Destination XL Group, Inc. Reports Second Quarter Financial Results
Destination XL Group, Inc. (NASDAQ: DXLG) reported its Q2 fiscal 2024 results and revised full-year guidance. Key highlights include:
- Total sales of $124.8 million, down 10.9% from Q2 2023
- Net income of $0.04 per diluted share, compared to $0.18 in Q2 2023
- Adjusted EBITDA of $6.5 million (5.2% of sales) vs $22.9 million (16.4%) in Q2 2023
- Cash and investments of $63.2 million with no outstanding debt
- Comparable sales decreased 10.9%, with store sales down 10% and direct business down 12.8%
The company cited challenging retail conditions, reduced foot traffic, and lower conversion rates. Despite this, merchandise margins remained flat. DXL is revising its full-year guidance to sales of $470-$490 million (down from $500 million) and an adjusted EBITDA margin of approximately 6% (down from 7%).
Destination XL Group, Inc. (NASDAQ: DXLG) ha riportato i risultati del secondo trimestre dell'anno fiscale 2024 e ha rivisto le previsioni per l'intero anno. Tra i punti salienti ci sono:
- Vendite totali di 124,8 milioni di dollari, in calo del 10,9% rispetto al secondo trimestre del 2023
- Utile netto di 0,04 dollari per azione diluita, rispetto a 0,18 dollari nel secondo trimestre del 2023
- EBITDA rettificato di 6,5 milioni di dollari (5,2% delle vendite) rispetto a 22,9 milioni di dollari (16,4%) nel secondo trimestre del 2023
- Cassa e investimenti di 63,2 milioni di dollari senza debiti in sospeso
- Le vendite comparabili sono diminuite del 10,9%, con le vendite nei negozi in calo del 10% e il business diretto in calo del 12,8%
La società ha citato condizioni di vendita al dettaglio difficili, ridotto afflusso di clienti e tassi di conversione più bassi. Nonostante ciò, i margini sui prodotti sono rimasti stabili. DXL sta rivedendo le previsioni per l'intero anno a vendite di 470-490 milioni di dollari (in calo rispetto ai 500 milioni) e un margine EBITDA rettificato di circa il 6% (in calo dal 7%).
Destination XL Group, Inc. (NASDAQ: DXLG) reportó sus resultados del segundo trimestre del año fiscal 2024 y revisó las directrices para el año completo. Los aspectos destacados incluyen:
- Ventas totales de 124.8 millones de dólares, una caída del 10.9% con respecto al segundo trimestre de 2023
- Ingreso neto de 0.04 dólares por acción diluida, en comparación con 0.18 dólares en el segundo trimestre de 2023
- EBITDA ajustado de 6.5 millones de dólares (5.2% de las ventas) frente a 22.9 millones de dólares (16.4%) en el segundo trimestre de 2023
- Efectivo e inversiones de 63.2 millones de dólares sin deudas pendientes
- Las ventas comparables disminuyeron un 10.9%, con las ventas en tienda cayendo un 10% y el negocio directo cayendo un 12.8%
La compañía citó condiciones minoristas desafiantes, menor tráfico de clientes y tasas de conversión más bajas. A pesar de esto, los márgenes de mercancía se mantuvieron estables. DXL está revisando su guía para el año completo a ventas de entre 470 y 490 millones de dólares (bajando de 500 millones) y un margen EBITDA ajustado de aproximadamente 6% (bajando del 7%).
Destination XL Group, Inc. (NASDAQ: DXLG)는 2024 회계연도 2분기 결과를 발표하고 연간 가이드를 수정했습니다. 주요 하이라이트는 다음과 같습니다:
- 총 매출 1억 2480만 달러로, 2023년 2분기 대비 10.9% 감소
- 희석주당 순이익 0.04 달러, 2023년 2분기 0.18 달러 대비
- 조정된 EBITDA 650만 달러(매출의 5.2%)로, 2023년 2분기 2290만 달러(16.4%) 대비
- 현금 및 투자 6320만 달러, 부채 없음
- 동종 매출 10.9% 감소, 매장 판매는 10% 감소, 직거래 비즈니스는 12.8% 감소
회사는 힘든 소매 환경, 고객 방문 감소 및 낮은 전환율을 언급했습니다. 그럼에도 불구하고 상품 마진은 안정적으로 유지되었습니다. DXL은 연간 가이드를 4억 7000만~4억 9000만 달러로 수정하고(5억 달러에서 감소) 조정된 EBITDA 마진을 약 6%로 수정했습니다(7%에서 감소).
