Financial Performance - Total sales for fiscal 2024 were $467.0 million, a decrease of 10.5% from $521.8 million in fiscal 2023[9] - Net income for fiscal 2024 was $3.1 million, or $0.05 per diluted share, compared to $27.9 million, or $0.43 per diluted share, in fiscal 2023[22] - Adjusted EBITDA for fiscal 2024 was $19.9 million, down from $55.9 million in fiscal 2023[26] - Free cash flow for fiscal 2024 was $1.9 million, down from $32.2 million in fiscal 2023[27] - Comparable sales for the fourth quarter decreased by 8.7% compared to the fourth quarter of fiscal 2023[4] - Gross margin for fiscal 2024 was 46.5%, a decrease of 190 basis points from 48.4% in fiscal 2023[11] - SG&A expenses for fiscal 2024 were 42.5% of sales, up from 37.7% in fiscal 2023[12] - Total sales for the three months ended February 1, 2025, were $119.2 million, down from $137.1 million in the same period last year[56] - The net loss for the three months ended February 1, 2025, was $1.3 million, compared to a net income of $5.2 million for the same period in 2024[56] - Adjusted EBITDA for the fiscal year ended February 1, 2025, was $19.9 million, down from $55.9 million in the previous fiscal year, reflecting a decrease of approximately 64.4%[60] - Sales for the three months ended February 1, 2025, were $119.2 million, a decrease of 13.1% from $137.1 million in the same period last year[60] - Free cash flow for the fiscal year ended February 1, 2025, was $1.9 million, a significant drop from $32.2 million in the previous year, indicating a decline of approximately 94.1%[65] - Adjusted net income for the three months ended February 1, 2025, was $1.0 million, compared to $6.4 million for the same period in 2024, a decrease of approximately 84.4%[62] - The adjusted EBITDA margin for the three months ended February 1, 2025, was 3.5%, down from 8.5% in the same period last year, indicating a decline of 58.8%[60] Cash and Investments - As of February 1, 2025, the company had cash and investments of $48.4 million, down from $60.0 million a year earlier, with no outstanding debt[31] - Cash and cash equivalents decreased to $11.901 billion in February 2025 from $27.590 billion in February 2024, a decline of approximately 56.8%[59] Inventory and Sales Channels - Inventory decreased by 6.8% to $75.5 million compared to $81.0 million at February 3, 2024, with an inventory turnover rate improvement of over 30% since fiscal 2019[32] - Direct sales for fiscal 2024 were $141.3 million, representing 30.3% of retail segment sales, a decrease from $163.1 million or 31.3% in fiscal 2023[38] Future Outlook and Plans - For fiscal 2025, the company expects capital expenditures between $19.0 million and $21.0 million, with plans to open eight new DXL stores and convert two Casual Male XL stores[37] - Comparable sales are down 12.5% in the first six weeks of fiscal 2025, but the company anticipates gradual improvement throughout the year[39] - The company plans to pause new store openings in fiscal 2026 until the men's retail apparel business improves[37] - The company expects minimal exposure to tariffs, impacting gross margin by less than 10 basis points in 2025[40] Shareholder Actions - The company repurchased 4.9 million shares of common stock for $13.7 million during fiscal 2024[8] - The company repurchased 4.9 million shares at a total cost of $13.7 million during fiscal 2024[33] Assets and Liabilities - Total assets increased to $380.955 billion in February 2025, up from $357.741 billion in February 2024, representing a growth of approximately 6.8%[59] - Operating leases increased to $184.615 billion in February 2025, up from $154.537 billion in February 2024, representing an increase of approximately 19.4%[59] - Accounts payable rose to $24.344 billion in February 2025, compared to $17.353 billion in February 2024, reflecting an increase of approximately 40.3%[59]

CANTON, Mass., March 20, 2025 (GLOBE NEWSWIRE) -- Destination XL Group, Inc. (NASDAQ:DXLG), the largest integrated commerce specialty retailer of Big + Tall men's clothing and shoes, today reported financial results for the fourth quarter and fiscal year 2024. Fourth Quarter Highlights Total sales for the 13-week fourth quarter were $119.2 million, down 13.1% from $137.1 million for the 14-week fourth quarter of fiscal 2023. Comparable sales for the fourth quarter decreased 8.7% as compared to the fourth qu ...

