Destination XL (DXLG) - 2026 Q1 - Quarterly Results

Financial Performance - Total sales for Q1 fiscal 2025 were $105.5 million, down 8.6% from $115.5 million in Q1 fiscal 2024, with comparable sales decreasing by 9.4%[5] - Net loss for Q1 fiscal 2025 was $(1.9) million, or $(0.04) per diluted share, compared to net income of $3.8 million, or $0.06 per diluted share in Q1 fiscal 2024[20] - Adjusted EBITDA for Q1 fiscal 2025 was $0.1 million, a significant decrease from $8.2 million in Q1 fiscal 2024[21] - Gross margin rate for Q1 fiscal 2025 was 45.1%, down from 48.2% in Q1 fiscal 2024, primarily due to increased occupancy costs and markdown activity[10] - SG&A expenses as a percentage of sales increased to 45.0% in Q1 fiscal 2025 from 41.1% in Q1 fiscal 2024[13] - Free cash flow before capital expenditures for store development was $(14.5) million for Q1 fiscal 2025, compared to $(4.6) million in Q1 fiscal 2024[50] Cash and Investments - Cash and investments decreased to $29.1 million as of May 3, 2025, from $53.2 million as of May 4, 2024, reflecting $13.6 million in share repurchases[27] - Cash and cash equivalents decreased to $8.1 million as of May 3, 2025, down from $11.9 million on February 1, 2025[46] Inventory Management - Inventory decreased by approximately $5.8 million to $85.5 million as of May 3, 2025, compared to $91.2 million as of May 4, 2024[28] - Inventory levels as of May 3, 2025, were $85.5 million, an increase from $75.5 million on February 1, 2025, but a decrease from $91.2 million a year earlier[46] Future Outlook - The company expects a single-digit decrease in comparable sales for Q2 fiscal 2025, with a return to positive results in the second half of the fiscal year[9] - The company anticipates that the impact of current tariffs on financial results for fiscal 2025 could increase costs by less than $2.0 million, or approximately 40 basis points as a percentage of sales[40] Expansion Plans - FiTMAP sizing technology is currently in 52 DXL retail locations, with plans to expand to 85 stores by the end of fiscal 2025 and up to 200 stores by the end of fiscal 2027[30] - The company plans to open six additional DXL stores during fiscal 2025, with capital expenditures expected to range from $19.0 million to $21.0 million[29] Sales Breakdown - For Q1 fiscal 2025, direct sales were $29.1 million, representing 27.5% of total sales, down from $34.6 million or 30.0% in Q1 fiscal 2024[31] - Total sales for the three months ended May 3, 2025, were $105.5 million, a decrease from $115.5 million in the same period last year[45] - The company reported a net loss of $1.9 million for Q1 fiscal 2025, compared to a net income of $3.8 million in Q1 fiscal 2024[48] - Adjusted EBITDA for Q1 fiscal 2025 was $0.1 million, significantly lower than $8.2 million in Q1 fiscal 2024, resulting in an adjusted EBITDA margin of 0.1% compared to 7.1%[48]