Destination XL Group, Inc. (NASDAQ: DXLG) a rapporté ses résultats du deuxième trimestre de l'exercice 2024 et a révisé ses prévisions pour l'année complète. Les points clés incluent :
- Ventes totales de 124,8 millions de dollars, en baisse de 10,9 % par rapport au deuxième trimestre 2023
- Résultat net de 0,04 dollar par action diluée, contre 0,18 dollar au deuxième trimestre 2023
- EBITDA ajusté de 6,5 millions de dollars (5,2 % des ventes) contre 22,9 millions de dollars (16,4 %) au deuxième trimestre 2023
- Trésorerie et investissements de 63,2 millions de dollars sans dettes en cours
- Les ventes comparables ont diminué de 10,9 %, les ventes en magasin ayant baissé de 10 % et les ventes directes de 12,8 %
L'entreprise a cité des conditions de vente au détail difficiles, une diminution du trafic piéton et des taux de conversion plus bas. Malgré cela, les marges de marchandise sont restées stables. DXL révise ses prévisions annuelles à des ventes de 470 à 490 millions de dollars (en baisse par rapport à 500 millions) et un marge d'EBITDA ajustée d'environ 6 % (en baisse par rapport à 7 %).
Destination XL Group, Inc. (NASDAQ: DXLG) hat die Ergebnisse für das zweite Quartal des Geschäftsjahres 2024 veröffentlicht und die Jahresprognose angepasst. Wichtige Highlights sind:
- Gesamtumsatz von 124,8 Millionen Dollar, ein Rückgang von 10,9% im Vergleich zum 2. Quartal 2023
- Nettogewinn von 0,04 Dollar pro verwässerter Aktie, verglichen mit 0,18 Dollar im 2. Quartal 2023
- Bereinigtes EBITDA von 6,5 Millionen Dollar (5,2% des Umsatzes) gegenüber 22,9 Millionen Dollar (16,4%) im 2. Quartal 2023
- Bargeld und Investitionen von 63,2 Millionen Dollar ohne ausstehende Schulden
- Vergleichbare Verkäufe sanken um 10,9%, wobei die Läden um 10% und das Direktgeschäft um 12,8% zurückgingen
Das Unternehmen berichtete von schwierigen Einzelhandelsbedingungen, verringertem Fußverkehr und niedrigeren Konversionsraten. Trotz dessen blieben die Warenmargen stabil. DXL überarbeitet seine Jahresprognose auf einen Umsatz von 470-490 Millionen Dollar (von 500 Millionen nach unten) und eine bereinigte EBITDA-Marge von etwa 6% (von 7% nach unten).
- Maintained flat merchandise margin despite sales challenges
- Strong balance sheet with $63.2 million in cash and no debt
- Launched new brand advertising campaign with positive results in test markets
- Successful alliance with Nordstrom to sell DXL's Big & Tall assortment on their digital marketplace
- Improved inventory turnover rate by almost 30% from fiscal 2019
- Total sales decreased 10.9% to $124.8 million in Q2 2024
- Comparable sales declined 10.9%, with store sales down 10% and direct business down 12.8%
- Net income per diluted share dropped to $0.04 from $0.18 in Q2 2023
- Adjusted EBITDA fell to $6.5 million (5.2% of sales) from $22.9 million (16.4%) in Q2 2023
- Revised full-year guidance downward for both sales and adjusted EBITDA margin
- Slowing new store rollout plans for 2025 due to current market conditions
Insights
Destination XL Group's Q2 results reveal significant challenges. Sales decreased by
The company's revised guidance, projecting sales of
Investors should monitor the company's ability to manage expenses and inventory levels, as well as the performance of new initiatives like the Nordstrom partnership and new store openings. The decision to reduce marketing spend and slow store expansion reflects a cautious approach in a challenging retail environment.
The
DXL's strategic pivot, including reducing new store openings from 15 to 10 in 2025 and reallocating marketing spend, shows adaptability. The Nordstrom marketplace collaboration and new eCommerce platform are promising initiatives to expand reach and improve online experience.
