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Destination XL (DXLG) - 2025 Q4 - Annual Results
Destination XL Destination XL (US:DXLG)2025-03-20 11:09

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]