Destination XL Group, Inc. Reports Fiscal 2023 Fourth Quarter and Full-Year Financial Results
- Strong financial results for fiscal year 2023 with total sales of $521.8 million and adjusted EBITDA of $55.9 million.
- Net income of $27.9 million, or $0.43 per diluted share, for fiscal year 2023.
- Challenging retail market in 2023 led to a 4.6% decrease in comparable sales.
- Company's long-range plan focuses on marketing, store expansion, digital platform upgrades, and collaborations to drive growth.
- Cash flow from operations for fiscal 2023 was $49.6 million, with free cash flow of $32.2 million.
- Total cash and investments were $60.0 million as of February 3, 2024, with no outstanding debt.
- Management optimistic about future growth opportunities and strategic initiatives to capture a larger market share.
- Decrease in total sales for the fourth quarter of fiscal 2023 compared to the same period in fiscal 2022.
- Net income and EPS declined for both the fourth quarter and fiscal year 2023 compared to the respective periods in fiscal 2022.
- Adjusted EBITDA decreased for both the fourth quarter and fiscal year 2023 compared to the respective periods in fiscal 2022.
- Gross margin and SG&A expenses showed unfavorable trends in fiscal 2023.
- Loss from termination of retirement plans impacted net income for fiscal year 2023.
Insights
The report from Destination XL Group, Inc. reveals a mixed financial performance with a decline in sales and net income but a strong balance sheet with no debt. The decrease in total sales and comparable sales for both the fourth quarter and full year indicates a challenging retail environment, particularly in the apparel sector. The 10.1% decrease in comparable sales for Q4 and a full-year comp sales decrease of 4.6% reflect a slowdown in consumer spending, likely influenced by economic and inflationary pressures.
It's noteworthy that despite these headwinds, DXLG managed to maintain a solid adjusted EBITDA margin of 10.7%, which suggests operational efficiency. However, investors should be cautious about the projection of gross margin rates expected to be lower in 2024 due to occupancy deleverage. The increase in SG&A expenses as a percentage of sales also deserves attention, as it could impact profitability if not offset by revenue growth.
DXLG's strategic growth initiatives, including marketing, store expansion and digital experience enhancements, are ambitious and could drive future growth. However, these require significant investments, which could affect short-term profitability. The company's strong cash position and lack of debt provide some flexibility to fund these initiatives, but the execution and return on these investments will be important for long-term success.
Destination XL Group's performance in the Big + Tall men’s clothing sector is indicative of broader trends in the retail apparel industry. The company's focus on customer experience and strategic growth initiatives, such as marketing campaigns and store development, is a response to the need for differentiation in a competitive market.
Their plan to open new stores and upgrade their website platform suggests a commitment to both physical and digital retail, which is essential for modern retailers. However, the reported slowdown in store traffic and the shift in consumer spending habits underscore the challenges faced by brick-and-mortar retailers. The company's pivot towards strategic collaborations and alliances, such as with UNTUCKit, Faherty and Hugo Boss, is a smart move to enhance brand offerings and attract customers.
Furthermore, the decision to terminate the frozen pension plans, taking advantage of the high-interest rate environment, shows proactive financial management. This move, however, resulted in a one-time charge that affected net income, highlighting the importance of considering one-off financial items when evaluating a company's performance.
DXLG's financial results can be seen as a reflection of the broader economic climate. The decline in comparable sales and the overall decrease in net income year-over-year suggest that the apparel sector and particularly niche markets such as Big + Tall men’s clothing, are sensitive to economic downturns and consumer confidence levels.
The company's mention of 'consumer headwinds' and 'inflationary pressures' points to the impact of macroeconomic factors on discretionary spending. While DXLG has managed to maintain a strong balance sheet, the economic outlook will play a significant role in determining their ability to achieve the ambitious growth targets set for the coming years.
The strategic initiatives planned for fiscal 2024, such as store expansions and digital enhancements, will be tested against the backdrop of economic conditions. Their success will depend not only on the company's execution but also on the state of the economy and consumer spending patterns. It will be important to monitor economic indicators and consumer confidence levels as they will have a direct impact on DXLG's performance.
