CANTON, Mass., Oct. 25, 2024 (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 third quarter of fiscal 2024 financial results before the market opens on Friday, November 22, 2024. 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 di ...

Press Release Atos selected by the European Space Agency (ESA) to expand the capabilities of the Destination Earth (DestinE) services platform Funded by the European Commission, the DestinE initiative powers a platform harnessing extensive climate data using a digital model of Earth Paris, France – September 25, 2024 – Atos today announces that it has been selected by the European Space Agency (ESA) to lead a consortium tasked with an initial 12-month mission to expand the capabilities of the Destination Ea ...

kali9/E+ via Getty Images Destination XL Group, Inc. (NASDAQ:DXLG) Q2 2024 results were very bad, with comparables deteriorating from Q1 2024 and Q4 2023. The company has complained about low traffic and their carried brands underpricing them, signaling some challenges with the business model. Although DXLG continues to be optically cheap, the stock has ample cash reserves. I believe its management is sincere; the comparable figures lead me to believe that execution is a problem. In particular, if the cited ...

Destination XL Group, Inc. (NASDAQ:DXLG) Q2 2024 Earnings Conference Call August 29, 2024 9:00 AM ET Company Participants Shelly Mokas - Vice President of Financial Reporting and SEC Compliance Harvey Kanter - President and Chief Executive Officer Peter Stratton - Executive Vice President, Chief Financial Officer and Treasurer Conference Call Participants Jeremy Hamblin - Craig-Hallum Capital Markets Keegan Cox - D.A. Davidson Operator Good day everyone and welcome to the Destination XL Group, Inc. Second Q ...

. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Securities registered pursuant to Section 12(b) of the Act. Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value DXLG The Nasdaq Stock Market LLC FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 3, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANG ...

[Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) [Second Quarter Financial Highlights](index=1&type=section&id=Second%20Quarter%20Financial%20Highlights) Destination XL Group reported a significant downturn in Q2 fiscal 2024, with sales and comparable sales down 10.9%, net income per diluted share at $0.04, and Adjusted EBITDA at $6.5 million Q2 Fiscal 2024 vs. Q2 Fiscal 2023 Key Metrics | Metric | Q2 Fiscal 2024 | Q2 Fiscal 2023 | Change | | :--- | :--- | :--- | :--- | | Total Sales | $124.8 million | $140.0 million | -10.9% | | Comparable Sales | -10.9% | N/A | -10.9% | | Net Income per Diluted Share | $0.04 | $0.18 | -77.8% | | Adjusted EBITDA | $6.5 million | $22.9 million | -71.6% | | Adjusted EBITDA Margin | 5.2% | 16.4% | -1120 bps | | Total Cash and Investments | $63.2 million | $62.8 million | +0.6% | | Debt | $0 | $0 | No Change | [Fiscal 2024 Financial Outlook](index=5&type=section&id=Financial%20Outlook) The company revised its full-year fiscal 2024 guidance downwards, projecting sales between $470 million and $490 million, comparable sales decrease of 6% to 10%, and an adjusted EBITDA margin of approximately 6% Revised Fiscal 2024 Guidance | Metric | Previous Guidance | Revised Guidance | | :--- | :--- | :--- | | Sales | $500 million | $470M - $490M | | Comparable Sales | N/A | -6% to -10% | | Adjusted EBITDA Margin | 7% | ~6% | Fiscal 2024 Forecast (Mid-point of Guidance) | Metric | Projected Value | | :--- | :--- | | Sales | $480.0 million | | Net Income (GAAP) | $10.9 million | | Net Income per Diluted Share | $0.19 | | Adjusted EBITDA (Non-GAAP) | $28.8 million | | Adjusted EBITDA Margin (Non-GAAP) | 6.0% | [Management Commentary and Strategy](index=1&type=section&id=Management%27s%20Comments) [CEO's Comments on Performance and Strategy](index=1&type=section&id=CEO%27s%20Comments%20on%20Performance%20and%20Strategy) Management attributes weak Q2 performance to a challenging retail market with inflationary pressures, and is responding by shifting marketing, managing expenses, and slowing new store rollout for 2025 to preserve capital - Q2 results were negatively impacted by a challenging retail environment, with reduced foot traffic and lower direct business conversion as customers faced inflationary pressures[3](index=3&type=chunk) - The company is pivoting its strategy in response to market headwinds[3](index=3&type=chunk) - Shifting marketing spend from the brand campaign to channels with better short-term traffic generation - Slowing the new store rollout plan for 2025 from **15 to 10 stores** to lower capital expenditures - Prioritizing balance sheet strength, profitable sales, and free cash flow generation [Progress on Growth Initiatives](index=1&type=section&id=Progress%20on%20Growth%20Initiatives) The company reports positive progress on long-term growth strategies, including a well-tested brand campaign, new store openings, e-commerce platform upgrade, and successful Nordstrom digital marketplace collaboration - **Marketing & Brand Building**: A new brand campaign in three test markets yielded positive results in traffic and customer acquisition, but the fall campaign will be pivoted to more traditional marketing channels due to current market conditions[4](index=4&type=chunk) - **Store Development**: Three new stores have opened in 2024, with five more expected this year, however, the 2025 plan is being scaled back from **15 to 10 new stores**[5](index=5&type=chunk) - **New Website Platform**: The transition to a new e-commerce platform is underway, with the final phase expected to be completed in January 2025[5](index=5&type=chunk) - **Alliances & Collaborations**: The merchandise launch on Nordstrom's digital marketplace has been successful, and the company is looking to expand the product offering[6](index=6&type=chunk) [Detailed Financial Performance (Q2 2024)](index=2&type=section&id=Second%20Quarter%20Results) [Sales](index=2&type=section&id=Sales) Total sales for Q2 fiscal 2024 decreased by **10.9%** to **$124.8 million**, driven by a **10.9%** drop in comparable sales, with store comparable sales down **10.0%** and direct business comparable sales down **12.8%** Q2 2024 Sales Performance | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Total Sales | $124.8M | $140.0M | -10.9% | | Comparable Sales | -10.9% | N/A | -10.9% | | - Store Comps | -10.0% | N/A | -10.0% | | - Direct Comps | -12.8% | N/A | -12.8% | [Gross Margin](index=2&type=section&id=Gross%20Margin) The gross margin rate for Q2 2024 decreased by **210 basis points** to **48.2%**, primarily due to deleveraging of occupancy costs on lower sales, while merchandise margin remained flat - The gross margin rate fell by **210 basis points**, driven by higher occupancy costs as a percentage of sales[8](index=8&type=chunk) - Merchandise margin was flat compared to the prior year[8](index=8&type=chunk) [Selling, General & Administrative (SG&A)](index=3&type=section&id=Selling%2C%20General%20%26%20Administrative) SG&A expenses for Q2 2024 increased by **$6.2 million** to **43.0% of sales**, primarily due to higher marketing costs, which rose to **8.8% of sales** Q2 SG&A Expense Analysis | Metric | Q2 Fiscal 2024 | Q2 Fiscal 2023 | | :--- | :--- | :--- | | SG&A Expenses | $53.7M | $47.4M | | SG&A as % of Sales | 43.0% | 33.9% | | Marketing Costs as % of Sales | 8.8% | 5.0% | [Net Income](index=3&type=section&id=Net%20Income) Net income for Q2 fiscal 2024 significantly decreased to **$2.4 million**, or **$0.04 per diluted share**, from **$11.6 million** or **$0.18 per diluted share** in Q2 fiscal 2023 Q2 Net Income Comparison | Metric | Q2 Fiscal 2024 | Q2 Fiscal 2023 | | :--- | :--- | :--- | | Net Income | $2.4 million | $11.6 million | | Diluted EPS | $0.04 | $0.18 | [Adjusted EBITDA](index=3&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA for Q2 fiscal 2024 was **$6.5 million**, a substantial decline from **$22.9 million** in the prior year - Adjusted EBITDA for Q2 2024 was **$6.5 million**, compared to **$22.9 million** for Q2 2023[13](index=13&type=chunk) [Financial Position and Liquidity](index=3&type=section&id=Financial%20Position%20and%20Liquidity) [Cash Flow](index=3&type=section&id=Cash%20Flow) Cash flow from operations for the first six months of fiscal 2024 was **$16.0 million**, with free cash flow significantly decreasing to **$3.2 million** due to lower earnings and increased capital expenditures Free Cash Flow (First Six Months) | (in millions) | Six Months Ended Aug 3, 2024 | Six Months Ended Jul 29, 2023 | | :--- | :--- | :--- | | Cash flow from operating activities | $16.0 | $26.2 | | Capital expenditures (excl. store dev) | ($7.6) | ($3.9) | | Capital expenditures for store dev | ($5.2) | ($0.8) | | **Free Cash Flow (non-GAAP)** | **$3.2** | **$21.6** | [Balance Sheet & Liquidity](index=4&type=section&id=Balance%20Sheet%20%26%20Liquidity) As of August 3, 2024, the company maintained a strong liquidity position with **$63.2 million** in cash and investments and no debt, while actively managing inventory down by **$8.9 million** to **$78.6 million** - The company held **$63.2 million** in cash and investments with no debt as of August 3, 2024[15](index=15&type=chunk) - Inventory decreased by **$8.9 million** to **$78.6 million** compared to the prior year, reflecting proactive management[16](index=16&type=chunk) - Availability under the credit facility was **$69.9 million**[15](index=15&type=chunk) [Operational Information](index=4&type=section&id=Operational%20Information) [Retail Store Information](index=4&type=section&id=Retail%20Store%20Information) As of August 3, 2024, the company operated **284 stores**, with **two new DXL stores** opened in H1 2024, **six more planned** for H2, and the 2025 new store plan reduced from **15 to 10** Store Count as of August 3, 2024 | Store Type | of Stores | | :--- | :--- | | DXL retail | 233 | | DXL outlets | 15 | | CMXL retail | 17 | | CMXL outlets | 19 | | **Total** | **284** | - The company expects to open **six additional DXL stores** in the second half of fiscal 2024[17](index=17&type=chunk) - The plan for fiscal 2025 has been revised down to **10 new stores** from a previous estimate of **15**[17](index=17&type=chunk) [Digital Commerce Information](index=4&type=section&id=Digital%20Commerce%20Information) Digital commerce sales in Q2 2024 were **$37.0 million**, representing **29.6% of total retail segment sales**, a decrease from **$42.6 million** or **30.4%** in the prior year Q2 Digital Commerce Sales | Metric | Q2 Fiscal 2024 | Q2 Fiscal 2023 | | :--- | :--- | :--- | | Direct Sales | $37.0 million | $42.6 million | | % of Retail Segment Sales | 29.6% | 30.4% | [Appendices](index=5&type=section&id=Appendices) [Non-GAAP Measures](index=5&type=section&id=Non-GAAP%20Measures) This section explains the company's use of non-GAAP financial measures, including Adjusted EBITDA and Free Cash Flow, providing detailed reconciliations to their most comparable GAAP counterparts - The company uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow to help investors evaluate performance, profitability, and liquidity[21](index=21&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) GAAP to Non-GAAP Reconciliation of Adjusted EBITDA (Q2) | (in millions) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $2.4 | $11.6 | | Add back: Loss on retirement plans | — | $4.2 | | Add back: Provision for income taxes | $1.3 | $4.2 | | Add back: Interest income, net | ($0.6) | ($0.5) | | Add back: Depreciation and amortization | $3.4 | $3.5 | | **Adjusted EBITDA (non-GAAP)** | **$6.5** | **$22.9** | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents unaudited Consolidated Statements of Operations and Condensed Consolidated Balance Sheets, providing detailed financial figures for the three and six-month periods ending August 3, 2024, and key balance sheet data Consolidated Statements of Operations (Three Months Ended) | (in thousands) | August 3, 2024 | July 29, 2023 | | :--- | :--- | :--- | | Sales | $124,820 | $140,043 | | Gross Profit | $60,171 | $70,379 | | Operating Income | $3,124 | $19,465 | | **Net Income** | **$2,383** | **$11,633** | Condensed Consolidated Balance Sheet Highlights | (in thousands) | August 3, 2024 | July 29, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $21,475 | $19,246 | | Inventories | $78,612 | $87,532 | | Total Assets | $383,768 | $351,960 | | Total Liabilities | $226,814 | $201,860 | | Total Stockholders' Equity | $156,954 | $150,100 | [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section includes a standard safe harbor statement regarding forward-looking statements on fiscal 2024 guidance and strategic initiatives, cautioning that actual results may differ due to various risks and uncertainties - The report contains forward-looking statements regarding fiscal 2024 guidance, strategic plans, store development, and other future expectations[26](index=26&type=chunk) - These statements are subject to risks and uncertainties, including consumer spending habits, inflation, global conflicts, and the ability to execute on strategic plans[26](index=26&type=chunk) - Readers are advised to consult SEC filings for a full list of risks[26](index=26&type=chunk)