The increase in SG&A expenses to
DXL's digital commerce performance is concerning, with direct sales declining
However, the company's investment in a new eCommerce platform, set to be fully implemented by January 2025, could be a game-changer. This upgrade aims to address friction points, improve user experience and increase speed and agility. The Nordstrom marketplace partnership also shows promise in expanding DXL's digital reach.
Investors should closely monitor the impact of these digital initiatives on future quarters' performance. If successful, they could significantly boost DXL's omnichannel presence and help offset challenges in physical retail, potentially driving long-term growth despite current headwinds.
Sales of
CANTON, Mass., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Destination XL Group, Inc. (NASDAQ: DXLG), the leading integrated-commerce specialty retailer of Big + Tall men’s clothing and shoes, today reported operating results for the second quarter of fiscal 2024, and updated sales and earnings guidance for the fiscal year.
Second Quarter Financial Highlights
- Total sales for the second quarter were
$124.8 million , down10.9% from$140.0 million in the second quarter of fiscal 2023. Comparable sales for the second quarter of fiscal 2024 also decreased10.9% as compared to the second quarter of fiscal 2023. - Net income for the second quarter was
$0.04 per diluted share, as compared to net income of$0.18 per diluted share in the second quarter of fiscal 2023. - Adjusted EBITDA (a non-GAAP measure) for the second quarter was
$6.5 million , or5.2% of sales, as compared to$22.9 million , or16.4% of sales in the second quarter of fiscal 2023. - Total cash and investments were
$63.2 million at August 3, 2024, as compared to$62.8 million at July 29, 2023, with no outstanding debt for either period.
Management’s Comments
“Our second quarter results reflect a challenging retail apparel market punctuated by a lack of foot traffic to our stores and lower conversion rates in our direct business,” said Harvey Kanter, President and CEO. “During the quarter, our customers continued to feel the impact of inflationary pressures and macro-economic uncertainty on their discretionary spending. Customers gravitated towards promotions and lower price point goods, signaling a consumer who is carefully choosing where and how he spends his money. Despite a disappointing sales performance, we maintained a flat merchandise margin, with meaningfully less inventory and a strong balance sheet."
Mr. Kanter continued, “As we battle these sales headwinds, we remain focused on the aspects of the business within our control, including optimization of merchandise margins and managing expenses and inventory levels. We believe these operational efforts will position us to generate substantially improved results when the economic cycle reverses. The current environment has also forced us to take a hard look at our spend plans for the second half of the year. Consequently, we have made the difficult decision to pivot from the next phase of our brand campaign in the Fall, in favor of advertising spend that has a greater prospect of better stimulating traffic in the short term, and to slow our new store roll out in 2025 to lower our capital expenditure burden. Our near-term priority is to focus on our balance sheet, achieving profitable sales, and generating free cash flow.
“To be clear, we are committed to our growth strategy and, in that respect, remain enthusiastic about our brand campaign and new store development plans. In the second quarter, we made the following progress:
Marketing & Brand Building: We launched our new brand advertising campaign on May 13th to build awareness of our brand. The campaign ran in a three-matched-market test in Boston, Detroit, and St. Louis and the results were positive in all three markets, with increased traffic, sessions, and customer acquisition. Our initial plan was to run a second similar campaign in the second half of the year: however, given current market conditions, we believe pivoting the brand marketing dollars back into our traditional marketing channels will be more productive.
Store Development: Our initiative to open new stores was driven by insights into the frustrations our customers have with limited access to our stores. Consumers told us that they do not shop with us because no store is near them. On August 17th, we opened our third store this year with five more expected later this year. We are evaluating our current rollout schedule and will likely reduce the number of expected store openings in fiscal 2025 from 15 to 10.
New Website Platform: We are transitioning to a new and improved eCommerce platform. The platform addresses friction online and will drive a richer and simpler consumer experience, as well as drive measurably greater speed and agility. We completed our first phase of this project in the first quarter and our second phase is expected to be released by the end of September. The last phase is on schedule to be completed in January 2025.
