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Destination XL swings to Q4 loss; plans 40 new stores

Canton, Mass. – Destination XL Group Inc. reported a net loss of $55.1 million for its fourth quarter, compared to net income of $4.2 million in the year-ago period. The chain cited a sluggish retail environment, a shorter holiday selling season and adverse weather conditions as contributing to the disappointing results.

Fourth quarter net sales declined almost 6% to $108.5 million, from $114.9 million. However, same-store sales rose 13.6%. In fiscal 2014, DXL plans to open approximately 40 DXL stores and to close approximately the same number of Casual Male XL stores. Some of the new DXL stores will be smaller-sized locations in smaller markets.

"Since accelerating the opening of DXL stores and closing our Casual Male stores nearly a year and a half ago, we have made significant progress in our transformation," said David Levin, president and CEO of Destination XL. "During the past year, we opened half of the 102 DXL stores that are currently in operation. From that activity, we've been able to analyze a significant amount of empirical data with respect to the effectiveness of our store openings and closings. We have better insights into the optimal location and size of DXL stores and the importance of opening new stores prior to the Q4 holiday season.”

During the full fiscal year 2013, net loss was $59.8 million, compared with net income of $6.1 million for fiscal 2012. For fiscal 2013, total sales were $388 million, down 4% from $399.6 million for fiscal 2012. Same-store sales declined 3%

Looking ahead, Destination XL forecasts a comparable sales increase of approximately 5.6% and total sales in the range of $405 million to $410 million.
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