dxlg-10q_20210501.htm
false Q1 0000813298 --01-29 NONE P2Y P5Y 0.974 0.0031 P3Y 1.049 0.0060 P4Y P4Y4M24D P5Y2M12D 0.69 1.85 5.50 7.02 0000813298 2021-01-31 2021-05-01 xbrli:shares 0000813298 2021-05-14 iso4217:USD 0000813298 2021-05-01 0000813298 2021-01-30 iso4217:USD xbrli:shares 0000813298 2020-02-02 2020-05-02 0000813298 us-gaap:CommonStockMember 2021-01-30 0000813298 us-gaap:AdditionalPaidInCapitalMember 2021-01-30 0000813298 us-gaap:TreasuryStockMember 2021-01-30 0000813298 us-gaap:RetainedEarningsMember 2021-01-30 0000813298 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-30 0000813298 us-gaap:CommonStockMember 2021-01-31 2021-05-01 0000813298 us-gaap:AdditionalPaidInCapitalMember 2021-01-31 2021-05-01 0000813298 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-31 2021-05-01 0000813298 us-gaap:RetainedEarningsMember 2021-01-31 2021-05-01 0000813298 us-gaap:CommonStockMember 2021-05-01 0000813298 us-gaap:AdditionalPaidInCapitalMember 2021-05-01 0000813298 us-gaap:TreasuryStockMember 2021-05-01 0000813298 us-gaap:RetainedEarningsMember 2021-05-01 0000813298 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-05-01 0000813298 us-gaap:CommonStockMember 2020-02-01 0000813298 us-gaap:AdditionalPaidInCapitalMember 2020-02-01 0000813298 us-gaap:TreasuryStockMember 2020-02-01 0000813298 us-gaap:RetainedEarningsMember 2020-02-01 0000813298 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-02-01 0000813298 2020-02-01 0000813298 us-gaap:CommonStockMember 2020-02-02 2020-05-02 0000813298 us-gaap:AdditionalPaidInCapitalMember 2020-02-02 2020-05-02 0000813298 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-02-02 2020-05-02 0000813298 us-gaap:RetainedEarningsMember 2020-02-02 2020-05-02 0000813298 us-gaap:CommonStockMember 2020-05-02 0000813298 us-gaap:AdditionalPaidInCapitalMember 2020-05-02 0000813298 us-gaap:TreasuryStockMember 2020-05-02 0000813298 us-gaap:RetainedEarningsMember 2020-05-02 0000813298 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-05-02 0000813298 2020-05-02 0000813298 dxlg:FILOLoanMember 2021-01-31 2021-05-01 0000813298 us-gaap:RevolvingCreditFacilityMember us-gaap:NaturalDisastersAndOtherCasualtyEventsMember 2020-03-01 2020-03-31 dxlg:Segment 0000813298 dxlg:DomainNameMember 2021-05-01 0000813298 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-01-30 0000813298 us-gaap:AccumulatedTranslationAdjustmentMember 2021-01-30 0000813298 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-02-01 0000813298 us-gaap:AccumulatedTranslationAdjustmentMember 2020-02-01 0000813298 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-01-31 2021-05-01 0000813298 us-gaap:AccumulatedTranslationAdjustmentMember 2021-01-31 2021-05-01 0000813298 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-02-02 2020-05-02 0000813298 us-gaap:AccumulatedTranslationAdjustmentMember 2020-02-02 2020-05-02 0000813298 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-05-01 0000813298 us-gaap:AccumulatedTranslationAdjustmentMember 2021-05-01 0000813298 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-05-02 0000813298 us-gaap:AccumulatedTranslationAdjustmentMember 2020-05-02 0000813298 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-02-02 2020-05-02 0000813298 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-01-31 2021-05-01 xbrli:pure 0000813298 