Destination XL Group, Inc. Reports Holiday Sales Results
- Total sales were
$111.7 millioncompared to $106.6 millionfor the 9-week holiday sales period ended January 1, 2022.
- Comparable sales for the same 9-week holiday period increased 7.5%, with a comparable sales increase of 8.9% from stores and 4.9% from the direct business.
Based on the holiday sales and expectations for the remainder of the fourth quarter, the Company is updating its guidance toward the upper half of its sales range for fiscal 2022 as follows:
- Total sales for fiscal 2022 are expected to be
$540.0 millionto $545.0 million, or the upper half of its previous guidance of $535.0 millionto $545.0 million.
- Adjusted EBITDA margin of 12.5% to 13.5%, unchanged from previous guidance. Adjusted EBITDA margin is a non-GAAP financial measure1.
“We are pleased with our sales results during this nine-week holiday period which we believe demonstrates the power of the brand’s transformational repositioning resonating with Big + Tall men. Both our stores and our direct business performed well this holiday season and we were able to drive our sales at regular price, only deploying promotions to address customer file and inventory opportunities. Today we are updating our sales guidance toward the upper half of the range for fiscal 2022,” said
“I am also pleased to announce that DXL will be launching two new national merchandise brands that will be exclusive to DXL in Big + Tall sizes. Life is Good and Original Penguin Golf will be available both on our website and in selected stores starting in the Spring 2023 season. At DXL, Big + Tall is all we do and we trade on the belief that we offer superior fit, assortment, and experience to him. We believe this leads to a relationship with our customers that is built on respect, trust, and belonging. We exist to provide the Big + Tall man with the freedom to choose his own style, to wear what he wants to wear. Both of these brands will further enhance our exclusive assortment,” Kanter concluded.
The Company plans to report its actual fourth-quarter and fiscal 2022 financial results on
1 The Company has not provided guidance for net income, the most directly comparable GAAP measure to adjusted EBITDA margin. To do so would require unreasonable efforts at this time to estimate and quantify, with a reasonable degree of certainty, various necessary GAAP components, specifically those related to tax items, that are reconciling items between net income and EBITDA. However, such tax items could have a material impact on the amount of the directly comparable net income GAAP measure and may differ significantly from non-GAAP adjusted EBITDA margin. See also “Non-GAAP Measures” below.
In addition to financial measures prepared in accordance with
Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization and adjusted for asset impairment charges. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by total sales. The Company believes that providing adjusted EBITDA margin is useful to investors to evaluate the Company’s performance and are key metrics to measure profitability and economic productivity.
Certain statements and information contained in this press release constitute forward-looking statements under the federal securities laws, including statements regarding our guidance for fiscal 2022, including expected sales and adjusted EBITDA margin, and the expected timing of the release of its financial results for the fourth quarter and fiscal year 2022. The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the Company's strategic direction and the effect of such plans on the Company's financial results. The Company's actual results and the implementation of its plans and operations 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 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.
Source: Destination XL Group, Inc.