Core Insights - Destination XL Group, Inc. reported a total sales of $467.0 million for fiscal 2024, a decrease of 10.5% from $521.8 million in fiscal 2023, primarily due to a 10.6% decline in comparable sales [6][10][22] - The company experienced a net income of $3.1 million, or $0.05 per diluted share, compared to $27.9 million, or $0.43 per diluted share, in fiscal 2023 [22][24] - Adjusted EBITDA for fiscal 2024 was $19.9 million, down from $55.9 million in fiscal 2023, reflecting a challenging year for the men's apparel sector [25][26] Financial Performance - Total sales for the fourth quarter of fiscal 2024 were $119.2 million, down 13.1% from $137.1 million in the fourth quarter of fiscal 2023 [6][9] - Comparable sales for the fourth quarter decreased by 8.7%, with store sales down 6.7% and direct business down 12.7% [9][10] - The gross margin for fiscal 2024 was 46.5%, a decrease of 190 basis points from 48.4% in fiscal 2023, primarily due to increased occupancy costs [12][11] Operational Highlights - The company maintained a strong operating regimen, achieving a positive net income and free cash flow despite lower sales [4] - Cash flow from operations for fiscal 2024 was $29.6 million, down from $49.6 million in fiscal 2023 [26] - The company repurchased 4.9 million shares of common stock for $13.7 million during fiscal 2024 [33] Strategic Initiatives - In 2024, the company conducted consumer research to explore brand awareness and trends, which may drive long-term sales growth [5] - The company opened seven new stores and upgraded its eCommerce platform to enhance customer experience [5][36] - For fiscal 2025, the company plans to focus on executing its strategic plan while monitoring macroeconomic factors and potential tariff impacts [6][39] Market Outlook - The company expects comparable sales to gradually improve throughout fiscal 2025, moving from a low double-digit negative in the first quarter to a positive result in the second half of the year [38] - The company has minimal exposure to tariffs in China, Mexico, and Canada, which collectively represent less than 5% of its sourced products [6][39] - The company anticipates capital expenditures for fiscal 2025 to range from $19.0 million to $21.0 million, focusing on store openings and conversions [36]

Group 1 - Destination XL Group, Inc. (DXLG) has opened a new store in Roseville, California, marking its first new store opening of the fiscal year and the eighth in the past 12 months across the United States [1][4] - 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, which captures 242 unique measurements to offer custom clothing options and size recommendations [3] Group 2 - The Roseville store is part of DXL's mission to serve an underserved market, ensuring that Big + Tall men have access to fashionable clothing that fits comfortably [2][4] - DXL operates multiple retail and outlet stores across the United States, along with an e-commerce platform, providing a multi-channel shopping experience for customers [5]

Core Viewpoint - Destination XL Group, Inc. will release its fourth quarter and fiscal 2024 financial results on March 20, 2025, before market opens, followed by a conference call at 9:00 a.m. ET to discuss the results [1]. Company Overview - Destination XL Group, Inc. is the leading retailer of Men's Big + Tall apparel, providing a multi-channel shopping experience through DXL Big + Tall retail and outlet stores, Casual Male XL stores, and an e-commerce platform [4]. - The company is headquartered in Canton, Massachusetts, and its common stock is listed on the Nasdaq Global Market under the symbol "DXLG" [4]. Conference Call Details - Participants can join the conference call by pre-registering online, after which they will 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].

Core Insights - Destination XL Group, Inc. (DXLG) has opened a new store in Bellevue, WA, marking its seventh new store opening in the U.S. for the fiscal year [1][4] - The new store aims to enhance the shopping experience for Big + Tall men by offering a variety of brands and styles tailored to their needs [2][4] - DXL has introduced FiTMAPSM Sizing Technology in the Bellevue store, which captures 242 unique measurements for custom clothing options [3] Company Overview - Destination XL Group, Inc. is the leading retailer specializing in Big + Tall men's apparel, operating DXL Big + Tall and Casual Male XL stores across the U.S. [5] - The company provides a multi-channel shopping experience through its e-commerce website DXL.COM and mobile app, offering a wide selection of products for Big + Tall men [5]

Core Viewpoint - Destination XL Group, Inc. has updated its fiscal year 2024 guidance based on holiday sales results, indicating a slight decrease in expected total sales and adjusted EBITDA margin due to consumer spending challenges and price sensitivity [1][6]. Sales Performance - Total sales for the 9-week holiday period ended January 4, 2025, were $94.7 million, down from $102.4 million for the same period in the previous year [6]. - Comparable sales decreased by 7.4%, with in-store sales down 6.2% and direct business down 10.0% [6]. - November sales experienced a decline of 11.8%, but December saw an improvement with a decline of only 4.4% due to successful promotions during Black Friday and Cyber Monday [1]. Fiscal Year 2024 Guidance - Total sales for fiscal 2024 are now expected to be between $467.0 million and $470.0 million, a slight decrease from the previous guidance of $470.0 million [6]. - The adjusted EBITDA margin is projected to be between 4.2% and 4.5%, down from the previous guidance of 4.5% [6]. Financial Reporting - The company plans to report its actual fourth-quarter and fiscal 2024 financial results on March 20, 2025, during a conference call hosted by the CEO and CFO [2]. Non-GAAP Measures - The company provides adjusted EBITDA and adjusted EBITDA margin as non-GAAP measures to help investors better understand its performance [3][4]. - Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation, and amortization, adjusted for any asset impairment charges [4]. Company Overview - Destination XL Group, Inc. is a leading retailer specializing in Big + Tall men's apparel, operating both physical stores and an e-commerce platform [5]. - The company is headquartered in Canton, Massachusetts, and its stock is listed on the Nasdaq Global Market under the symbol "DXLG" [5].

