrics Changes - The company observed a decline in customer traffic, which accounted for approximately 90% of the comparable sales decline [20] - The impact of tariffs is estimated to add less than $2 million or approximately 40 basis points to costs for the year, with ongoing efforts to mitigate this impact [6] Company Strategy and Development Direction - The strategic focus for 2025 is to stabilize the business and return to growth by enhancing customer engagement and controlling costs [11] - New store openings are planned to pause after reaching a total of 18 stores, allowing the company to focus on stabilizing core operations [21] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic environment is challenging, with consumers being cautious about discretionary spending [13] - There is optimism for gradual improvement in comparable sales throughout 2025, with expectations of returning to positive growth in the second half of the year [5] Other Important Information - The company has launched several initiatives, including the Heroes Discount program and the FinExchange, aimed at increasing customer engagement and driving sales [24][25] - The introduction of the FITMAP technology aims to enhance the shopping experience for big and tall consumers, with plans to expand its implementation [34] Q&A Session Summary Question: What are the expectations for future sales growth? - Management expressed optimism for gradual improvement in comparable sales, expecting a return to positive growth in the second half of the year [5] Question: How is the company addressing the impact of tariffs? - The company is actively working with vendors to mitigate tariff impacts and has not yet implemented price increases [6][8]

Financial Performance - Total sales for Q1 fiscal 2025 were $105.5 million, down 8.6% from $115.5 million in Q1 fiscal 2024, with comparable sales decreasing by 9.4%[5] - Net loss for Q1 fiscal 2025 was $(1.9) million, or $(0.04) per diluted share, compared to net income of $3.8 million, or $0.06 per diluted share in Q1 fiscal 2024[20] - Adjusted EBITDA for Q1 fiscal 2025 was $0.1 million, a significant decrease from $8.2 million in Q1 fiscal 2024[21] - Gross margin rate for Q1 fiscal 2025 was 45.1%, down from 48.2% in Q1 fiscal 2024, primarily due to increased occupancy costs and markdown activity[10] - SG&A expenses as a percentage of sales increased to 45.0% in Q1 fiscal 2025 from 41.1% in Q1 fiscal 2024[13] - Free cash flow before capital expenditures for store development was $(14.5) million for Q1 fiscal 2025, compared to $(4.6) million in Q1 fiscal 2024[50] Cash and Investments - Cash and investments decreased to $29.1 million as of May 3, 2025, from $53.2 million as of May 4, 2024, reflecting $13.6 million in share repurchases[27] - Cash and cash equivalents decreased to $8.1 million as of May 3, 2025, down from $11.9 million on February 1, 2025[46] Inventory Management - Inventory decreased by approximately $5.8 million to $85.5 million as of May 3, 2025, compared to $91.2 million as of May 4, 2024[28] - Inventory levels as of May 3, 2025, were $85.5 million, an increase from $75.5 million on February 1, 2025, but a decrease from $91.2 million a year earlier[46] Future Outlook - The company expects a single-digit decrease in comparable sales for Q2 fiscal 2025, with a return to positive results in the second half of the fiscal year[9] - The company anticipates that the impact of current tariffs on financial results for fiscal 2025 could increase costs by less than $2.0 million, or approximately 40 basis points as a percentage of sales[40] Expansion Plans - FiTMAP sizing technology is currently in 52 DXL retail locations, with plans to expand to 85 stores by the end of fiscal 2025 and up to 200 stores by the end of fiscal 2027[30] - The company plans to open six additional DXL stores during fiscal 2025, with capital expenditures expected to range from $19.0 million to $21.0 million[29] Sales Breakdown - For Q1 fiscal 2025, direct sales were $29.1 million, representing 27.5% of total sales, down from $34.6 million or 30.0% in Q1 fiscal 2024[31] - Total sales for the three months ended May 3, 2025, were $105.5 million, a decrease from $115.5 million in the same period last year[45] - The company reported a net loss of $1.9 million for Q1 fiscal 2025, compared to a net income of $3.8 million in Q1 fiscal 2024[48] - Adjusted EBITDA for Q1 fiscal 2025 was $0.1 million, significantly lower than $8.2 million in Q1 fiscal 2024, resulting in an adjusted EBITDA margin of 0.1% compared to 7.1%[48]

Core Viewpoint - Destination XL Group, Inc. continues to expand its footprint in the Big + Tall men's clothing market with the opening of a new store in East Hanover, NJ, enhancing its commitment to serving an underserved demographic [1][4]. Group 1: Store Opening Details - The new store in East Hanover, NJ, is located in Hanover Commons at 200 NJ-10 and represents DXL's fourth new store opening in the fiscal year and the tenth in the past 12 months across the United States [1]. - The East Hanover store officially opened on May 24, 2025 [4]. Group 2: Customer Experience and Offerings - The East Hanover location aims to provide a superior shopping experience with styles specifically designed for Big + Tall men, featuring popular brands such as Polo Ralph Lauren®, Reebok®, Nautica®, vineyard vines®, Columbia®, and Levi's® [2]. - DXL has introduced its proprietary FiTMAPSM Sizing Technology at the new store, which utilizes digital scanning to provide customers with accurate size recommendations and custom clothing options [3]. Group 3: Company Mission and Vision - The company emphasizes its mission to ensure that every Big + Tall man can find fashionable clothing that fits comfortably, as stated by CEO Harvey Kanter [4]. - Destination XL Group operates multiple retail formats, including DXL Big + Tall and Casual Male XL stores, along with an e-commerce platform, DXL.COM, providing a comprehensive shopping experience for its customers [5].

Group 1 - Destination XL Group, Inc. (DXLG) has opened a new store in Syracuse, NY, marking its third new store opening in the fiscal year and twelfth in the past 12 months across the U.S. [1] - The new store aims to provide a superior shopping experience for Big + Tall men, featuring exclusive styles and brands such as Polo Ralph Lauren®, Reebok®, and Levi's® [2][4] - DXL has introduced its proprietary FiTMAPSM Sizing Technology in the new store, allowing for personalized measurements and accurate size recommendations [3] Group 2 - The CEO of DXL, Harvey Kanter, expressed excitement about expanding the company's reach in the Syracuse area, emphasizing the mission to provide fashionable options for Big + Tall customers [4] - Destination XL Group operates multiple retail and outlet stores, as well as an e-commerce platform, offering a comprehensive selection for Big + Tall men [5]

Company Announcement - Destination XL Group, Inc. will release its first quarter of fiscal 2025 financial results before the market opens on May 29, 2025 [1] - The conference call to discuss the results will be hosted by President and CEO Harvey Kanter and CFO Peter Stratton at 9:00 a.m. ET on the same day [1] Participation Details - Participants can join the conference call by pre-registering at a provided link to receive a dial-in number and unique PIN [2] - A webcast will also be available for listening, with a replay accessible through the company's website [3] Company Overview - Destination XL Group, Inc. is the leading retailer of Men's Big + Tall apparel, operating DXL Big + Tall and Casual Male XL retail and outlet stores across the United States [4] - The company offers a multi-channel solution through its e-commerce website DXL.COM and mobile app, providing an extensive selection of products for Big + Tall men [4] - The company is headquartered in Canton, Massachusetts, and its stock is listed on the Nasdaq Global Market under the symbol "DXLG" [4]