srt:MinimumMember 2021-01-31 2021-05-01 0000813298 srt:MaximumMember 2021-01-31 2021-05-01 0000813298 us-gaap:PropertyPlantAndEquipmentMember 2020-02-02 2020-05-02 0000813298 dxlg:StoreMember 2021-01-31 2021-05-01 0000813298 dxlg:StoreMember srt:MaximumMember 2021-05-01 0000813298 dxlg:CorporateHeadquarterMember 2021-05-01 dxlg:RenewalOption 0000813298 2021-05-02 2021-05-01 0000813298 dxlg:RetailSegmentMember us-gaap:SalesChannelThroughIntermediaryMember 2021-01-31 2021-05-01 0000813298 dxlg:RetailSegmentMember us-gaap:SalesChannelThroughIntermediaryMember 2020-02-02 2020-05-02 0000813298 dxlg:RetailSegmentMember us-gaap:SalesChannelDirectlyToConsumerMember 2021-01-31 2021-05-01 0000813298 dxlg:RetailSegmentMember us-gaap:SalesChannelDirectlyToConsumerMember 2020-02-02 2020-05-02 0000813298 dxlg:RetailSegmentMember 2021-01-31 2021-05-01 0000813298 dxlg:RetailSegmentMember 2020-02-02 2020-05-02 0000813298 dxlg:WholesaleSegmentMember 2021-01-31 2021-05-01 0000813298 dxlg:WholesaleSegmentMember 2020-02-02 2020-05-02 0000813298 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember dxlg:RetailSegmentMember us-gaap:SalesChannelThroughIntermediaryMember 2021-01-31 2021-05-01 0000813298 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember dxlg:RetailSegmentMember us-gaap:SalesChannelThroughIntermediaryMember 2020-02-02 2020-05-02 0000813298 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember dxlg:RetailSegmentMember us-gaap:SalesChannelDirectlyToConsumerMember 2021-01-31 2021-05-01 0000813298 us-gaap:SalesRevenueNetMember us-gaap:ProductConcentrationRiskMember dxlg:RetailSegmentMember us-gaap:SalesChannelDirectlyToConsumerMember 2020-02-02 2020-05-02 0000813298 dxlg:RevolverFacilityMember 2018-05-24 0000813298 dxlg:FILOLoanMember 2018-05-24 0000813298 dxlg:CreditFacilityMember 2018-05-24 0000813298 dxlg:CreditFacilityMember 2018-05-22 2018-05-24 0000813298 dxlg:CommercialAndStandbyLetterOfCreditsMember dxlg:CreditFacilityMember 2018-05-24 0000813298 dxlg:SwinglineLoansMember dxlg:CreditFacilityMember 2018-05-24 0000813298 dxlg:CreditFacilityMember 2021-01-31 2021-05-01 0000813298 dxlg:CreditFacilityMember 2021-05-01 0000813298 us-gaap:StandbyLettersOfCreditMember dxlg:CreditFacilityMember 2021-05-01 0000813298 dxlg:DocumentaryLettersOfCreditMember dxlg:CreditFacilityMember 2021-05-01 0000813298 dxlg:FederalFundsRateMember srt:MinimumMember dxlg:CreditFacilityMember 2021-01-31 2021-05-01 0000813298 dxlg:FederalFundsRateMember srt:MaximumMember dxlg:CreditFacilityMember 2021-01-31 2021-05-01 0000813298 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MinimumMember dxlg:CreditFacilityMember 2021-01-31 2021-05-01 0000813298 us-gaap:LondonInterbankOfferedRateLIBORMember srt:MaximumMember dxlg:CreditFacilityMember 2021-01-31 2021-05-01 0000813298 us-gaap:PrimeRateMember dxlg:CreditFacilityMember 2021-05-01 0000813298 us-gaap:LondonInterbankOfferedRateLIBORMember dxlg:CreditFacilityMember 2021-05-01 0000813298 us-gaap:LondonInterbankOfferedRateLIBORMember dxlg:CreditFacilityMember 2021-01-31 2021-05-01 0000813298 us-gaap:RevolvingCreditFacilityMember 2021-01-31 2021-05-01 0000813298 us-gaap:RevolvingCreditFacilityMember 2020-02-02 2020-05-02 0000813298 dxlg:FILOLoanMember 2021-01-30 0000813298 dxlg:FirstInLastOutTermLoanFacilityMember 2021-05-01 0000813298 dxlg:FirstInLastOutTermLoanFacilityMember 