Destination XL (US:DXLG)2024-11-22 12:07Financial Performance - Total sales for Q3 fiscal 2024 were $107.5 million, down 9.8% from $119.2 million in Q3 fiscal 2023, with comparable sales decreasing by 11.3%[3] - 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[13] - Adjusted EBITDA for Q3 fiscal 2024 was $1.0 million, or 1.0% of sales, down from $8.6 million, or 7.3% of sales in Q3 fiscal 2023[4] - Gross profit for the three months ended November 2, 2024, was $48.4 million, down from $56.6 million in the same period last year[36] - The company reported a net loss of $1.8 million for the three months ended November 2, 2024, compared to a net income of $4.0 million in the same period last year[36] - The projected net income (GAAP basis) for Fiscal 2024 is $5.6 million, equating to $0.09 per diluted share[47] Cash and Investments - Cash and investments totaled $43.0 million as of November 2, 2024, down from $60.4 million as of October 28, 2023, with no outstanding debt[16] - Cash and cash equivalents decreased to $7.1 million as of November 2, 2024, down from $10.7 million as of October 28, 2023[40] - Free Cash Flow (non-GAAP basis) for the nine months ended October 28, 2023, was $22.7 million, after capital expenditures for store development of $3.8 million[44] - Cash flow from operating activities (GAAP basis) for the nine months ended October 28, 2023, was $33.1 million[44] Sales and Guidance - The company revised its full-year sales guidance for fiscal 2024 to approximately $470.0 million, reflecting a comparable sales decrease of about 10%[21] - The projected sales for Fiscal 2024 (low-end of guidance) is $470.0 million[47] - For Q3 fiscal 2024, direct sales were $31.3 million, representing 29.1% of retail segment sales, down from $36.2 million or 30.4% in Q3 fiscal 2023[20] Expenses and Margins - 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[11] - Gross margin rate for Q3 fiscal 2024 was 45.1%, down 240 basis points from 47.5% in Q3 fiscal 2023, primarily due to increased occupancy costs[9] - Adjusted EBITDA guidance was lowered to 4.5% from 6.0% due to cost deleveraging on a lower sales base[21] - The adjusted EBITDA margin as a percentage of sales for Fiscal 2024 is projected to be 4.5%[47] Store Openings and Strategic Initiatives - The company opened two new stores in Q3 fiscal 2024, bringing the total to four new stores year-to-date, with plans for four additional openings in Q4[7] - The company expects to open eight new stores in fiscal 2025, down from a previous expectation of ten[7] - The company plans to continue its strategic initiatives to enhance brand awareness and improve its eCommerce platform[30] - The new eCommerce platform is fully operational, with 100% of site traffic on the new platform, enhancing user experience and speed[7] Liabilities and Equity - Total liabilities and stockholders' equity as of November 2, 2024, was $381.3 million, an increase from $372.7 million as of October 28, 2023[39] - Inventories increased to $89.1 million as of November 2, 2024, compared to $99.9 million as of October 28, 2023[40] Other Financial Metrics - The company reported a loss on termination of retirement plans of $0.1 million for the three months ended October 28, 2023[42] - Adjusted EBITDA (non-GAAP basis) for the three months ended October 28, 2023, was $8.6 million, and for the nine months ended October 28, 2023, it was $44.2 million[42] - The adjusted EBITDA margin as a percentage of sales for the nine months ended October 28, 2023, was 11.5%[42]