Destination XL Group, Inc. reported a net loss of $1.8 million, or $(0.03) per diluted share, for the third quarter of fiscal 2024, compared to net income of $4.0 million, or $0.06 per diluted share, in the prior-year quarter. Total sales for the quarter were $107.5 million, a decrease from $119.2 million in the third quarter of fiscal 2023.
Comparable sales for the third quarter declined by 11.3%, with store sales down 9.9% and the direct business down 14.7%. The gross margin rate decreased by 240 basis points to 45.1%, primarily due to deleveraging of occupancy costs on lower sales.
The company revised its full-year fiscal 2024 guidance, expecting sales to be approximately $470.0 million and adjusted EBITDA guidance lowered to 4.5% from 6.0%. This revision reflects continuing headwinds in men's apparel and consumer spending.
In response to market conditions, DXL paused its brand advertising campaign and reduced its fiscal 2025 new store opening target to 8 from a previous expectation of 10. The company also reported $43.0 million in cash and investments as of November 2, 2024, with no outstanding debt, and repurchased 3.6 million shares for $10.2 million under a $15.0 million program approved in September 2024.
DXL completed the second phase of its e-commerce platform transition, with the final phase scheduled for early 2025, aiming to enhance the online customer experience. The company also launched its merchandise assortment on Nordstrom's digital marketplace in the second quarter of fiscal 2024, featuring 37 brands and over 1,400 styles.
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