2021-03-16 0000813298 dxlg:FirstInLastOutTermLoanFacilityMember 2021-03-16 2021-03-16 0000813298 dxlg:FirstInLastOutTermLoanFacilityMember 2021-01-31 2021-05-01 0000813298 dxlg:FirstInLastOutTermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-05-01 0000813298 dxlg:FirstInLastOutTermLoanFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2021-01-31 2021-05-01 0000813298 dxlg:FirstInLastOutTermLoanFacilityMember 2020-02-02 2020-05-02 0000813298 srt:MinimumMember dxlg:StoreMember 2021-05-01 0000813298 dxlg:StoreMember 2021-05-01 0000813298 srt:MinimumMember dxlg:EquipmentAndOtherAssetsMember 2021-05-01 0000813298 dxlg:EquipmentAndOtherAssetsMember srt:MaximumMember 2021-05-01 0000813298 2020-04-01 0000813298 dxlg:TimeBasedVestingScheduleMember 2021-01-31 2021-05-01 0000813298 dxlg:PerformanceBasedVestingScheduleMember 2021-01-31 2021-05-01 0000813298 us-gaap:RestrictedStockUnitsRSUMember dxlg:TwoThousandNineteenToTwoThousandTwentyOneLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 us-gaap:CashMember dxlg:TwoThousandNineteenToTwoThousandTwentyOneLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 us-gaap:EmployeeStockOptionMember dxlg:TwoThousandTwentyToTwoThousandTwentyTwoLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 us-gaap:CashMember dxlg:TwoThousandTwentyToTwoThousandTwentyTwoLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 us-gaap:EmployeeStockOptionMember dxlg:TwoThousandTwentyOneToTwoThousandTwentyThreeLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 us-gaap:CashMember dxlg:TwoThousandTwentyOneToTwoThousandTwentyThreeLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 dxlg:TimeBasedVestingScheduleMember dxlg:TwoThousandNineteenToTwoThousandTwentyOneLongTermIncentivePlanMember 2021-05-01 0000813298 dxlg:TimeBasedVestingScheduleMember dxlg:TwoThousandTwentyToTwoThousandTwentyTwoLongTermIncentivePlanMember 2021-05-01 0000813298 dxlg:TimeBasedVestingScheduleMember dxlg:TwoThousandTwentyOneToTwoThousandTwentyThreeLongTermIncentivePlanMember 2021-05-01 0000813298 dxlg:TimeBasedVestingScheduleMember dxlg:TwoThousandNineteenToTwoThousandTwentyOneLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 dxlg:TimeBasedVestingScheduleMember dxlg:TwoThousandTwentyToTwoThousandTwentyTwoLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 dxlg:TimeBasedVestingScheduleMember dxlg:TwoThousandTwentyOneToTwoThousandTwentyThreeLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 dxlg:PerformanceBasedVestingScheduleMember dxlg:TwoThousandNineteenToTwoThousandTwentyOneLongTermIncentivePlanMember 2021-05-01 0000813298 dxlg:PerformanceBasedVestingScheduleMember dxlg:TwoThousandTwentyToTwoThousandTwentyTwoLongTermIncentivePlanMember 2021-05-01 0000813298 dxlg:PerformanceBasedVestingScheduleMember dxlg:TwoThousandTwentyOneToTwoThousandTwentyThreeLongTermIncentivePlanMember 2021-05-01 0000813298 dxlg:TwoThousandSixteenPlanMember 2016-08-04 0000813298 dxlg:TwoThousandSixteenPlanMember 2016-08-04 2016-08-04 0000813298 dxlg:TwoThousandSixteenPlanMember 2021-05-01 0000813298 dxlg:TwoThousandSixteenPlanMember 2019-08-08 2019-08-08 0000813298 dxlg:TwoThousandSixteenPlanMember 2020-08-12 2020-08-12 0000813298 dxlg:TwoThousandSixteenPlanMember 2021-01-31 2021-05-01 0000813298 dxlg:TwoThousandAndSixPlanMember 2021-05-01 0000813298 dxlg:TwoThousandSixteenPlanMember us-gaap:RestrictedStockUnitsRSUMember 2021-01-30 0000813298 dxlg:TwoThousandSixteenPlanMember dxlg:DeferredStockMember 2021-01-30 0000813298 dxlg:TwoThousandSixteenPlanMember us-gaap:PerformanceSharesMember 2021-01-30 0000813298 dxlg:TwoThousandSixteenPlanMember 2021-01-30 0000813298 dxlg:TwoThousandSixteenPlanMember us-gaap:RestrictedStockUnitsRSUMember 2021-01-31 2021-05-01 0000813298 dxlg:TwoThousandSixteenPlanMember us-gaap:RestrictedStockUnitsRSUMember 2021-05-01 0000813298 dxlg:TwoThousandSixteenPlanMember dxlg:DeferredStockMember 2021-05-01 0000813298 dxlg:TwoThousandSixteenPlanMember us-gaap:PerformanceSharesMember 2021-05-01 0000813298 us-gaap:PerformanceSharesMember 2021-05-01 0000813298 us-gaap:PerformanceSharesMember srt:ChiefExecutiveOfficerMember 2021-01-31 2021-05-01 0000813298 us-gaap:PerformanceSharesMember 2021-01-31 2021-05-01 0000813298 us-gaap:PerformanceSharesMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2021-05-01 0000813298 us-gaap:PerformanceSharesMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2021-01-31 2021-05-01 0000813298 us-gaap:PerformanceSharesMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2021-05-01 0000813298 us-gaap:PerformanceSharesMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2021-01-31 2021-05-01 0000813298 us-gaap:PerformanceSharesMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2021-05-01 0000813298 us-gaap:PerformanceSharesMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2021-01-31 2021-05-01 0000813298 dxlg:TwoThousandAndSixPlanMember 2021-01-30 0000813298 dxlg:TwoThousandAndSixPlanMember 2021-01-31 2021-05-01 0000813298 dxlg:TwoThousandAndSixPlanMember 2020-02-02 2021-01-30 0000813298 dxlg:TwoThousandTwentyOneToTwoThousandTwentyThreeLongTermIncentivePlanMember 2021-01-31 2021-05-01 0000813298 us-gaap:RestrictedStockUnitsRSUMember 2021-01-31 2021-05-01 0000813298 dxlg:DeferredStockMember 2020-02-02 2020-05-02 0000813298 dxlg:NonEmployeeDirectorsMember 2021-01-31 2021-05-01 0000813298 dxlg:TimeVestedStockOptionsRestrictedStockUnitAndPerformanceStockUnitAwardsMember 2021-05-01 0000813298 dxlg:TimeVestedStockOptionsRestrictedStockUnitAndPerformanceStockUnitAwardsMember 2021-01-31 2021-05-01 0000813298 us-gaap:EmployeeStockOptionMember 2021-01-31 2021-05-01 0000813298 us-gaap:EmployeeStockOptionMember 2020-02-02 2020-05-02 0000813298 us-gaap:RestrictedStockUnitsRSUMember 2021-01-31 2021-05-01 0000813298 us-gaap:RestrictedStockUnitsRSUMember 2020-02-02 2020-05-02 0000813298 dxlg:DeferredStockMember 2021-01-31 2021-05-01 0000813298 dxlg:DeferredStockMember 2020-02-02 2020-05-02 0000813298 srt:MinimumMember us-gaap:EmployeeStockOptionMember 2021-01-31 2021-05-01 0000813298 srt:MaximumMember us-gaap:EmployeeStockOptionMember 2021-01-31 2021-05-01 0000813298 dxlg:DeferredStockMember 2021-01-31 2021-05-01 0000813298 us-gaap:PhantomShareUnitsPSUsMember 2020-02-02 2020-05-02 0000813298 us-gaap:PhantomShareUnitsPSUsMember 2021-01-31 2021-05-01 0000813298 2021-02-05 2021-02-05 0000813298 us-gaap:InternalRevenueServiceIRSMember 2021-01-30 0000813298 2020-02-02 2021-01-30 0000813298 us-gaap:StateAndLocalJurisdictionMember 2021-01-30 0000813298 us-gaap:StateAndLocalJurisdictionMember srt:MinimumMember 2020-02-02 2021-01-30 0000813298 us-gaap:StateAndLocalJurisdictionMember srt:MaximumMember 2020-02-02 2021-01-30

