Destination XL Group, Inc. (NASDAQ:DXLG) Q3 2023 Earnings Conference Call November 17, 2023 9:00 AM ET Company Participants Shelly Mokas - Vice President of Financial Reporting and SEC Harvey Kanter - President and Chief Executive Officer Peter Stratton - Chief Financial Officer Conference Call Participants Michael Baker - D.A. Davidson Jeremy Hamblin - Craig-Hallum Capital Markets Group Raphi Savitz - RYS Advisors Operator Good day, and thank you for standing by. Welcome to Destination XL Group Incorporate ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) (Exact Name of Registrant as Specified in its Charter) Delaware 04-2623104 (State or other jurisdiction of incorporation or organization) 555 Turnpike Street Canton, MA 02021 (Address of principal executive offices) (Zip Code) (I.R.S. Employer Identification No.) Registrant's telephone number, including area code: (781) 828-9300 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ...

Financial Data and Key Metrics Changes - Net sales for Q2 2023 were $140 million, down from $144.6 million in Q2 2022, reflecting a decrease in dollars per transaction due to inflationary pressures [26][27] - Gross margin rate was 50.3%, down from 52.1% in the same quarter last year, attributed to a decline in merchandise margin and increased occupancy costs [28][29] - Adjusted EBITDA margin was 16.4% or $22.9 million for Q2, lower than last year's 17.9%, but still a mid-double-digit margin in the current sales environment [34] Business Line Data and Key Metrics Changes - Comp sales for stores decreased by 1.4% in Q2, with a slight improvement in performance as the quarter progressed [9][10] - Tailored clothing sales increased by 4% year-over-year, making up 16% of total sales penetration compared to 15% last year [12] - Private brands accounted for approximately 55% of sales, while national brands accounted for 45% [13] Market Data and Key Metrics Changes - Inventory balance decreased by 9.5% compared to last year and down 20.7% versus 2019, indicating improved inventory turnover [11] - Clearance inventory at the end of Q2 2023 was 9.3%, compared to 6.9% at the end of Q2 2022, still below the target of 10% [12] Company Strategy and Development Direction - The company aims to accelerate growth through three distinct pursuits, focusing on brand awareness, store development, and collaborations with other retail brands [8][65] - Plans to open three new stores in 2023, with expectations to grow to 10 stores in 2024 and 15 to 20 in 2025, addressing gaps in market coverage for big and tall consumers [65][66] - The company is investing in marketing to improve brand awareness, with expectations of increased advertising spend leading to low double-digit growth over the next few years [56][63] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges impacting growth but remains optimistic about future growth opportunities [8][22] - The company is focused on improving customer engagement and retention through personalized marketing and enhanced customer experience [17][19] - Management believes that the total addressable market for big and tall men is $23 billion, indicating significant growth potential [61] Other Important Information - The company terminated its legacy pension plan, which is expected to strengthen its balance sheet and reduce P&L volatility [35][36] - Cash and short-term investments grew to $62.8 million compared to $22.2 million a year ago, with no outstanding debt [38][39] Q&A Session Summary Question: Future buyback plans - Management indicated that while they were aggressive with buybacks, the focus is currently on long-term growth plans rather than immediate buybacks [78][81] Question: Guidance on gross margin - Management expects gross margin to improve in the second half due to lapping loyalty programs and a shift towards private label products [82][84] Question: Success of the loyalty program - The loyalty program has shown better revenue penetration among engaged customers, but management is working to improve engagement among lower-tier customers [86][89] Question: Long-term impact of weight loss drugs - Management views weight loss drugs as a potential catalyst for business, as they may lead to increased clothing purchases for changing sizes [113][117] Question: Capital allocation and cash taxes - Management is focused on evaluating hurdle rates for investments and expects to pay very little in federal or state cash income tax in fiscal 2023 due to net operating loss carry-forwards [119]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 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 July 29, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 01-34219 DESTINATION XL GROUP, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 04-2623104 (State or other jurisdiction of incorporation or organiza ...

Financial Data and Key Metrics Changes - Net sales for Q1 were $125.4 million, down from $127.7 million in the same quarter last year, with a comparable sales growth of 0.6% after adjusting for closed stores [9][22] - Gross margin decreased to 48.6% from 50% year-over-year, attributed to a decline in merchandise margin and occupancy costs [84][89] - SG&A expenses as a percentage of sales increased to 38.5% from 36.5% in the prior year, reflecting higher payroll costs due to new positions [85] Business Line Data and Key Metrics Changes - Store sales, which account for about 70% of total business, increased by 1.5%, while the direct business, making up the remaining 30%, saw a decline of 1.6% [9] - Tailored clothing represented 21% of Q1 business, up from 18% in the same quarter last year, indicating improved in-stock positions [80] Market Data and Key Metrics Changes - The company experienced a slowdown in traffic in March and April, consistent with broader macroeconomic challenges affecting consumer spending [9][77] - Sales growth was noted in mobile app and online marketplaces, indicating a shift in consumer shopping behavior [9] Company Strategy and Development Direction - The company is focused on strategic transformational changes to increase market share and attract new customers, emphasizing fit, assortment, and exclusivity [3][24] - Plans to remodel existing stores and open up to 50 new stores over the next 3 to 5 years, aiming to enhance customer engagement and drive sales [8][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment, including inflation and rising interest rates, but expressed optimism about the company's growth trajectory due to its unique market positioning [77][78] - The company is currently trending towards the lower end of its previously reported guidance for fiscal 2023, with expectations of low single-digit or negative comps for Q2 [31] Other Important Information - The company has a strong cash position with $46 million in cash and short-term investments, compared to $7.5 million a year ago, and no outstanding debt [11] - A $15 million stock repurchase program was authorized, with plans to begin executing purchases in Q2 [86] Q&A Session Summary Question: What changes were made in the remodel efforts and their impact on sales? - The company remodeled two stores, which have outperformed regional peers, with improvements in traffic and net promoter scores [35] Question: How have tax refunds impacted customer spending? - Management noted some impact from tax refunds but indicated it was not as pronounced as in other retailers [58] Question: What are the major risks in the company's strategy? - The primary risk identified is the economy, with management acknowledging the challenges of navigating a non-normal year [46] Question: How does the company plan to achieve future growth? - The company believes it can capture market share from competitors by providing a unique shopping experience tailored to the big and tall consumer [47]