Full-Year Sales of
CANTON, Mass., March 21, 2024 (GLOBE NEWSWIRE) -- Destination XL Group, Inc. (NASDAQ: DXLG), the largest integrated commerce specialty retailer of Big + Tall men’s clothing and shoes, today reported financial results for the fourth quarter and fiscal year 2023.
Fourth Quarter Highlights
- Total sales for the 14-week fourth quarter were
$137.1 million , down4.7% from$143.9 million for the 13-week fourth quarter of fiscal 2022. Comparable sales for the fourth quarter decreased10.1% as compared to the fourth quarter of fiscal 2022. - Net income for the fourth quarter was
$5.2 million , or$0.08 per diluted share, as compared to net income of$8.3 million , or$0.13 per diluted share, for the fourth quarter of fiscal 2022. Results for the fourth quarter of fiscal 2023 included a pre-tax charge of$1.5 million , in connection with the termination of the frozen retirement plans. - Adjusted net income (a non-GAAP measure) for the fourth quarter was
$0.10 per diluted share as compared to$0.12 per diluted share for the fourth quarter of fiscal 2022. - Adjusted EBITDA (a non-GAAP measure) was
$11.7 million for the fourth quarter as compared to$14.2 million for the fourth quarter of fiscal 2022.
Fiscal 2023 Highlights
- Total sales for the 53-weeks of fiscal 2023 were
$521.8 million as compared to$545.8 million for the 52 weeks of fiscal 2022. Comparable sales decreased4.6% as compared to fiscal 2022. - Net income was
$27.9 million , or$0.43 per diluted share, as compared to$89.1 million , or$1.33 per diluted share, in fiscal 2022. Results for fiscal 2023 included a pre-tax charge of$5.7 million , in connection with the termination of the frozen retirement plans. Results for fiscal 2022 included an income tax benefit of$31.6 million related to the release of the valuation allowance against deferred taxes. - Adjusted net income (a non-GAAP measure) was
$0.50 per diluted share for fiscal 2023 as compared to$0.63 per diluted share for fiscal 2022. - Adjusted EBITDA (a non-GAAP measure) was
$55.9 million as compared to$73.8 million for fiscal 2022. - Cash flow from operations for fiscal 2023 was
$49.6 million , as compared to$59.9 million for fiscal 2022. Free cash flow (a non-GAAP measure) was$32.2 million as compared to$50.3 million for fiscal 2022. - As of February 3, 2024, total cash and investments were
$60.0 million as compared to$52.1 million at January 28, 2023, with no outstanding debt for either period.
Management Comments
"We are pleased to have delivered sales and adjusted EBITDA results for fiscal 2023 that were the second and third highest, respectively, in the history of our Company, reflecting an adjusted EBITDA margin that has more than doubled and a net sales increase of
"Even with consumer headwinds, our team maintained an operational discipline that allowed us to deliver an adjusted EBITDA margin of
“Fiscal 2024 will be defined by the launch of strategic growth initiatives in marketing, store expansion, the DXL digital experience, and collaborations. These initiatives are ambitious, and necessary, and will require us to make significant investments in our future. They will begin to come online in late Spring and will be a catalyst for sales growth for the balance of the year. We believe that we can invest in these growth initiatives while maintaining an acceptable level of profitability and free cash flow. And, over the next five years, we expect to grow our top line significantly and, with scale, return to double-digit adjusted EBITDA margins, finally unlocking the potential that exists in the men’s big and tall market,” Kanter concluded.