Alliances & Collaborations: Last quarter we announced our alliance with Nordstrom to launch DXL's Big & Tall assortment on their digital marketplace platform. Our merchandise offering launched on the marketplace on May 28th. To date, we have been pleased with the results and we are currently looking to expand our current product offering. We believe this collaboration will allow us to bring the DXL experience beyond our four walls and directly to the Nordstrom customer, thereby further extending DXL’s relationship with the female consumer.
"While we are frustrated by the current macroeconomic sales challenges, we strongly believe in our long-term growth strategy. In the near term, we will be pragmatic with our investment spending and will do so with a focus on profitability," Kanter concluded.
Second Quarter Results
Sales
Total sales for the second quarter of fiscal 2024 were
The comparable sales decrease of
Gross Margin
For the second quarter of fiscal 2024, our gross margin rate, inclusive of occupancy costs, was
Our gross margin rate decreased by 210-basis points, which was driven by an increase in occupancy costs, as a percentage of sales, primarily due to the deleveraging of sales and increased rents as a result of lease extensions. Our merchandise margin, which was flat to the second quarter of fiscal 2023, was achieved despite an increase in markdowns associated with selected price matching for some of our national brands, as well as markdowns on seasonal merchandise to ensure inventory levels remain healthy as we head into the fall season. These increases were offset by favorable shipping costs and a reduction in loyalty expense. For 2024, we expect gross margin rates to be approximately 60-110-basis points lower than fiscal 2023 primarily related to the deleveraging of occupancy on a lower sales base.
Selling, General & Administrative
As a percentage of sales, SG&A (selling, general and administrative) expenses for the second quarter of fiscal 2024 were
On a dollar basis, SG&A expenses increased by
Marketing costs were
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 and direct operating costs, represented
Interest Income, Net
Net interest income for the second quarter of fiscal 2024 was
Income Taxes
Our tax provision for income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any. Each quarter, we update our estimate of the annual effective tax rate and make a year-to-date adjustment to the provision.
For the second quarter of fiscal 2024, the effective tax rate was
Net Income
For the second quarter of fiscal 2024, net income was
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP measure, for the second quarter of fiscal 2024 was
Cash Flow
Cash flow from operations for the first six months of fiscal 2024 was
| For the six months ended | ||||||||
| (in millions) | August 3, 2024 | July 29, 2023 | ||||||
| Cash flow from operating activities (GAAP basis) | $ | 16.0 | $ | 26.2 | ||||
| Capital expenditures, excluding store development | (7.6 | ) | (3.9 | ) | ||||
| Free Cash Flow before capital expenditures for store development (non-GAAP basis) | $ | 8.4 | $ | 22.4 | ||||
| Capital expenditures for store development | (5.2 | ) | (0.8 | ) | ||||
| Free Cash Flow (non-GAAP basis) | $ | 3.2 | $ | 21.6 | ||||
Non-GAAP Measures
Adjusted EBITDA, adjusted EBITDA margin, free cash flow before capital expenditures for store development and free cash flow are non-GAAP financial measures. Please see “Non-GAAP Measures” below and reconciliations of these non-GAAP measures to the comparable GAAP measures that follow in the tables below.
Balance Sheet & Liquidity
As of August 3, 2024, we had cash and investments of
As of August 3, 2024, our inventory decreased approximately
Retail Store Information
The following is a summary of our retail square footage since the end of fiscal 2021 through the end of the second quarter of fiscal 2024:
| At August 3, 2024 | 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) | # of Stores | Sq Ft. (000’s) | |||||||||||||||||
| DXL retail | 233 | 1,729 | 232 | 1,725 | 218 | 1,663 | 220 | 1,678 | ||||||||||||||||
| DXL outlets | 15 | 76 | 15 | 76 | 16 | 80 | 16 | 80 | ||||||||||||||||
| CMXL retail | 17 | 55 | 17 | 55 | 28 | 92 | 35 | 115 | ||||||||||||||||
| CMXL outlets | 19 | 57 | 19 | 57 | 19 | 57 | 19 | 57 | ||||||||||||||||
| Total | 284 | 1,917 | 283 | 1,913 | 281 | 1,892 | 290 | 1,930 | ||||||||||||||||
During the first six months of fiscal 2024, we opened two new DXL stores, located in Coon Rapids, Minnesota and Thousand Oaks, California, completed a DXL remodel and closed one of our DXL stores. During the second half of fiscal 2024, we expect to open six additional DXL stores, convert five Casual Male stores to the DXL store format and remodel four more of our existing DXL stores. We expect our capital expenditures to range from
Digital Commerce Information
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 the second quarter of fiscal 2024, our direct sales were
Financial Outlook
As a result of continuing headwinds in men's apparel and our sales results for the second quarter, we are revising our full year guidance. Based on our current sales trends, we are guiding to sales of
Conference Call
The Company will hold a conference call to review its financial results on Thursday, August 29, 2024, at 9:00 a.m. ET.
