Specialty menswear retailer swings to profit in Q2

Destination XL Group Inc. reported a profit in its second quarter amid the ongoing strength of its DXL larger store format.



The retailer of big and tall apparel for men posted net income for the second quarter of $0.2 million, compared with a net loss of $1.0 million in the year ago period.



Total sales rose 3.3% to $117.9 million from $114.1 million last year. The increase of $3.8 million in total sales was primarily driven by a same-store sales increase of $2.6 million, or 4.6%, from the chain’s DXL stores.



On a comparable basis, total transactions in the DXL stores were up 3.2% over the prior-year second quarter.



Total same-store sales increased +2.4% on top of +6.7% in prior-year quarter.



151 DXL retail stores, open at least 13 months, had a +4.6% comparable sales increase on top of an +11.9% comparable sales increase in the prior-year quarter.



Destination XL Group Inc. (DXLG) on Thursday reported fiscal second-quarter net income of $199,000, after reporting a loss in the same period a year earlier.



The Canton, Massachusetts-based company said it had profit of less than 1 cent on a per-share basis.



The retailer of big-and-tall apparel posted revenue of $117.9 million in the period.



“Our positive second-quarter results reflect the fundamental strength of the DXL transformation, which drove growth in sales and profitability even as uncertainty weighed on consumer spending,” said president and CEO David Levin. “Our belief in the DXL transformation has never been stronger. The DXL customer is buying more and spending more per transaction, while our average sales per square foot continue to climb.”



Despite the improvements, the retailer said it has started to see a slowdown in traffic in the second quarter.



“Due to the macro headwinds in the current environment, we are taking a more cautious view of sales in the second half of the year,” Levin said. “However, we are confident in our ability to leverage our operating model, and we are maintaining our guidance in earnings and EBITDA.”



Destination XL expects full-year revenue in the range of $457 million to $463 million, compared with its previous guidance of $465.0 to $472.0 million. It expects total comparable sales increase in the range of 2.0% to 4.0%, compared with previous guidance of 4.8% to 5.5%.