Destination XL Group, Inc. Reports Third Quarter Financial Results
Destination XL Group (DXLG) reported challenging Q3 2024 financial results with total sales of $107.5 million, down 9.8% from Q3 2023. The company posted a net loss of $(0.03) per diluted share, compared to net income of $0.06 per share in Q3 2023. Comparable sales decreased 11.3%, with store sales down 9.9% and direct business down 14.7%. Adjusted EBITDA was $1.0 million (1.0% of sales), compared to $8.6 million (7.3% of sales) in Q3 2023. The company maintained $43.0 million in cash with no debt, and repurchased 3.6 million shares for $10.2 million. Due to continued headwinds, DXLG lowered its guidance, expecting fiscal 2024 sales at approximately $470.0 million with adjusted EBITDA guidance reduced to 4.5% from 6.0%.
Il gruppo Destination XL (DXLG) ha riportato risultati finanziari del Q3 2024 difficili, con vendite totali di 107,5 milioni di dollari, in calo del 9,8% rispetto al Q3 2023. L'azienda ha registrato una perdita netta di $(0,03) per azione diluita, rispetto a un utile netto di 0,06 dollari per azione nel Q3 2023. Le vendite comparable sono diminuite dell'11,3%, con vendite nei negozi in calo del 9,9% e il business diretto in calo del 14,7%. L'EBITDA rettificato è stato di 1,0 milione di dollari (1,0% delle vendite), rispetto a 8,6 milioni di dollari (7,3% delle vendite) nel Q3 2023. L'azienda ha mantenuto 43,0 milioni di dollari in contante senza debiti ed ha riacquistato 3,6 milioni di azioni per 10,2 milioni di dollari. A causa di continue difficoltà, DXLG ha ridotto le sue previsioni, aspettandosi vendite fiscali 2024 di circa 470,0 milioni di dollari con una guida sull'EBITDA rettificato ridotto al 4,5% dal 6,0%.
Destination XL Group (DXLG) informó resultados financieros desafiantes del Q3 2024, con ventas totales de 107,5 millones de dólares, una disminución del 9,8% en comparación con el Q3 2023. La compañía registró una pérdida neta de $(0,03) por acción diluida, en comparación con una ganancia neta de 0,06 dólares por acción en el Q3 2023. Las ventas comparables disminuyeron un 11,3%, con ventas en tienda cayendo un 9,9% y el negocio directo disminuyendo un 14,7%. El EBITDA ajustado fue de 1,0 millón de dólares (1,0% de las ventas), en comparación con 8,6 millones de dólares (7,3% de las ventas) en el Q3 2023. La compañía mantuvo 43,0 millones de dólares en efectivo sin deudas, y recompró 3,6 millones de acciones por 10,2 millones de dólares. Debido a las continuas dificultades, DXLG redujo sus previsiones, esperando ventas fiscales 2024 de aproximadamente 470,0 millones de dólares con la guía del EBITDA ajustado reducida al 4,5% desde el 6,0%.
Destination XL 그룹(DXLG)은 2024년 3분기에 도전적인 재무 결과를 보고했으며, 총 판매액은 1억 750만 달러로 2023년 3분기에서 9.8% 감소했습니다. 회사는 희석 주당 $(0.03)의 순손실을 기록했으며, 이는 2023년 3분기에 주당 0.06 달러의 순이익과 비교됩니다. 비교 가능한 매출은 11.3% 감소했으며, 매장 매출은 9.9% 감소하고 직접 사업은 14.7% 감소했습니다. 조정된 EBITDA는 100만 달러(판매의 1.0%)였으며, 2023년 3분기의 860만 달러(판매의 7.3%)와 비교됩니다. 회사는 부채 없이 4300만 달러의 현금을 유지하고 있으며, 1020만 달러에 360만 주를 재매입했습니다. 지속적인 역풍으로 인해 DXLG는 매출 전망을 낮췄으며, 2024 회계연도 매출을 약 4억 7000만 달러로 예상하고 조정된 EBITDA 가이드를 6.0%에서 4.5%로 하향 조정했습니다.