Group 1 - Destination XL Group, Inc. has received a non-binding proposal from Fund 1 Investments, LLC to acquire all outstanding shares of the company [1] - The Board of Directors will review and evaluate the proposal along with other strategic alternatives with the assistance of financial and legal advisors [2] - Guggenheim Securities, LLC is serving as the financial advisor, while Greenberg Traurig, LLP is acting as the legal advisor for the company [2] Group 2 - Destination XL Group, Inc. is a leading retailer specializing in Big + Tall men's apparel, operating DXL Big + Tall and Casual Male XL retail and outlet stores across the United States [3] - The company also offers a multi-channel shopping experience through its e-commerce website DXL.COM and mobile app, providing a wide selection of products for Big + Tall men [3] - Destination XL Group, Inc. is headquartered in Canton, Massachusetts, and its common stock is listed on the Nasdaq Global Market under the symbol "DXLG" [3]

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to investment opportunities [1] Group 2 - A very small fraction of companies are expected to be a buy at any given time, highlighting a selective investment strategy [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a generally bullish market [1]

Financial Performance - For the three months ended November 2, 2024, sales decreased to $107.5 million, down from $119.2 million in the prior quarter, representing a decline of 9.4%[82] - Comparable sales decreased by 11.3%, with store sales down 9.9% and direct business sales down 14.7%[82] - Total sales for Q3 fiscal 2024 were $107.5 million, down 10.4% from $119.2 million in Q3 fiscal 2023, primarily due to an 11.3% decrease in comparable sales[86] - Net loss for Q3 fiscal 2024 was $1.8 million, or $(0.03) per diluted share, compared to net income of $4.0 million, or $0.06 per diluted share, in Q3 fiscal 2023[93] Margins and Expenses - Gross margin as a percentage of sales was 45.1%, down from 47.5% in the previous quarter[82] - Gross margin rate for Q3 fiscal 2024 was 45.1%, a decrease of 240 basis points from 47.5% in Q3 fiscal 2023, driven by increased occupancy costs[87] - SG&A expenses as a percentage of sales increased to 44.1%, compared to 40.2% in the prior quarter[82] - SG&A expenses as a percentage of sales increased to 44.1% in Q3 fiscal 2024 from 40.2% in Q3 fiscal 2023, despite a dollar decrease of $0.6 million[88] Cash and Investments - Cash and investments as of November 2, 2024, were $43.0 million, down from $60.4 million at October 28, 2023, with no debt outstanding[82] - Cash flow from operations for the first nine months of fiscal 2024 was $12.5 million, down from $33.1 million in the same period of fiscal 2023[97] - The Company had no outstanding borrowings under the Credit Facility at November 2, 2024, and no borrowings during the first nine months of fiscal 2024[103] Inventory Management - Inventory levels decreased by 10.7% compared to October 28, 2023[82] - Inventory decreased by approximately $10.7 million to $89.1 million as of November 2, 2024, with clearance inventory at 9.2% of total inventory[95] Store Openings and Expansion Plans - The company has paused its brand campaign for Q4 fiscal 2024 and reduced the planned number of new store openings in fiscal 2025 due to continued sales pressure[83] - Four new stores were opened in the first nine months of fiscal 2024, with plans for four more[83] - The company plans to open 8 new stores in fiscal 2025, down from a previous expectation of 10[84] - The Company opened four new DXL stores and converted four Casual Male XL stores to the DXL format during the first nine months of fiscal 2024, expecting to open four additional DXL stores by the end of fiscal 2024[105] - The Company plans to potentially open approximately 50 net new DXL stores over the next five years, representing a 15% increase in total square footage[105] Stock Repurchase and Credit Facilities - A $15.0 million stock repurchase program was approved, with $10.2 million utilized to repurchase 3.6 million shares during Q3 fiscal 2024[82] - A new stock repurchase program was approved, allowing the company to repurchase up to $15.0 million of its common stock[101] - The Company has a $125.0 million revolving credit agreement with Citizens Bank, with a maturity date of October 28, 2026[102] - As of November 2, 2024, the average unused excess availability was approximately $72.9 million, with unused excess availability at $78.1 million[103] - Outstanding standby letters of credit were $4.2 million and documentary letters of credit were $0.3 million as of November 2, 2024[103] - The Company is subject to an unused line fee of 0.25% on the Credit Facility[102] Marketing and Consumer Engagement - The company is focusing on traditional marketing channels, including a video campaign on social media platforms, after positive results from a brand advertising campaign test[83] - The new eCommerce platform is fully operational, with 100% of site traffic migrated, aiming to enhance consumer experience and operational agility[84] Capital Expenditures - Capital expenditures for fiscal 2024 are expected to range from $21.0 million to $24.0 million, net of tenant incentives[105] - Free cash flow before capital expenditures for store development was $2.5 million for the nine months ended October 28, 2023[110] - Adjusted EBITDA for the nine months ended November 2, 2024, was $15.7 million, with an adjusted EBITDA margin of 44.2%[110]