Our Future Growth Strategy
Our long-range plan is grounded in multiple initiatives designed to meaningfully accelerate the growth trajectory of DXL. There is a substantial opportunity to drive brand awareness, take a greater share of the addressable market, and grow our top line by focusing on the following four growth objectives:
Marketing & Brand Building: We have selected new creative and media agencies to develop, build, and execute a campaign that will drive an emotional connection to the DXL brand and drive brand awareness. We are planning a multi-channel campaign and are targeting an early summer multi-market test-launch. We are prepared to invest cautiously in this initiative, with total marketing costs increasing to approximately
Store Development: While we have stores in every major metro market across the United States, there are geographic voids in certain markets where big + tall consumers are not being served by a DXL store. Our consumer research indicates that
New Website Platform: We are upgrading our website from our legacy infrastructure to a new, modern commerce platform, with various features and functionality launching in the second half of fiscal 2024. We believe this upgrade will provide immediate performance improvements and customer experience benefits by eliminating friction points, optimizing search capability, and enhancing speed and response times. The new platform is engineered by a leading eCommerce technology provider and will position us to respond faster and more effectively to make changes in the future.
Alliances & Collaborations: This past year we launched a new collaboration with UNTUCKit and added two more iconic brands to our assortment with Faherty and Hugo Boss, with door expansions planned for all three in fiscal 2024. We believe our heritage of providing a world-class consumer shopping experience makes DXL an ideal partner for collaborations and alliances. We are in the final stages of an agreement with another retailer that will allow us to sell our product through a new retail distribution channel that is aligned with DXL’s leading retail consumer experience.
Fourth-Quarter and Fiscal 2023 Results
Fiscal 2023 included 53 weeks compared with 52 weeks in fiscal 2022. Accordingly, year-over-year comparisons of total sales for the fourth quarter and full year are affected by an extra week of sales in fiscal 2023. However, for comparable sales, the Company is reporting on a comparable week's basis (i.e. the 14 and 53 weeks ended February 3, 2024, compared with the 14 and 53 weeks ended February 4, 2023, respectively).
Sales
For the 14-week fourth quarter of fiscal 2023, total sales were
For fiscal 2023, total sales decreased
Gross Margin
For the fourth quarter of fiscal 2023, gross margin, inclusive of occupancy costs, was
For fiscal 2023, gross margin, inclusive of occupancy costs, was
Selling, General & Administrative
SG&A expenses for the fourth quarter of fiscal 2023 were
On a dollar basis, SG&A expenses decreased by
Management views SG&A expenses through two primary cost centers: Customer Facing Costs and Corporate Support Costs. Customer Facing Costs, which include store payroll, marketing and other store operating costs, represented
Loss from Termination of Retirement Plans
During fiscal 2023, we identified an opportunity to eliminate a variable liability by taking advantage of the high-interest rate environment and terminating the frozen pension plan and SERP. Through the purchase of nonparticipating annuities, we completed a final settlement of the SERP in the third quarter and a final settlement of the pension plan in the fourth quarter.
For the fourth quarter and fiscal year 2023, we recognized a charge of
Interest Income (Expense)
Interest income for the fourth quarter of fiscal 2023 was
Income Taxes
As a result of releasing substantially all of the valuation allowance against our deferred tax assets during fiscal 2022, we have returned to a normal tax provision for fiscal 2023. Our tax provision for income taxes for interim periods was determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any. Each quarter, we updated our estimate of the annual effective tax rate and made a year-to-date adjustment to the provision.
Accordingly, for the fourth quarter and fiscal year 2023, the Company’s effective tax rate was
During fiscal 2022, we released substantially all of the valuation allowance against our deferred tax assets which resulted in a non-recurring tax benefit of
At February 3, 2024, we had
Net Income
Net income for the fourth quarter of fiscal 2023 was
Net income for fiscal 2023 was
Net income for the fourth quarter and fiscal year 2023 included net income for the 53rd week, which was approximately
Net income for fiscal 2022 included the reversal of
On a non-GAAP basis, assuming a normalized tax rate of
Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization, adjusted for loss from the termination of retirement plans and impairment (gain) of assets, if any ("adjusted EBITDA"), a non-GAAP measure, for the fourth quarter of fiscal 2023 were
Cash Flow
Cash flow from operations for fiscal 2023 was
The decrease in free cash flow was primarily due to lower earnings and an increase in capital spend, partially offset by a decrease in merchandise purchases as we continued to drive more productive inventory utilization.
