Destination XL (DXLG)

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Destination XL (DXLG) - 2021 Q1 - Earnings Call Transcript
2021-05-27 18:44
Destination XL Group, Inc. (NASDAQ:DXLG) Q1 2021 Earnings Conference Call May 27, 2021 9:00 AM ET Company Participants Shelly Mokas - Director of Financial Reporting, SEC Compliance Harvey Kanter - President, Chief Executive Officer and Director Peter Stratton - Executive Vice President, Chief Financial Officer and Treasurer Conference Call Participants Eric Beder - SCC Research Alex Silverman - AWM Investments Michael Baker - D.A. Davidson Raphi Savitz - RYS Advisors Operator Ladies and gentlemen, thank yo ...
Destination XL (DXLG) - 2022 Q1 - Quarterly Report
2021-05-26 16:00
[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial information, including statements, MD&A, market risk, and controls [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited consolidated financial statements for the quarter ended May 1, 2021, covering balance sheets, income, cash flows, and notes [Consolidated Balance Sheets](index=2&type=section&id=Consolidated%20Balance%20Sheets) This table provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific quarter-end dates | Balance Sheet Highlights (in thousands) | May 1, 2021 (in thousands) | January 30, 2021 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $5,843 | $18,997 | | Inventories | $88,390 | $85,028 | | Total current assets | $105,285 | $114,130 | | Total assets | $289,685 | $306,755 | | **Liabilities & Equity** | | | | Borrowings under credit facility | $33,371 | $59,521 | | Total current liabilities | $128,865 | $155,035 | | Long-term debt, net | $16,669 | $14,869 | | Total liabilities | $280,201 | $310,832 | | Total stockholders' equity (deficit) | $9,484 | $(4,077) | [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) This table summarizes the company's financial performance over the quarter, detailing sales, gross profit, operating income, and net income | Income Statement (in thousands, except per share) | Three Months Ended May 1, 2021 (in thousands) | Three Months Ended May 2, 2020 (in thousands) | | :--- | :--- | :--- | | Sales | $111,494 | $57,227 | | Gross profit | $50,833 | $13,214 | | Operating income (loss) | $9,867 | $(40,965) | | Net income (loss) | $8,697 | $(41,726) | | Net income (loss) per share - basic and diluted | $0.14 | $(0.82) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This table details the cash inflows and outflows from operating, investing, and financing activities for the reported periods | Cash Flow Summary (in thousands) | Three Months Ended May 1, 2021 (in thousands) | Three Months Ended May 2, 2020 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used for) operating activities | $7,765 | $(16,811) | | Net cash used for investing activities | $(803) | $(1,590) | | Net cash provided by (used for) financing activities | $(20,116) | $40,210 | | Net increase (decrease) in cash and cash equivalents | $(13,154) | $21,809 | | Cash and cash equivalents, end of period | $5,843 | $26,147 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies, financial items, and COVID-19 impact, noting Q1 2021 results may not be comparable to Q1 2020 - The COVID-19 pandemic adversely affected fiscal 2020 operations, including temporary store closures and furloughs, making Q1 2021 financial results potentially incomparable to Q1 2020[22](index=22&type=chunk) | Disaggregation of Revenue (in thousands) | Q1 2021 (in thousands) | % of Total | Q1 2020 (in thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Store sales | $74,880 | 69.1% | $32,327 | 58.6% | | Direct sales | $33,542 | 30.9% | $22,882 | 41.4% | | **Retail segment** | **$108,422** | | **$55,209** | | | Wholesale segment | $3,072 | | $2,018 | | | **Total Sales** | **$111,494** | | **$57,227** | | - On March 16, 2021, the company refinanced its existing **$15.0 million** FILO loan and secured a new **$17.5 million** FILO loan expiring May 24, 2023, with an **8.5%** interest rate as of May 1, 2021[40](index=40&type=chunk) - On February 5, 2021, the company sold **11,111,111** shares of common stock in a registered direct offering, generating **$5.0 million** in gross proceeds and **$4.4 million** net of costs[51](index=51&type=chunk)[65](index=65&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses Q1 2021 financial results, highlighting strong sales recovery, improved margins, cost savings, and strengthened liquidity [Results of Operations](index=19&type=section&id=Results%20of%20Operations) This section details Q1 2021 operational performance, highlighting sales recovery, improved gross margins, and reduced expenses leading to net income | Key Financial Metrics (in millions, except per share) | Q1 2021 (in