LOS ANGELES, July 15, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Destination XL Group, Inc. ("Destination XL" or the "Company") (NASDAQ: DXLG) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. Destination XL investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq. On May 30, 2024, Destination XL issued a press release "report[ing] operating results for the first quarter of f ...

On this news, Destination XL's stock price fell $0.27 per share, or 7.56%, to close at $3.30 per share on May 30, 2024. Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerant ...

NEW YORK, May 30, 2024 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Destination XL Group, Inc. ("Destination XL" or the "Company") (NASDAQ: DXLG). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980. The investigation concerns whether Destination XL and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] O ...

Financial Data and Key Metrics Changes - The company reported net sales of $115.5 million for Q1 2024, a decrease of 7.9% compared to $125.4 million in Q1 2023, with comparable sales down 11.3% [27][28] - Gross margin rate was 48.2%, slightly down from 48.6% in the previous year, primarily due to increased occupancy costs [30] - EBITDA margin for the quarter was 7.1%, down from 10.1% in Q1 2023, with expectations for a full-year EBITDA margin of 7% [34] Business Line Data and Key Metrics Changes - Comparable sales for stores decreased by 11.4%, while direct sales were down 11% [28][13] - The company opened new stores, contributing to non-comparable sales of $1.8 million, but overall sales were still impacted by macroeconomic challenges [27][28] Market Data and Key Metrics Changes - The company noted that inflationary pressures have led consumers to prioritize spending on essentials, impacting discretionary spending on apparel [14][28] - A report indicated that 55% of apparel units purchased in early 2024 came from the lowest price quartile, up from 35% the previous year, indicating a shift in consumer purchasing behavior [18] Company Strategy and Development Direction - The company is executing a long-range plan (LRP) with four initiatives: increasing brand awareness, expanding store footprint, improving digital experience, and forming alliances [7][10] - A new brand advertising campaign was launched in May 2024, aimed at increasing awareness and market share [20][21] - The company plans to open eight new stores in fiscal 2024, down from the initially planned ten [11] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the tough comparable sales performance but remains optimistic about future growth opportunities [5][6] - The company expects sales for the full year to be at the lower end of the previously estimated range of $500 million to $530 million [15][29] - Management highlighted the importance of driving traffic to stores and online as a key focus for future growth [48] Other Important Information - The company maintains a strong balance sheet with cash and short-term investments of $53.2 million and no outstanding debt [34][35] - Inventory management has improved, with a 9% decrease in inventory compared to the previous year [19] Q&A Session Summary Question: Insights on marketing investments and expected response timing - Management indicated that the marketing investment is a long-term strategy, expecting a gradual response over two to three years [40][43] Question: Impact of consumer behavior on channel mix - Management noted that consumers are increasingly shopping at lower price points, which may affect the mix of online and store sales [49][51] Question: Timing of the Nordstrom collaboration launch - The collaboration with Nordstrom is live, with initial sales showing promise, although it is not expected to be material in the current year [54][55]