Destination XL Group (DXLG) a signalé des résultats financiers difficiles pour le T3 2024 avec un chiffre d'affaires total de 107,5 millions de dollars, en baisse de 9,8 % par rapport au T3 2023. L'entreprise a enregistré une perte nette de $(0,03) par action diluée, par rapport à un bénéfice net de 0,06 dollar par action au T3 2023. Les ventes comparables ont diminué de 11,3 %, avec des ventes en magasin en baisse de 9,9 % et le chiffre d'affaires direct en recul de 14,7 %. L'EBITDA ajusté s'élevait à 1 million de dollars (1,0 % des ventes), contre 8,6 millions de dollars (7,3 % des ventes) au T3 2023. L'entreprise a maintenu 43 millions de dollars en liquidités sans dettes et a racheté 3,6 millions d'actions pour 10,2 millions de dollars. En raison des vents contraires persistants, DXLG a abaissé ses prévisions, s'attendant à des ventes d'environ 470 millions de dollars pour l'exercice 2024, la prévision de l'EBITDA ajusté étant réduite à 4,5 % contre 6,0 %.
Die Destination XL Group (DXLG) berichtete von herausfordernden Finanzergebnissen im Q3 2024 mit Gesamterlösen von 107,5 Millionen Dollar, was einem Rückgang von 9,8% im Vergleich zum Q3 2023 entspricht. Das Unternehmen wies einen Nettoverlust von $(0,03) pro verwässerter Aktie aus, verglichen mit einem Nettogewinn von 0,06 Dollar pro Aktie im Q3 2023. Die vergleichbaren Umsätze sanken um 11,3%, wobei die Umsätze in den Geschäften um 9,9% zurückgingen und das direkte Geschäft um 14,7% fiel. Das bereinigte EBITDA betrug 1,0 Millionen Dollar (1,0% der Umsätze), verglichen mit 8,6 Millionen Dollar (7,3% der Umsätze) im Q3 2023. Das Unternehmen hielt 43,0 Millionen Dollar in bar ohne Schulden und kaufte 3,6 Millionen Aktien für 10,2 Millionen Dollar zurück. Aufgrund anhaltender Gegenwinde senkte DXLG seine Prognose und erwartet für das Geschäftsjahr 2024 einen Umsatz von etwa 470,0 Millionen Dollar, wobei die Prognose für das bereinigte EBITDA von 6,0% auf 4,5% herabgesetzt wurde.
- No outstanding debt and maintained $43.0 million in cash position
- Healthy inventory management with clearance at 9.2% of total inventory
- Inventory turnover rate improved by over 30% from fiscal 2019
- Executed $10.2 million in share repurchases
- Total sales declined 9.8% to $107.5 million in Q3
- Net loss of $(0.03) per diluted share vs. $0.06 profit last year
- Comparable sales decreased 11.3% (stores -9.9%, direct -14.7%)
- Adjusted EBITDA dropped to $1.0 million from $8.6 million YoY
- Lowered full-year guidance with adjusted EBITDA target cut to 4.5% from 6.0%
- Gross margin declined 240 basis points to 45.1%
Insights
The Q3 results reveal significant challenges for DXLG, with
The deterioration in Adjusted EBITDA to
The shift toward private-label merchandise and lower price points indicates continued consumer spending pressure. While inventory management remains solid at
Sales of
CANTON, Mass., Nov. 22, 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 third quarter of fiscal 2024, and updated sales and earnings guidance for the fiscal year.
Third Quarter Financial Highlights
- Total sales for the third quarter were
$107.5 million , down9.8% from$119.2 million in the third quarter of fiscal 2023. Comparable sales for the third quarter of fiscal 2024 decreased11.3% as compared to the third quarter of fiscal 2023. - Net loss for the third quarter was
$(0.03) per diluted share, as compared to net income of$0.06 per diluted share in the third quarter of fiscal 2023. - Adjusted EBITDA (a non-GAAP measure) for the third quarter was
$1.0 million , or1.0% of sales, as compared to$8.6 million , or7.3% of sales in the third quarter of fiscal 2023. - Total cash and investments were
$43.0 million at November 2, 2024, as compared to$60.4 million at October 28, 2023, with no outstanding debt for either period. - Repurchased 3.6 million shares of common stock for
$10.2 million , or an average cost of$2.85 per share, pursuant to a$15.0 million stock repurchase program approved during the third quarter of fiscal 2024.