millions) | Q1 2020 (in millions) | Q1 2019 (in millions) | | :--- | :--- | :--- | :--- | | Sales | $111.5 | $57.2 | $113.0 | | Gross Margin % | 45.6% | 23.1% | 43.7% | | SG&A % of Sales | 33.3% | 56.1% | 39.5% | | Net Income (Loss) | $8.7 | $(41.7) | $(3.1) | | Adjusted EBITDA | $13.7 | $(18.9) | $4.8 | | Diluted EPS | $0.14 | $(0.82) | $(0.06) | - Strong Q1 2021 performance was driven by accelerated sales, resulting in **3.7%** comparable sales growth versus pre-pandemic Q1 2019, with direct business up **40.7%** while stores were down **6.7%**[62](index=62&type=chunk) - Significant cost structure improvements include over **$16.1 million** in expected savings from restructuring **115** store leases and a **$7.5 million** reduction in SG&A costs compared to Q1 2019[62](index=62&type=chunk) - A restructured promotional strategy, shifting from broad-based deep discounts to targeted, full-priced messaging, significantly reduced markdown dollars and improved the gross margin rate[62](index=62&type=chunk)[63](index=63&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly strengthened in Q1 2021 through a stock offering, debt refinancing, and improved operating cash flow - Free cash flow improved by **$25.4 million** to **$7.0 million** for Q1 2021, compared to **$(18.4) million** for Q1 2020, driven by improved earnings and faster inventory turnover[72](index=72&type=chunk)[79](index=79&type=chunk) | Total Debt Outstanding (in thousands) | May 1, 2021 (in thousands) | | :--- | :--- | | Credit facility (Gross) | $33,560 | | FILO Loan (Gross) | $17,500 | | **Total Gross Debt** | **$51,060** | | Less: Debt Issuance Costs | $(946) | | **Total Net Debt** | **$50,114** | - As of May 1, 2021, the company had **$51.1 million** of unused excess availability under its credit facility, a significant increase from **$16.8 million** at May 2, 2020[65](index=65&type=chunk)[75](index=75&type=chunk) - The company actively manages its store portfolio, having renegotiated **115** store leases since fiscal 2020, projected to yield over **$16.1 million** in savings over lease terms[77](index=77&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) The company's primary market risk exposure is interest rate fluctuations on its variable-rate debt, with foreign currency risk deemed immaterial - A sensitivity analysis as of May 1, 2021, indicates a **50 basis point** interest rate increase would result in an approximate **$344,000** annualized increase in interest expense[83](index=83&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded the company's disclosure controls and procedures were effective as of May 1, 2021, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of May 1, 2021, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[84](index=84&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[85](index=85&type=chunk) [PART II. OTHER INFORMATION](index=26&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information, including legal proceedings, risk factors, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings.) The company is subject to ordinary course legal proceedings, which management believes will not materially impact its financial position or results of operations - Management believes the resolution of current legal proceedings will not materially adversely impact the company's future results of operations or financial position[87](index=87&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors.) No material changes have occurred to the risk factors previously disclosed in the company's Fiscal 2020 Annual Report on Form 10-K - No material changes to the risk factors have occurred as previously disclosed in the Fiscal 2020 Annual Report[87](index=87&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the Form 10-Q, including employment and credit agreements, stock purchase agreements, and officer certifications
Destination XL (DXLG) - 2020 Q4 - Earnings Call Transcript
2021-03-18 17:38
Destination XL Group, Inc. (NASDAQ:DXLG) Q4 2020 Results Earnings Conference Call March 18, 2021 9:00 AM ET Company Participants Shelly Mokas - Director of Financial Reporting, SEC Compliance Harvey Kanter - President, Chief Executive Officer, Director Peter Stratton - Executive Vice President, Chief Financial Officer, Treasurer Conference Call Participants Eric Beder - SCC Research Alex Silverman - AWM Investments Operator Ladies and gentlemen, thank you for standing by and welcome to the Q4 2020 Destinati ...
Destination XL (DXLG) - 2021 Q4 - Annual Report
2021-03-18 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 30, 2021 (Fiscal 2020) 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 organization)(IRS Employer Identification No.) 555 Turnpike Street, Canton, MA 02021 (Address of principa ...