Financial Performance - Total sales for the first quarter of fiscal 2023 were $125.4 million, a decrease from $127.7 million in the first quarter of fiscal 2022[97]. - Net income for the first quarter of fiscal 2023 was $7.0 million, or $0.11 per diluted share, compared to $13.4 million, or $0.20 per diluted share, in the prior year[98]. - For Q1 fiscal 2023, the company reported net income of $7.0 million, or $0.11 per diluted share, down from $13.4 million, or $0.20 per diluted share in Q1 fiscal 2022[112]. - Adjusted net income for Q1 fiscal 2023 was $7.0 million, or $0.11 per diluted share, compared to $9.7 million, or $0.14 per diluted share in Q1 fiscal 2022[113]. - Adjusted EBITDA for Q1 fiscal 2023 was $12.6 million, with an adjusted EBITDA margin of 10.1% compared to 13.5% in Q1 fiscal 2022[132]. Sales and Revenue - Comparable sales increased by 0.6%, with store sales up 1.5% and direct sales down 1.6%[101]. - Gross margin rate for the first quarter of fiscal 2023 was 48.6%, down from 50.0% in the first quarter of fiscal 2022[103]. - SG&A expenses as a percentage of sales increased to 38.5% from 36.5% year-over-year, with a dollar increase of $1.7 million[105][106]. Cash Flow and Investments - Cash and investments at April 29, 2023, were $46.0 million, up from $7.5 million at April 30, 2022, with no debt outstanding[99]. - Cash flow from operations decreased to $(4.2) million in Q1 fiscal 2023, compared to $(1.5) million in Q1 fiscal 2022, primarily due to lower earnings[118]. - Free cash flow for Q1 fiscal 2023 was $(5.9) million, down from $(2.7) million in Q1 fiscal 2022[119]. Inventory Management - Inventory was down 11% compared to pre-pandemic levels, with turnover up over 25%[99]. - Inventory increased by approximately $3.4 million to $100.3 million as of April 29, 2023, compared to $96.9 million a year earlier, with inventory turnover up over 25% from pre-pandemic levels[114]. Future Plans and Capital Expenditures - The company plans to open 3 new DXL stores and convert 10 Casual Male stores to DXL format by the end of fiscal 2023, with potential for 50 new DXL stores over the next five years[125][126]. - Capital expenditures for fiscal 2023 are expected to range from $19.0 million to $21.0 million[126]. Stock and Credit Facilities - The Company approved a $15.0 million stock repurchase program in March 2023, expected to begin in the second quarter of fiscal 2023[100]. - The company has a $125.0 million revolving credit agreement with no outstanding borrowings as of April 29, 2023, and an average unused excess availability of approximately $82.5 million during Q1 fiscal 2023[123][124]. Marketing Expenses - Marketing costs for the first quarter were 5.5% of sales, with expectations of approximately 5.7% for fiscal 2023[107]. Taxation - The effective tax rate for the first quarter of fiscal 2023 was 26.6%, compared to 0.8% in the prior year due to the release of a valuation allowance against deferred tax assets[111].

Destination XL Group, Inc. (NASDAQ:DXLG) Q4 2022 Earnings Conference Call March 16, 2023 9:00 AM ET Company Participants Shelly Mokas - VP, SEC and Financial Reporting Harvey Kanter - President and CEO Peter Stratton - CFO Conference Call Participants Jeremy Hamblin - Craig Hallum Mike Baker - D.A. Davidson Operator Good day and thank you for standing by. Welcome to the Destination XL Group, Incorporated Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 28, 2023 (Fiscal 2022) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 01-34219 DESTINATION XL GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 04-2623104 (State or oth ...

Destination XL Group, Inc. (NASDAQ:DXLG) Q3 2022 Results Conference Call November 17, 2022 9:00 AM ET Company Participants Shelly Mokas - VP, SEC and Financial Reporting Harvey Kanter - President and CEO Peter Stratton - CFO Conference Call Participants Mike Baker - D.A. Davidson Jeremy Hamblin - Craig Hallum Operator Good day, ladies and gentlemen, and welcome to the Destination XL Group Incorporated, Third Quarter Fiscal 2022 Financial Results Conference Call. Today's call is being recorded. At this time, ...

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 October 29, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANG ...