Destination XL Group, Inc. reported a net loss of $1.9 million, or $(0.04) per diluted share, for the first quarter of fiscal 2025, compared to net income of $3.8 million, or $0.06 per diluted share, in Q1 fiscal 2024. Total sales for the quarter were $105.5 million, down 8.6% from $115.5 million in the prior-year quarter.
Comparable sales for the first quarter decreased by 9.4%, with the direct business down 16.2% and stores down 6.6%. The gross margin rate decreased by 310 basis points to 45.1%, primarily due to deleveraging of occupancy costs.
Adjusted EBITDA for Q1 fiscal 2025 was $0.1 million, a significant decrease from $8.2 million in Q1 fiscal 2024. Despite the operating loss, the company maintained a strong financial position with $29.1 million in cash and investments and $77.1 million in credit facility availability as of May 3, 2025.
Management expects comparable sales trends to gradually improve throughout fiscal 2025, projecting a single-digit negative in the second quarter and a return to positive comparable sales in the second half. This outlook is based on anticipated traction from strategic initiatives and easier year-over-year comparisons.
The company's FiTMAP Sizing Technology is now available in 52 DXL retail locations, with plans to expand to 85 stores by the end of fiscal 2025 and 200 stores by the end of fiscal 2027. The e-commerce website replatform to commercetools was completed at the end of March 2025, aiming to enhance the online customer experience.
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