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 1, 2021 

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 01-34219

 

DESTINATION XL GROUP, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

04-2623104

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

555 Turnpike Street

Canton, MA

02021

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (781) 828-9300

 

Securities registered pursuant to Section 12(b) of the Act.

Title of each class

Trading symbol(s)

Name of each exchange on which registered

 

DXLG

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of May 14, 2021, the registrant had 63,526,601 shares of common stock, $0.01 par value per share, outstanding.

 

 

 

 


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

DESTINATION XL GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

 

 

 

May 1, 2021

 

 

January 30, 2021

 

 

 

(Fiscal 2021)

 

 

(Fiscal 2020)

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

5,843

 

 

$

18,997

 

Accounts receivable

 

 

4,671

 

 

 

6,416

 

Inventories

 

 

88,390

 

 

 

85,028

 

Prepaid expenses and other current assets

 

 

6,381

 

 

 

3,689

 

Total current assets

 

 

105,285

 

 

 

114,130

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation and amortization

 

 

52,591

 

 

 

56,552

 

Operating lease right-of-use assets

 

 

130,061

 

 

 

134,321

 

Intangible assets

 

 

1,150

 

 

 

1,150

 

Other assets

 

 

598

 

 

 

602

 

Total assets

 

$

289,685

 

 

$

306,755

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

74

 

 

$

-

 

Accounts payable

 

 

31,639

 

 

 

27,091

 

Accrued expenses and other current liabilities

 

 

25,450

 

 

 

24,825

 

Operating leases, current

 

 

38,331

 

 

 

43,598

 

Borrowings under credit facility

 

 

33,371

 

 

 

59,521

 

Total current liabilities

 

 

128,865

 

 

 

155,035

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Long-term debt, net of current portion

 

 

16,669

 

 

 

14,869

 

Operating leases, non-current

 

 

129,856

 

 

 

135,819

 

Other long-term liabilities

 

 

4,811

 

 

 

5,109

 

Total long-term liabilities

 

 

151,336

 

 

 

155,797

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity (deficit):

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value, 1,000,000 shares authorized, none issued

 

 

 

 

 

 

Common stock, $0.01 par value, 100,000,000 shares authorized, 76,212,032 and 64,656,384 shares issued at May 1, 2021 and January 30, 2021, respectively

 

 

762

 

 

 

647

 

Additional paid-in capital

 

 

319,443

 

 

 

314,747

 

Treasury stock at cost, 12,755,873 shares at May 1, 2021 and January 30, 2021

 

 

(92,658

)

 

 

(92,658

)

Accumulated deficit

 

 

(211,895

)

 

 

(220,592

)

Accumulated other comprehensive loss

 

 

(6,168

)

 

 

(6,221

)

Total stockholders' equity (deficit)

 

 

9,484

 

 

 

(4,077

)

Total liabilities and stockholders' equity (deficit)

 

$

289,685

 

 

$

306,755

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

2


DESTINATION XL GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

 

May 1, 2021

 

 

May 2, 2020

 

 

 

 

(Fiscal 2021)

 

 

(Fiscal 2020)

 

 

 

 

 

Sales

 

$

111,494

 

 

$

57,227

 

 

Cost of goods sold including occupancy costs

 

 

60,661

 

 

 

44,013

 

 

Gross profit

 

 

50,833

 

 

 

13,214

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

37,118

 

 

 

32,112

 

 

Impairment of assets

 

 

(652

)

 

 

16,335

 

 

Depreciation and amortization

 

 

4,500

 

 

 

5,732

 

 

Total expenses

 

 

40,966

 

 

 

54,179

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

9,867

 

 

 

(40,965

)

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(1,142

)

 

 

(741

)

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision for income taxes

 

 

8,725

 

 

 

(41,706

)

 

Provision for income taxes

 

 

28

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

8,697

 

 

$

(41,726

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share - basic and diluted

 

$

0.14

 

 

$

(0.82

)

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

62,153

 

 

 

50,758

 

 

Diluted

 

 

63,000

 

 

 

50,758

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

 

3


DESTINATION XL GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

 

May 1, 2021

 

 

May 2, 2020

 

 

 

 

(Fiscal 2021)

 

 

(Fiscal 2020)

 

 

Net income (loss)

 

$

8,697

 

 

$

(41,726

)

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income before taxes:

 

 

 

 

 

 

 

 

 

Foreign currency translation

 

 

(25

)

 

 

(34

)

 

Pension plans

 

 

78

 

 

 

242

 

 

Other comprehensive income before taxes

 

 

53

 

 

 

208

 

 

Tax provision related to items of other comprehensive income

 

 

 

 

 

 

 

Other comprehensive income, net of tax

 

 

53

 

 

 

208

 

 

Comprehensive income (loss)

 

$

8,750

 

 

$

(41,518

)

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

4


 

.

