Big and tall retailer finds fit with DXL format

Destination XL Group is seeing strong same-store sales growth from its stores branded as DXL as it continues to shift away from the smaller footprint Casual Male concept.



Destination XL Group, which bills itself as the largest omnichannel specialty retailer of big and tall men's apparel, said its total same-store sales increased 3.1%, but its 137 DXL stores open for more than 13 months grew comps 8.9%.



“Our excellent fourth-quarter and full-year financial results reflect the strength of the Destination XL model in an exceptionally challenging retail environment,” said President and CEO David Levin. “Our performance was consistent throughout 2015, on track with the expectations we laid out at the start of the year. The quarter actually started out slowly with a very warm November. However, typical winter weather returned in December, as did strong demand in our cold-weather categories, and sales continued to accelerate through the end of January.”



Total fourth quarter sales increased 3.8% to $124 million and full year sales increased 6.8% to $442.2 million. The company’s DXL stores drove the increase with comps up 9.7% on the year.



Despite improved sales, the company reported a loss of $1.4 million, or three cents a share, in the fourth quarter compared to a prior year profit of $1.6 million, or three cents a share. The net loss for the year was $8.4 million, of 17 cents a share, compared to a loss of $12.3 million, or 25 cents a share, the prior year.



Destination XL Group introduced the larger format DXL concept in 2010 with an expanded assortment of brands across a range of price points with an emphasis on service. After proving the concept, the past three years have seen the company ramp up the transition of its store portfolio to the DXL concept while de-emphasizing Casual Male. After opening 36 DXL stores last year, the company ended the year with 194 of its total 357 stores branded as DXL. That compares to three years earlier when 99 of its 359 stores were DXL. Conversely, the company’s Casual Male store count was reduced to 99 locations and the end of last year compared to 198 three years earlier.



That trend will continue in 2016 with 28 DXL stores due to open and 26 Casual Male stores expected to close.