| (in millions) | Fiscal 2023 | Fiscal 2022 | ||||||
| Cash flow from operating activities (GAAP) | $ | 49.6 | $ | 59.9 | ||||
| Capital expenditures | (17.4 | ) | (9.6 | ) | ||||
| Free cash flow (non-GAAP) | $ | 32.2 | $ | 50.3 | ||||
Non-GAAP Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share and free cash flow are non-GAAP financial measures. Please see “Non-GAAP Measures” below for reconciliations of these non-GAAP measures to the comparable GAAP measures that follow in the tables below.
Balance Sheet & Liquidity
As of February 3, 2024, we had cash and investments of
Inventory at February 3, 2024 decreased
Stock Repurchase Program
In March 2023, our Board of Directors approved a stock repurchase program. Under the stock repurchase program, we were initially authorized to repurchase up to
During fiscal 2023, we repurchased 5.4 million shares at a total cost, including fees, of
Store Information
The following is a summary of our retail square footage for the past three years:
| Year End 2023 | Year End 2022 | Year End 2021 | |||||||||
| # of Stores | Sq Ft. (000’s) | # of Stores | Sq Ft. (000’s) | # of Stores | Sq Ft. (000’s) | ||||||
| DXL retail | 232 | 1,725 | 218 | 1,663 | 220 | 1,678 | |||||
| DXL outlets | 15 | 76 | 16 | 80 | 16 | 80 | |||||
| CMXL retail | 17 | 55 | 28 | 92 | 35 | 115 | |||||
| CMXL outlets | 19 | 57 | 19 | 57 | 19 | 57 | |||||
| Total | 283 | 1,913 | 281 | 1,892 | 290 | 1,930 | |||||
During fiscal 2023, we opened three new stores located in Queens, New York, Cincinnati, Ohio and Pasadena, California. We also completed the conversion of 11 Casual Male stores to the DXL store format and completed the remodel of one existing DXL store and closed one DXL outlet.
Over the next three to five years, we believe we could potentially open approximately 50 net new DXL stores across the country, which could average 6,000 square feet or 300,000 sq. ft. in total, a
Digital Commerce Sales
We distribute our national brands and own brand merchandise directly to consumers through our stores, website, app, and third-party marketplaces. Digital commerce sales, which we also refer to as direct sales, are defined as sales that originate online, whether through our website, at the store level or through a third-party marketplace. Our direct business is a critical component of our business and an area of significant growth opportunity for us. For fiscal 2023, our direct sales were
Financial Outlook
We plan to invest in our brand, stores and digital business in fiscal 2024, which will include increased marketing investments, as we look to accelerate our growth trajectory. Further, we believe that improvement in consumer discretionary spending will continue to be slow to recover given the current economic landscape caused by the past two years of elevated inflation and uncertainty over the upcoming presidential and congressional elections. We have built our plans around maintaining a minimum acceptable level of profitability, which we are setting at
- Sales of
$500.0 -$530.0 million - Net income of approximately
$17.0 million (assuming sales mid-point) - Adjusted EBITDA of approximately
$36.0 million (assuming sales mid-point)
Conference Call
The Company will hold a conference call to review its financial results on Thursday, March 21, 2023, at 9:00 a.m. ET.
To participate in the live webcast, please pre-register at: https://register.vevent.com/register/BI9d8547dc783d4a1a977f7e260da59481. Upon registering, you will be emailed a dial-in number, and unique PIN.
For listen-only, please join and register at: https://edge.media-server.com/mmc/p/t8pdmwvh. An archived version of the webcast may be accessed by visiting the "Events" section of the Company's investor relations website for up to one year.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
Non-GAAP Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains non-GAAP financial measures, including adjusted net income, adjusted net income per diluted share, adjusted EBITDA, adjusted EBITDA margin, and free cash flow. The presentation of these non-GAAP measures is not in accordance with GAAP and should not be considered superior to or as a substitute for net income, net income per diluted share or cash flow from operating activities or any other measure of performance derived in accordance with GAAP. In addition, not all companies calculate non-GAAP financial measures in the same manner and, accordingly, the non-GAAP measures presented in this release may not be comparable to similar measures used by other companies. The Company believes the inclusion of these non-GAAP measures help investors gain a better understanding of the Company’s performance, especially when comparing such results to previous periods, and that they are useful as an additional means for investors to evaluate the Company's operating results, when reviewed in conjunction with the Company's GAAP financial statements. Reconciliations of these non-GAAP measures to their comparable GAAP measures are provided in the tables below.
Adjusted net income and adjusted net income per diluted share is calculated by excluding any asset impairment charge (gain) and the loss from the termination of the retirement plans, subtracting the actual income tax provision (benefit) and applying an effective tax rate of
Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization and adjusted for the loss from the termination of the retirement plans and asset impairment charge (gain), if any. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by total sales. The Company believes that providing adjusted EBITDA and adjusted EBITDA margin is useful to investors to evaluate the Company’s performance and are key metrics to measure profitability and economic productivity.
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.
About Destination XL Group, Inc.
Destination XL Group, Inc. is the leading retailer of Men’s Big + Tall apparel that provides the Big + Tall man the freedom to choose his own style. Subsidiaries of Destination XL Group, Inc. operate DXL Big + Tall retail and outlet stores and Casual Male XL retail and outlet stores throughout the United States, and an e-commerce website, DXL.COM, and mobile app, which offer a multi-channel solution similar to the DXL store experience with the most extensive selection of online products available anywhere for Big + Tall men. The Company is headquartered in Canton, Massachusetts, and its common stock is listed on the Nasdaq Global Market under the symbol "DXLG." For more information, please visit the Company's investor relations website: https://investor.dxl.com.
Forward-Looking Statements
Certain statements and information contained in this press release constitute forward-looking statements under the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements that are preceded by, followed by or include words such as “believe,” “will,” “expect,” “may,” “plan,” “outlook,” or similar expressions. This press release and the conference call contain forward-looking statements regarding our outlook for fiscal 2024, including expected sales, net income, gross margin and adjusted EBITDA margin; marketing costs for fiscal 2024; expected capital expenditures in fiscal 2024; expected store openings and store conversions in fiscal 2024; our long-range strategic growth initiatives and our ability to achieve accelerated growth to increase market share in the future; our expected profitability and EBITDA margins; the size of the addressable big + tall market; our ability to achieve double-digit EBITDA margin within three years; the expected impact of our strategic growth initiatives, including with respect to raising brand awareness, store development and future alliances and collaborations; our ability to manage inventory; expected expansions of existing collaborations in 2024; expected completion of our website upgrade in 2024; and expected changes in our store portfolio and long-term plans for new or relocated stores. 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. 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 Securities and Exchange Commission, including without limitation, its Annual Report on Form 10-K filed on March 16, 2023, its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission that set forth certain risks and uncertainties that may have an impact on future results and direction of the Company, including risks relating to: changes in consumer spending in response to economic factors; the impact of rising inflation; the Israel-Hamas conflict and the ongoing Russian invasion of Ukraine on the global economy; potential labor shortages; and the Company’s ability to execute on its digital and store strategies, ability to grow its market share, predict customer tastes and fashion trends, forecast sales growth trends and compete successfully in the United States men’s big and tall apparel market.
