Destination XL Group, Inc. Holiday Sales Results and Guidance
- Total sales decreased 23.9% to
$78.4 millioncompared to $103.1 millionfor the 9-week holiday sales period ended January 4, 2020.
- Comparable sales in our omni-channel retail business for the same period decreased 24.0%, primarily due to a decrease in comparable store sales of 38.1% which was partially offset by an increase in comparable sales from our direct business of 12.7%. Direct sales are defined as sales that originate online, whether through our website, at the store level or through a third party marketplace.
- The comparable increase in the direct business is driven by an increase in sales from our DXL.com website of 28.4%.
- Included in total sales are sales from our wholesale business of
$4.0 millionfor the 9-week holiday sales period compared to $3.4 millionfor the same period last year.
Based on the holiday sales results and expectations for the remainder of the fourth quarter, the Company expects total sales for fiscal 2020 of
“As we near the end of fiscal 2020, we look forward to the greater opportunities now ahead in fiscal 2021, having successfully accelerated our digital transformation and substantially increased our operating leverage during the pandemic. We believe that demand for apparel will gradually improve in fiscal 2021 and we look forward to serving our customer wherever and whenever he is ready to shop with us,” said
“Our plans for fiscal 2021 include expected sales of approximately
The Company plans to report its actual fourth-quarter and fiscal 2020 financial results on
Comparable sales in our omni-channel retail business include stores that have been opened for at least 13 months and our direct business. The Company has not carved-out prior year sales for periods where the stores were temporarily closed in fiscal 2020 due to the Covid-19 pandemic. Sales from our wholesale business are not part of the Company’s comparable sales calculation.
In addition to financial measures prepared in accordance with
The Company believes that adjusted EBITDA (calculated as earnings before interest, taxes, depreciation and amortization and excluding asset impairment charges, if applicable) is useful to investors in evaluating its performance and is a key metric to measure profitability and economic productivity. The Company is unable to reconcile the adjusted EBITDA guidance for fiscal 2020 or fiscal 2021 to net loss, because certain information necessary for these reconciliations is not available without unreasonable efforts. It is difficult to predict and/or is dependent on future events that are outside of our control. In particular, we are unable to reasonably predict potential asset impairments, because of the ongoing impact of the Covid-19 pandemic on our retail stores.
Free cash flow is a metric that management uses to monitor liquidity. Management believes this metric is important to investors because it demonstrates the Company’s ability to strengthen liquidity while supporting its capital projects and new store growth. Free cash flow is calculated as cash flow from operating activities, less capital expenditures and excludes the mandatory and discretionary repayment of debt. The following is a reconciliation of free cash flows (a non-GAAP measure) from cash flow from operating activities (the comparable GAAP measure):
|GAAP to NON-GAAP Free Cash Flow Reconciliation|
|(in millions)||Fiscal 2020 Guidance||Fiscal 2021 Guidance|
|Cash flow from operating activities (GAAP)||$||(1.8) - 0.2||$||>4.3|
|Free cash flow (non-GAAP)||$||(6.0) - (4.0)||$||> 0.0|
Certain statements and information contained in this press release constitute forward-looking statements under the federal securities laws, including statements regarding the Company’s expectations for sales, adjusted EBITDA and free cash flow for fiscal 2020 and guidance for sales, adjusted EBITDA and free cash flow for fiscal 2021. The discussion of forward-looking information requires the Company’s management to make certain estimates and assumptions regarding the Company's strategic direction and the effect of such plans on the Company's financial results, including management’s current expectations surrounding the pandemic, states remaining open and the ability to order and receive the necessary merchandise and the ability to achieve projected margins in order to support its fiscal 2021 guidance. The Company's actual results may differ materially from forward-looking statements made by the Company. The Company encourages readers of forward-looking information concerning the Company to refer to its filings with the
Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The Company undertakes no obligation and expressly disclaims any duty to update such statements.
Investor Relations Contact:
Destination XL Group, Inc.