Destination XL (DXLG) - 2020 Q3 - Earnings Call Transcript
2020-11-20 19:51
Financial Data and Key Metrics Changes - Comparable sales for Q3 2020 were down 20.5% year-over-year, an improvement from a 38.6% decline in Q2 2020 [12] - Store sales decreased by 31.5%, while DXL.com sales increased by 28.4%, with total direct sales up 18.2% [12] - Gross margin rate was 36.5%, down from 41.1% in Q3 2019, reflecting a 460-basis point decrease [37] - SG&A expenses were $32.8 million, or 38.5% of sales, compared to $42.1 million, or 39.5% of sales, in the prior year [38] - Adjusted EBITDA was negative $1.7 million, compared to positive $1.7 million in Q3 2019 [40] Business Line Data and Key Metrics Changes - Direct sales accounted for 33.4% of total retail revenue, with stores fulfilling $10.6 million worth of e-commerce demand, an increase of 87.3% from last year [12][16] - Casual sportswear and loungewear drove business, while tailored clothing remained challenging [22] - Inventory levels decreased by over 21% from last year's Q3, with a focus on conservative inventory management [26] Market Data and Key Metrics Changes - October sales momentum slowed by 600 basis points due to COVID-19 flare-ups and other distractions [12] - The company experienced a good September but faced a decline in October, attributed to external factors like wildfires and the election [56] Company Strategy and Development Direction - The company is focused on cash management and has implemented a corporate restructuring to align costs with lower sales levels, estimating annualized savings of $9.7 million [19][20] - DXL aims to enhance its omnichannel capabilities, with a significant focus on e-commerce and direct fulfillment from stores [17][28] - The company is committed to diversity and inclusion initiatives, including a CEO Advisory Council and ongoing training programs [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for recovery, emphasizing the importance of maintaining liquidity and financial flexibility [45] - The company anticipates a slow improvement in sales trends and continued growth in its direct business [45] - Management acknowledged the challenges posed by the pandemic but remains hopeful for a return to normalcy with the potential availability of a vaccine [47] Other Important Information - The company has eliminated 101 corporate positions, representing 29% of its corporate workforce, and reduced field personnel by 1,078 positions, or 54% [20] - The company is actively negotiating with landlords to reduce occupancy costs and has successfully secured rent abatements and deferrals [21][41] Q&A Session Summary Question: How is the company responding to the changing dynamics of Black Friday and customer traffic? - The company has started promotions earlier and segmented offers to drive traffic while being cautious about over-promotion [49][50] Question: Can you provide insights on sales performance in October and November? - October sales trailed off unexpectedly, but there has been a recent material change in customer behavior as Thanksgiving approaches [56][57] Question: What is the composition of the increase in accrued expenses? - The increase is attributed to restructuring accruals and long-term incentive accruals [58] Question: How does the company view its inventory structure moving forward? - The company aims to maintain lower inventory levels while balancing the need to drive revenue [53][67] Question: Can you elaborate on the relationship with Amazon? - The relationship with Amazon is seen as having significant potential, with the company expanding its offerings within Amazon's private brand program [68][69]
Destination XL (DXLG) - 2021 Q3 - Quarterly Report
2020-11-20 17:58
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 October 31, 2020 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 (State or other jurisdiction of incorporation or organization) 55 ...
Destination XL (DXLG) - 2020 Q2 - Earnings Call Transcript
2020-08-27 18:08
Destination XL Group, Inc. (NASDAQ:DXLG) Q2 2020 Earnings Conference Call August 27, 2020 9:00 AM ET Company Participants Nitza McKee - ICR Harvey Kanter - President and Chief Executive Officer Peter Stratton - Chief Financial Officer Conference Call Participants Eric Beder - SCC Research Alex Silverman - AWM Investments Operator Ladies and gentlemen, thank you for standing by and welcome to the Second Quarter 2020 Destination XL Group, Incorporated Earnings Call. At this time, all participants are in a lis ...
Destination XL (DXLG) - 2021 Q2 - Quarterly Report
2020-08-27 16:20
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 August 1, 2020 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) Canton, MA (Address of principal executive offices) (Zip Code) | --- | --- | ...
Destination XL (DXLG) - 2020 Q1 - Earnings Call Transcript
2020-06-04 18:50
Destination XL Group, Inc. (NASDAQ:DXLG) Q1 2020 Earnings Conference Call June 4, 2020 9:00 AM ET Company Participants Nitza McKee - IR, ICR Harvey Kanter - President & CEO Peter Stratton - CFO Conference Call Participants Eric Beder - SCC Research Glenn Krevlin - Glenhill Capital Advisors Operator Good day ladies and gentlemen, and welcome to the DXLG Fiscal First Quarter Year 2020 Financial Results Conference Call. Today’s call is being recorded. [Operator Instructions] At this time, I would like to turn ...
Destination XL (DXLG) - 2021 Q1 - Quarterly Report
2020-06-04 16:53
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 May 2, 2020 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) Canton, MA (Address of principal executive offices) (Zip Code) | --- | --- | |- ...