To participate in the live webcast, please pre-register at: https://register.vevent.com/register/BI648dfc60556f441ea1ca4ecc8af13faa
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/ydy6e6n4. 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 EBITDA, adjusted EBITDA margin, free cash flow before capital expenditures for store development, 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 flows 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 EBITDA is calculated as earnings before interest, taxes, depreciation and amortization and adjusted for asset impairment charges (gain) and the loss from the termination of retirement plans, 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 development. Free cash flow is calculated as cash flow from operating activities, less capital expenditures and excludes the mandatory and discretionary repayment of debt. Free cash flow before capital expenditures for store development is calculated as cash flow from operating activities less capital expenditures other than capital expenditures for store development. Capital expenditures for store development includes capital expenditures for new stores, conversions of Casual Male XL stores to DXL and remodels. Capital expenditures related to store relocations and maintenance are not included in store development.
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 statements regarding our guidance for fiscal 2024, including expected sales, gross margin rate and adjusted EBITDA margin; expected sales trends for fiscal 2024; expected marketing costs and expected capital expenditures in fiscal 2024; expected store openings and store conversions in the remainder of fiscal 2024 and fiscal 2025; our long-range strategic plan and the expected impact of our strategic initiatives on future growth, including with respect to marketing efforts and raising brand awareness, store development and future alliances and collaborations; our ability to manage inventory; expected changes in our store portfolio and long-term plans for new or relocated stores; the expected completion of our rollout of our improved eCommerce platform; and our ability to achieve profitable sales and generate free cash flow. The discussion of forward-looking information requires the 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 Securities and Exchange Commission, including without limitation, its Annual Report on Form 10-K filed on March 21, 2024, 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 the direction of the Company, including risks relating to: changes in consumer spending in response to economic factors; the impact of inflation with rising costs and high interest rates; the impact of ongoing worldwide conflicts, including 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 marketing, digital, store and collaboration 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 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 six months ended | |||||||||||||||
| August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | |||||||||||||
| Sales | $ | 124,820 | $ | 140,043 | $ | 240,309 | $ | 265,485 | ||||||||
| Cost of goods sold including occupancy | 64,649 | 69,664 | 124,456 | 134,190 | ||||||||||||
| Gross profit | 60,171 | 70,379 | 115,853 | 131,295 | ||||||||||||
| Expenses: | ||||||||||||||||
| Selling, general and administrative | 53,662 | 47,446 | 101,185 | 95,727 | ||||||||||||
| Depreciation and amortization | 3,385 | 3,468 | 6,663 | 6,945 | ||||||||||||
| Total expenses | 57,047 | 50,914 | 107,848 | 102,672 | ||||||||||||
| Operating income | 3,124 | 19,465 | 8,005 | 28,623 | ||||||||||||
| Loss on termination of retirement plans | — | (4,174 | ) | — | (4,174 | ) | ||||||||||
| Interest income, net | 551 | 505 | 1,121 | 844 | ||||||||||||
| Income before provision for income taxes | 3,675 | 15,796 | 9,126 | 25,293 | ||||||||||||
| Provision for income taxes | 1,292 | 4,163 | 2,950 | 6,693 | ||||||||||||
