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Destination XL Q2 comparable sales increase 3.3 percent


Destination XL Q2 comparable sales increase 3.3 percent

Total sales for the second quarter of fiscal 2018 at Destination XL
increased 0.9 percent to 122.2 million dollars. The company said, increase
of 1.1 million dollars in total sales was due to a comparable sales
increase of 3.3 percent or 3.8 million dollars and an increase of 2
million dollars in non-comparable sales from DXL stores open less than 13
months partially offset by closed stores of 2.3 million dollars and a 1.9
million dollars shift in calendar weeks due to the 53rd week in fiscal
2017.

“We are pleased to report our third consecutive quarter of positive
comparable sales growth with a second quarter increase of 3.3 percent. This
was another quarter of successful execution against our strategic
initiatives and we are well positioned for continued progress in the second
half,” said David Levin, President and Chief Executive Officer in a
statement.

DXL eliminates 56 staff positions to drive profitability

In May 2018, the company added that it executed a corporate
restructuring to accelerate the company’s path to profitability by better
aligning its expense structure with its revenues. The Company eliminated
56 positions, which represented approximately 15 percent of its corporate
work force or 2 percent of the total work force. Of the 56 positions, 36
positions were terminations and 20 positions were open positions that will
not be filled.

As a result of this restructuring, the company expects to realize
savings of approximately 5.6 million dollars in SG&A expenses in fiscal
2018, which is reflected in our earnings guidance. For the second quarter
the company’s net loss was 1.2 million dollars or 0.02 dollar per diluted
share, compared with 3.7 million dollars or 0.08 dollar per diluted share,
for the second quarter of fiscal 2017. Adjusted net income per share,
assuming a normalized tax rate of 26 percent, was 0.01 dollar per diluted
share, as compared to 0.03 dollar per diluted share for the second quarter
2017.

Adjusted EBITDA was 8.8 million dollars compared to 6.7 million dollars
for the second quarter of fiscal 2017. Gross margin rate, inclusive of
occupancy costs, was 46.3 percent as compared to 46.1 percent for the
second quarter of fiscal 2017. The 20 basis point improvement was due to a
30 basis point decrease in occupancy costs as a percent of sales partially
offset by a 10 basis point decrease in merchandise margins.

DXL expects FY18 comparable sales to rise between 1 to 3 percent

For fiscal 2018, based on a 52-week year, the company expects sales
of 462 million dollars to 472 million dollars, with a total company
comparable sales increase of approximately 1percent to 3 percent, gross
margin rate of approximately 44.5 percent, net loss, on a GAAP basis,
of 13.2 to 18.2 million dollars or 0.27 dollar to 0.37 dollar per diluted
share and adjusted net loss of 0.11 dollar to 0.18 dollar per diluted
share.

Picture:Facebook DXL men’s apparel



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