DESTINATION XL GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Treasury Stock

 

 

Accumulated

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Amounts

 

 

Capital

 

 

Shares

 

 

Amounts

 

 

Deficit

 

 

Income (Loss)

 

 

Total

 

Balance at January 30, 2021

 

 

64,656

 

 

$

647

 

 

$

314,747

 

 

 

(12,755

)

 

$

(92,658

)

 

$

(220,592

)

 

$

(6,221

)

 

$

(4,077

)

Issuance of common stock through private direct offering, net of offering costs

 

 

11,111

 

 

 

111

 

 

 

4,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,375

 

Board of directors compensation

 

 

137

 

 

 

1

 

 

 

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

109

 

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

327

 

Issuance of common stock, upon RSUs release

 

 

308

 

 

 

3

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension plan, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78

 

 

 

78

 

Foreign currency, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25

)

 

 

(25

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,697

 

 

 

 

 

 

 

8,697

 

Balance at May 1, 2021

 

 

76,212

 

 

$

762

 

 

$

319,443

 

 

 

(12,755

)

 

$

(92,658

)

 

$

(211,895

)

 

$

(6,168

)

 

$

9,484

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 


5


DESTINATION XL GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Treasury Stock

 

 

Accumulated

 

 

Comprehensive

 

 

 

 

 

 

 

Shares

 

 

Amounts

 

 

Capital

 

 

Shares

 

 

Amounts

 

 

Deficit

 

 

Income (Loss)

 

 

Total

 

Balance at February 1, 2020

 

 

63,297

 

 

$

633

 

 

$

312,933

 

 

 

(12,755

)

 

$

(92,658

)

 

$

(156,054

)

 

$

(6,431

)

 

$

58,423

 

Board of directors compensation

 

 

93

 

 

 

1

 

 

 

148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

149

 

Stock compensation expense

 

 

 

 

 

 

 

 

 

 

452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

452

 

Issuance of common stock, upon RSUs release

 

 

437

 

 

 

4

 

 

 

(4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred stock vested

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension plan, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

242

 

 

 

242

 

Foreign currency, net of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(34

)

 

 

(34

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(41,726

)

 

 

 

 

 

 

(41,726

)

Balance at May 2, 2020

 

 

63,833

 

 

$

638

 

 

$

313,529

 

 

 

(12,755

)

 

$

(92,658

)

 

$

(197,780

)

 

$

(6,223

)

 

$

17,506

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

6


DESTINATION XL GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

For the three months ended

 

 

 

May 1, 2021

 

 

May 2, 2020

 

 

 

(Fiscal 2021)

 

 

(Fiscal 2020)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

8,697

 

 

$

(41,726

)

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:

 

 

 

 

 

 

 

 

Amortization of deferred debt issuance costs

 

 

215

 

 

 

35

 

Impairment of assets

 

 

(652

)

 

 

16,335

 

Depreciation and amortization

 

 

4,500

 

 

 

5,732

 

Stock compensation expense

 

 

327

 

 

 

452

 

Board of directors stock compensation

 

 

109

 

 

 

149

 

 

 

 

 

 

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,745

 

 

 

4,281

 

Inventories

 

 

(3,362

)

 

 

(5,905

)

Prepaid expenses and other current assets

 

 

(2,692

)

 

 

5,920

 

Other assets

 

 

4

 

 

 

606

 

Accounts payable

 

 

4,548

 

 

 

98

 

Operating leases, net

 

 

(6,318

)

 

 

(1,327

)

Accrued expenses and other liabilities

 

 

644

 

 

 

(1,461

)

Net cash provided by (used for) operating activities

 

 

7,765

 

 

 

(16,811

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Additions to property and equipment, net

 

 

(803

)

 

 

(1,590

)

Net cash used for investing activities

 

 

(803

)

 

 

(1,590

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock from private direct offering, net of offering costs

 

 

4,375

 

 

 

 

Repayment of existing FILO loan

 

 

(15,000

)

 

 

 

Proceeds from new FILO loan

 

 

17,500

 

 

 

 

Net borrowings (repayments) under credit facility

 

 

(26,173

)

 

 

40,214

 

Debt issuance costs

 

 

(818

)

 

 

(4

)

Net cash provided by (used for) financing activities

 

 

(20,116

)

 

 

40,210

 

Net increase (decrease) in cash and cash equivalents

 

 

(13,154

)

 

 

21,809

 

Cash and cash equivalents:

 

 

 

 

 

 

 

 

Beginning of period

 

 

18,997

 

 

 

4,338

 

End of period

 

$

5,843

 

 

$

26,147

 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

 

 

7


DESTINATION XL GROUP, INC.

