Destination XL posts Q3 loss, will open new DXL stores

Canton, Mass. – Destination XL posted a loss of $6.3 million in the third quarter of fiscal 2014, up from a loss of $4.1 million the same quarter a year earlier. Transition costs, including lease exits and pre-opening costs, contributed to the growing loss.



Total sales rose 5% to $93.6 million from $88.7 million. The retailer plans to open approximately 41 stores in its DXL format and close approximately 46 Casual Male XL and 2 Rochester Clothing stores for fiscal 2014, and have 200-250 DXL stores open by fiscal 2017. For fiscal 2014, Destination XL expects to post a net loss.



During the quarter, Destination XL rolled out new technology that enables nearly 300 stores to fulfill online orders that cannot be fulfilled in the distribution center. The company said its omnichannel offering is evolving.



David Levin, president and CEO of Destination XL, focused on positive aspects of the quarter in his comments.



"Destination XL delivered strong third-quarter results, driven by our sixth consecutive quarter of double-digit comparable sales increases at our DXL stores," said Levin. "This growth is particularly impressive, given that it compares with an 11.3% comparable sales increase from the third quarter a year ago. As we continue to roll out the DXL concept, awareness of our brand continues to rise and DXL store traffic is increasing.”