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Destination XL Group, Inc. Reports Fiscal 2024 Fourth Quarter and Full-Year Financial Results
DXLGDestination XL (DXLG) GlobeNewswire·2025-03-20 11:00

Core Insights - Destination XL Group, Inc. reported a total sales of 467.0millionforfiscal2024,adecreaseof10.5467.0 million for fiscal 2024, a decrease of 10.5% from 521.8 million in fiscal 2023, primarily due to a 10.6% decline in comparable sales [6][10][22] - The company experienced a net income of 3.1million,or3.1 million, or 0.05 per diluted share, compared to 27.9million,or27.9 million, or 0.43 per diluted share, in fiscal 2023 [22][24] - Adjusted EBITDA for fiscal 2024 was 19.9million,downfrom19.9 million, down from 55.9 million in fiscal 2023, reflecting a challenging year for the men's apparel sector [25][26] Financial Performance - Total sales for the fourth quarter of fiscal 2024 were 119.2million,down13.1119.2 million, down 13.1% from 137.1 million in the fourth quarter of fiscal 2023 [6][9] - Comparable sales for the fourth quarter decreased by 8.7%, with store sales down 6.7% and direct business down 12.7% [9][10] - The gross margin for fiscal 2024 was 46.5%, a decrease of 190 basis points from 48.4% in fiscal 2023, primarily due to increased occupancy costs [12][11] Operational Highlights - The company maintained a strong operating regimen, achieving a positive net income and free cash flow despite lower sales [4] - Cash flow from operations for fiscal 2024 was 29.6million,downfrom29.6 million, down from 49.6 million in fiscal 2023 [26] - The company repurchased 4.9 million shares of common stock for 13.7millionduringfiscal2024[33]StrategicInitiatives−In2024,thecompanyconductedconsumerresearchtoexplorebrandawarenessandtrends,whichmaydrivelong−termsalesgrowth[5]−ThecompanyopenedsevennewstoresandupgradeditseCommerceplatformtoenhancecustomerexperience[5][36]−Forfiscal2025,thecompanyplanstofocusonexecutingitsstrategicplanwhilemonitoringmacroeconomicfactorsandpotentialtariffimpacts[6][39]MarketOutlook−Thecompanyexpectscomparablesalestograduallyimprovethroughoutfiscal2025,movingfromalowdouble−digitnegativeinthefirstquartertoapositiveresultinthesecondhalfoftheyear[38]−ThecompanyhasminimalexposuretotariffsinChina,Mexico,andCanada,whichcollectivelyrepresentlessthan513.7 million during fiscal 2024 [33] Strategic Initiatives - In 2024, the company conducted consumer research to explore brand awareness and trends, which may drive long-term sales growth [5] - The company opened seven new stores and upgraded its eCommerce platform to enhance customer experience [5][36] - For fiscal 2025, the company plans to focus on executing its strategic plan while monitoring macroeconomic factors and potential tariff impacts [6][39] Market Outlook - The company expects comparable sales to gradually improve throughout fiscal 2025, moving from a low double-digit negative in the first quarter to a positive result in the second half of the year [38] - The company has minimal exposure to tariffs in China, Mexico, and Canada, which collectively represent less than 5% of its sourced products [6][39] - The company anticipates capital expenditures for fiscal 2025 to range from 19.0 million to $21.0 million, focusing on store openings and conversions [36]