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.
| DESTINATION XL GROUP, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Unaudited | ||||||||||||||||
| For the three months ended | For the fiscal year ended | |||||||||||||||
| February 3, 2024 | January 28, 2023 | February 3, 2024 | January 28, 2023 | |||||||||||||
| Sales | $ | 137,142 | $ | 143,878 | $ | 521,815 | $ | 545,838 | ||||||||
| Cost of goods sold, including occupancy | 72,626 | 75,280 | 269,393 | 273,240 | ||||||||||||
| Gross profit | 64,516 | 68,598 | 252,422 | 272,598 | ||||||||||||
| Expenses: | ||||||||||||||||
| Selling, general and administrative | 52,840 | 54,349 | 196,529 | 198,790 | ||||||||||||
| Impairment (gain) of assets | 116 | 239 | 116 | (159 | ) | |||||||||||
| Depreciation and amortization | 3,495 | 3,633 | 13,833 | 15,381 | ||||||||||||
| Total expenses | 56,451 | 58,221 | 210,478 | 214,012 | ||||||||||||
| Operating income | 8,065 | 10,377 | 41,944 | 58,586 | ||||||||||||
| Loss from termination of retirement plans | (1,459 | ) | — | (5,690 | ) | — | ||||||||||
| Interest income (expense), net | 729 | 99 | 2,137 | (251 | ) | |||||||||||
| Income before provision for income taxes | 7,335 | 10,476 | 38,391 | 58,335 | ||||||||||||
| Provision (benefit) for income taxes | 2,101 | 2,156 | 10,537 | (30,788 | ) | |||||||||||
| Net income | $ | 5,234 | $ | 8,320 | $ | 27,854 | $ | 89,123 | ||||||||
| Net income per share - basic | $ | 0.09 | $ | 0.13 | $ | 0.46 | $ | 1.42 | ||||||||
| Net income per share - diluted | $ | 0.08 | $ | 0.13 | $ | 0.43 | $ | 1.33 | ||||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||
| Basic | 59,361 | 62,517 | 61,018 | 62,825 | ||||||||||||
| Diluted | 62,498 | 66,281 | 64,305 | 66,890 | ||||||||||||
| DESTINATION XL GROUP, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| February 3, 2024 and January 28, 2023 | ||||||||
| (In thousands) | ||||||||
| Unaudited | ||||||||
| February 3, | January 28, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 27,590 | $ | 52,074 | ||||
| Short-term investments | 32,459 | — | ||||||
| Inventories | 80,968 | 93,004 | ||||||
| Other current assets | 12,228 | 8,934 | ||||||
| Property and equipment, net | 43,238 | 39,062 | ||||||
| Operating lease right-of-use assets | 138,118 | 124,356 | ||||||
| Deferred income taxes, net of valuation allowance | 21,533 | 31,455 | ||||||
| Intangible assets | 1,150 | 1,150 | ||||||
| Other assets | 457 | 563 | ||||||
| Total assets | $ | 357,741 | $ | 350,598 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable | $ | 17,353 | $ | 27,548 | ||||
| Accrued expenses and other liabilities | 36,898 | 41,581 | ||||||
| Operating leases | 154,537 | 144,241 | ||||||
| Stockholders' equity | 148,953 | 137,228 | ||||||
| Total liabilities and stockholders' equity | $ | 357,741 | $ | 350,598 | ||||
| CERTAIN COLUMNS IN THE FOLLOWING TABLES MAY NOT FOOT DUE TO ROUNDING |
| GAAP TO NON-GAAP RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| For the three months ended | For the fiscal year ended | ||||||||||||||||
| February 3, 2024 | January 28, 2023 | February 3, 2024 | January 28, 2023 | ||||||||||||||
| (in millions, except margin percentages) | |||||||||||||||||
| Net income, on a GAAP basis | $ | 5.2 | $ | 8.3 | $ | 27.9 | $ | 89.1 | |||||||||
| Add back: | |||||||||||||||||
| Impairment (gain) of assets | 0.1 | 0.2 | 0.1 | (0.2 | ) | ||||||||||||
| Loss from termination of retirement plans | 1.5 | — | 5.7 | — | |||||||||||||
| Depreciation and amortization | 3.5 | 3.6 | 13.8 | 15.4 | |||||||||||||
