Destination Xl sees more room for expansion

Specialty men’s retailer Destination XL Inc. reported Thursday that it shrank its net loss in the second quarter.

The company also raised its potential store count from 250 to 400. As a result, the retailer expects to open 30 to 40 DXL stores per year through fiscal 2020.

During fiscal 2015, Destination XL plans to open approximately 30 DXL retail and eight DXL outlet stores and close approximately 41 Casual Male XL and three Rochester clothing stores.

For the second quarter, the chain reported net loss of $1 million, compared to $4 million the same quarter from the prior fiscal year.

Improved occupancy costs and reduced markdowns helped Destination XL move closer toward the black. Total sales rose 10% to $114.1 million, from $104.2 million, aided by higher traffic and increased transactions as well as same-store sales growth of 9.2%.

During the full fiscal year, Destination XL expects total sales in the range of $438 to $443 million and a total same-sales increase of approximately 5.6%.