Notes to Consolidated Financial Statements

(Unaudited)

 

 

 

1. Basis of Presentation

In the opinion of management of Destination XL Group, Inc., a Delaware corporation (collectively with its subsidiaries, referred to as the “Company”), the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary for a fair presentation of the interim financial statements. These financial statements do not include all disclosures associated with annual financial statements and, accordingly, should be read in conjunction with the notes to the Company’s audited Consolidated Financial Statements for the fiscal year ended January 30, 2021 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 19, 2021.

The information set forth in these statements may be subject to normal year-end adjustments. The information reflects all adjustments that, in the opinion of management, are necessary to present fairly the Company’s results of operations, financial position and cash flows for the periods indicated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s business historically has been seasonal in nature, and the results of the interim periods presented are not necessarily indicative of the results to be expected for the full year.

The Company’s fiscal year is a 52- or 53- week period ending on the Saturday closest to January 31. Fiscal 2021 and fiscal 2020 are 52-week periods ending on January 29, 2022 and January 30, 2021, respectively.

COVID-19 Pandemic and its impact on results and comparability of financial statements

On March 11, 2020, the World Health Organization declared the current outbreak of a novel coronavirus disease (“COVID-19”) as a global pandemic. The COVID-19 pandemic had an adverse effect on the Company’s operations during fiscal 2020.  All of the Company’s store locations were closed temporarily on March 17, 2020 and the majority of the Company’s workforce was furloughed in March 2020.  The Company began reopening stores in late April and by the end of June 2020 all retail stores had been reopened but the majority with reduced operating hours.  In March 2020, as a proactive measure, the Company drew $30.0 million under its revolving facility in order to increase the Company’s cash position and preserve financial flexibility.  During the second quarter of fiscal 2020, the Company entered into rent concessions with the majority of its landlords, in the form of rent abatements, rent deferments and, to a lesser extent, lease term extensions. As a result of the impact of the pandemic on our business in fiscal 2020, including the closure of all of our stores in the first quarter of fiscal 2020, results for the first quarter fiscal of 2021 may not be comparable to the results for the first quarter of fiscal 2020.

While vaccines are being widely distributed and many areas where our stores are located are beginning to re-open with limited or no restrictions, the duration of the COVID-19 pandemic and its variants remain uncertain and could continue to have a material adverse impact on the Company’s results of operations, financial condition and cash flows.

Segment Information

The Company has three principal operating segments: its stores, direct and wholesale businesses.  The Company considers its stores and direct operating segments to be similar in terms of economic characteristics, production processes and operations, and has therefore aggregated them into one reportable segment, retail segment, consistent with its omni-channel business approach.  Due to the immateriality of the wholesale segment’s revenues, profits and assets, its operating results are aggregated with the retail segment for both periods.

Intangibles

In fiscal 2018, the Company purchased the rights to the domain name “dxl.com.”  The domain name has a carrying value of $1.2 million and is considered an indefinite-lived asset.  During the first three months ended May 1, 2021, no event or circumstance occurred which would cause a reduction in the fair value of this intangible asset.

Fair Value of Financial Instruments

ASC Topic 825, Financial Instruments, requires disclosure of the fair value of certain financial instruments. ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements.

8


The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities.

The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible.

The fair value of long-term debt is classified within Level 2 of the valuation hierarchy. At May 1, 2021, the fair value approximated the carrying amount based upon terms available to the Company for borrowings with similar arrangements and remaining maturities.

The fair value of the “dxl.com” domain name, an indefinite-lived asset, is measured on a non-recurring basis in connection with the Company’s annual impairment test and is classified within Level 3 of the valuation hierarchy. See Intangibles above.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and short-term borrowings approximate fair value because of the short maturity of these instruments.

 

Accumulated Other Comprehensive Income (Loss) - (“AOCI”)

Other comprehensive income (loss) includes amounts related to foreign currency and pension plans and is reported in the Consolidated Statements of Comprehensive Income (Loss). Other comprehensive income (loss) and reclassifications from AOCI for the three months ended May 1, 2021 and May 2, 2020, respectively, were as follows:

 

 

May 1, 2021

 

 

May 2, 2020

 

For the three months ended:

 

(in thousands)

 

 

 

Pension

Plans

 

 

Foreign

Currency

 

 

Total