| Interest (income) expense | (0.7 | ) | (0.1 | ) | (2.1 | ) | 0.3 | ||||||||||
| Provision (benefit) for income taxes | 2.1 | 2.2 | 10.5 | (30.8 | ) | ||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 11.7 | $ | 14.2 | $ | 55.9 | $ | 73.8 | |||||||||
| Sales | $ | 137.1 | $ | 143.9 | $ | 521.8 | $ | 545.8 | |||||||||
| Adjusted EBITDA margin (non-GAAP), as a percentage of sales | 8.5 | % | 9.9 | % | 10.7 | % | 13.5 | % | |||||||||
| GAAP TO NON-GAAP RECONCILIATION OF ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER SHARE | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
| For the three months ended | For the fiscal year ended | |||||||||||||||||||||||||||||||
| February 3, 2024 | January 28, 2023 | February 3, 2024 | January 28, 2023 | |||||||||||||||||||||||||||||
| $ | Per diluted share | $ | Per diluted share | $ | Per diluted share | $ | Per diluted share | |||||||||||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||||||||||||||||
| Net income | $ | 5.2 | $ | 0.08 | $ | 8.3 | $ | 0.13 | $ | 27.9 | $ | 0.43 | $ | 89.1 | $ | 1.33 | ||||||||||||||||
| Adjust for impairment (gain) of assets | 0.1 | 0.2 | 0.1 | (0.2 | ) | |||||||||||||||||||||||||||
| Add back loss on termination of retirement plans | 1.5 | — | 5.7 | — | ||||||||||||||||||||||||||||
| Add back actual income tax provision (benefit) | 2.1 | 2.2 | 10.5 | (30.8 | ) | |||||||||||||||||||||||||||
| Add income tax provision, assuming a normal tax rate of | (2.4 | ) | (2.9 | ) | (11.9 | ) | (15.7 | ) | ||||||||||||||||||||||||
| Adjusted net income | $ | 6.5 | $ | 0.10 | $ | 7.8 | $ | 0.12 | $ | 32.3 | $ | 0.50 | $ | 42.5 | $ | 0.63 | ||||||||||||||||
| Weighted average number of common shares outstanding on a diluted basis | 62.5 | 66.3 | 64.3 | 66.9 | ||||||||||||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION OF FREE CASH FLOW | ||||||||
| (Unaudited) | ||||||||
| For the fiscal year ended | ||||||||
| (in millions) | February 3, 2024 | January 28, 2023 | ||||||
| Cash flow from operating activities (GAAP basis) | $ | 49.6 | $ | 59.9 | ||||
| Capital expenditures | (17.4 | ) | (9.6 | ) | ||||
| Free cash flow (non-GAAP) | $ | 32.2 | $ | 50.3 | ||||
| FISCAL 2024 FORECAST GAAP TO NON-GAAP ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN RECONCILIATION | ||||||||
| (Unaudited) | ||||||||
| Projected | ||||||||
| Fiscal 2024 | ||||||||
| (in millions, except per share data and percentages) | per diluted share | |||||||
| Sales at mid-point (52-week basis) | $ | 515.0 | ||||||
| Net income (GAAP basis) | 17.0 | $ | 0.27 | |||||
| Add back: | ||||||||
| Provision for income taxes | 6.3 | |||||||
| Interest income, net | (2.5 | ) | ||||||
| Depreciation and amortization | 15.2 | |||||||
| Adjusted EBITDA (non-GAAP basis) | $ | 36.0 | ||||||
| Adjusted EBITDA margin as a percentage of sales (non-GAAP basis) | 7.0 | % | ||||||
| Weighted average common shares outstanding - diluted | 62.5 | |||||||
Investor Contact:
Investor.relations@dxlg.com
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FAQ
What were Destination XL Group, Inc.'s (DXLG) total sales for fiscal year 2023?
What was the net income for fiscal year 2023 for DXLG?
What was DXLG's adjusted EBITDA for fiscal year 2023?
How did DXLG's comparable sales perform in fiscal year 2023?
What was the cash flow from operations for DXLG in fiscal year 2023?
Did DXLG have any outstanding debt as of February 3, 2024?
What are DXLG's future growth strategies?
What was the impact of the termination of retirement plans on DXLG's net income for fiscal year 2023?