| Net income | $ | 2,383 | $ | 11,633 | $ | 6,176 | $ | 18,600 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.04 | $ | 0.19 | $ | 0.11 | $ | 0.30 | ||||||||
| Diluted | $ | 0.04 | $ | 0.18 | $ | 0.10 | $ | 0.28 | ||||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||
| Basic | 58,233 | 61,977 | 58,135 | 62,334 | ||||||||||||
| Diluted | 61,117 | 65,449 | 61,035 | 65,829 | ||||||||||||
| DESTINATION XL GROUP, INC. | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| August 3, 2024, February 3, 2024 and July 29, 2023 | ||||||||||||
| (In thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| August 3, | February 3, | July 29, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| ASSETS | ||||||||||||
| Cash and cash equivalents | $ | 21,475 | $ | 27,590 | $ | 19,246 | ||||||
| Short-term investments | 41,732 | 32,459 | 43,536 | |||||||||
| Inventories | 78,612 | 80,968 | 87,532 | |||||||||
| Other current assets | 9,875 | 12,228 | 7,638 | |||||||||
| Property and equipment, net | 47,791 | 43,238 | 35,397 | |||||||||
| Operating lease right-of-use assets | 163,246 | 138,118 | 132,930 | |||||||||
| Intangible assets | 1,150 | 1,150 | 1,150 | |||||||||
| Deferred tax assets, net of valuation allowance | 19,403 | 21,533 | 23,966 | |||||||||
| Other assets | 484 | 457 | 565 | |||||||||
| Total assets | $ | 383,768 | $ | 357,741 | $ | 351,960 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Accounts payable | $ | 22,576 | $ | 17,353 | $ | 20,899 | ||||||
| Accrued expenses and other liabilities | 27,604 | 36,898 | 31,327 | |||||||||
| Operating leases | 176,634 | 154,537 | 149,634 | |||||||||
| Stockholders' equity | 156,954 | 148,953 | 150,100 | |||||||||
| Total liabilities and stockholders' equity | $ | 383,768 | $ | 357,741 | $ | 351,960 | ||||||
| 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 six months ended | ||||||||||||||||
| August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||
| (in millions) | |||||||||||||||||
| Net income (GAAP basis) | $ | 2.4 | $ | 11.6 | $ | 6.2 | $ | 18.6 | |||||||||
| Add back: | |||||||||||||||||
| Loss on termination of retirement plans | — | 4.2 | — | 4.2 | |||||||||||||
| Provision for income taxes | 1.3 | 4.2 | 3.0 | 6.7 | |||||||||||||
| Interest income, net | (0.6 | ) | (0.5 | ) | (1.1 | ) | (0.8 | ) | |||||||||
| Depreciation and amortization | 3.4 | 3.5 | 6.7 | 6.9 | |||||||||||||
| Adjusted EBITDA (non-GAAP basis) | $ | 6.5 | $ | 22.9 | $ | 14.7 | $ | 35.6 | |||||||||
| Sales | $ | 124.8 | $ | 140.0 | $ | 240.3 | $ | 265.5 | |||||||||
| Adjusted EBITDA margin (non-GAAP), as a percentage of sales | 5.2 | % | 16.4 | % | 6.1 | % | 13.4 | % | |||||||||
| GAAP TO NON-GAAP RECONCILIATION OF FREE CASH FLOW (unaudited) | ||||||||
| For the six months ended | ||||||||
| (in millions) | August 3, 2024 | July 29, 2023 | ||||||
| Cash flow from operating activities (GAAP basis) | $ | 16.0 | $ | 26.2 | ||||
| Capital expenditures, excluding store development | (7.6 | ) | (3.9 | ) | ||||
| Free Cash Flow before capital expenditures for store development (non-GAAP basis) | $ | 8.4 | $ | 22.4 | ||||
| Capital expenditures for store development | (5.2 | ) | (0.8 | ) | ||||
| Free Cash Flow (non-GAAP basis) | $ | 3.2 | $ | 21.6 | ||||
| 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 (mid-point of guidance) | $ | 480.0 | |||||||
| Net income (GAAP basis) | 10.9 | $ | 0.19 | ||||||
| Add back: | |||||||||
| Provision for income taxes | 5.3 | ||||||||
| Interest income, net | (2.4 | ) | |||||||
| Depreciation and amortization | 15.0 | ||||||||
| Adjusted EBITDA (non-GAAP basis) | $ | 28.8 | |||||||
| Adjusted EBITDA margin as a percentage of sales (non-GAAP basis) | 6.0 | % | |||||||
| Weighted average common shares outstanding - diluted | 61.5 | ||||||||
Investor Contact:
investor.relations@dxlg.com
(603) 933-0541
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