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Destination XL the momentum — and store expansion — going


Destination XL increased its earnings guidance for fiscal 2015 after the men's big-and-tall retailer pre-announced increased profit and high single-digit same-store sales for the fourth quarter.

“Our DXL retail stores performed very well in the last two months of the quarter, with an expected comparable sales increase of more than 8.5% for the fourth quarter and more than 9.5% for the year,” said president and CEO David Levin. “Given our better-than-expected sales performance and our strong merchandise margins, we now expect improved top- and bottom-line results for fiscal 2015. Sales from our cold-weather assortments got off to a slow start in Q4, as a result of unseasonably warm weather. However, demand began to pick up in early December and continued to improve in January.”

Destination XL said last year the retailer expects to open 30 to 40 DXL stores per year through fiscal 2020. The company currently operates 440 stores.

As a result of the strong fourth quarter sales performance, the company has revised its earnings guidance for fiscal 2015:

• Sales for fiscal 2015 are expected to be approximately $442 million to $442.5 million, an increase from the company’s previous guidance range of $438.0 million to $440.0 million.

• EBITDA for fiscal 2015 is expected to be approximately $22.5 million to $23.5 million, an increase from previous guidance of $21 million to $22 million.

• The company expects its net loss to be between 17 cents and 20 cents per diluted share, compared with previous guidance of 20 cents to 23 cents per diluted share.

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