Management’s Comments
"DXL’s business continued to be challenged in the third quarter by consumer spending headwinds which resulted in lower traffic to our stores and lower conversion online. The consumer has been very price conscious, and our customers are gravitating toward our more moderate and entry-level price points. Despite these challenges, we have maintained our disciplined operating regimen, and we have avoided a material erosion in merchandise margin, while keeping our inventory position healthy and controlling our operating expenses," said Harvey Kanter, President and Chief Executive Officer.
"As we head into the fourth quarter, we will remain focused on achieving profitable sales, generating free cash flow and maintaining a healthy balance sheet. While we expect that consumer spending headwinds will persist into the fourth quarter, we are optimistic. With inflation stabilizing, interest rates coming down and the election now behind us, we believe that consumer sentiment will recover over time. Until our Big + Tall consumer is ready to more actively engage with DXL, we will continue to look for opportunities to drive sales through a mix of promotional activities and limited advertising. As I provide an update on our strategic initiates, it is important to note that we are proceeding cautiously until the macroenvironment improves by pausing our brand campaign and slowing the velocity of new store openings.
Marketing & Brand Building: In the second quarter of fiscal 2024, we launched our new brand advertising campaign 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. However, as we previously disclosed, given current market conditions, we have paused our brand campaign at this time and are instead investing our marketing dollars back into our traditional marketing channels that will be more productive, including a video campaign on various social media platforms.
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 or convenient to them. During the third quarter, we opened two new stores for a total of four new stores year to date, with four additional stores opening in the fourth quarter. We are developing our fiscal 2025 store development schedule and are targeting 8 new store openings, down from our previous expectation of 10 new store openings.
New Website Platform: We are making significant progress in our transition to a new and improved eCommerce platform, with
Alliances & Collaborations: In the second quarter of fiscal 2024, we launched our DXL Big + Tall merchandise assortment on Nordstrom's digital marketplace platform and currently have 37 brands and over 1,400 styles available on the platform, with plans for an additional 500 styles in the next month. 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."
"Pulling back on parts of our initiatives was prudent to ensure that we remain fiscally responsible with our investment spending and remain focused on near-term profitability and positive free cash flow," Kanter concluded.
Third Quarter Results
Sales
Total sales for the third quarter of fiscal 2024 were
The comparable sales decrease of
Gross Margin
For the third quarter of fiscal 2024, our gross margin rate, inclusive of occupancy costs, was
Our gross margin rate decreased by 240 basis points, which was driven by an increase of 220 basis points in occupancy costs, as a percentage of sales, primarily due to the deleveraging of sales and increased rents as a result of lease extensions. Merchandise margin for the third quarter decreased by 20 basis points, as compared to the third quarter of fiscal 2023, primarily due to an increase in markdown activity on seasonal merchandise as well as an increase in inbound freight. These increases were partially offset by favorable outbound shipping costs, a decrease in loyalty expense and a shift in product mix. For 2024, we expect gross margin rates to be approximately 130 to 180 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 third quarter of fiscal 2024 were
On a dollar basis, SG&A expenses decreased 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 third 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 third quarter of fiscal 2024, the effective tax rate was
Net Income (Loss)
For the third quarter of fiscal 2024, net loss was
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP measure, for the third quarter of fiscal 2024 was
Cash Flow
Cash flow from operations for the first nine months of fiscal 2024 was
Free cash flow, before capital expenditures for store development, a non-GAAP measure, was
Free cash flow, a non-GAAP measure, was
| For the nine months ended | |||||||||
| (in millions) | November 2, 2024 | October 28, 2023 | |||||||
| Cash flow from operating activities (GAAP basis) | $ | 12.5 | $ | 33.1 | |||||
| Capital expenditures, excluding store development | (10.0 | ) | (6.6 | ) | |||||
| Free Cash Flow before capital expenditures for store development (non-GAAP basis) | $ | 2.5 | $ | 26.5 | |||||
| Capital expenditures for store development | (9.4 | ) | (3.8 | ) | |||||
| Free Cash Flow (non-GAAP basis) | $ | (7.0 | ) | $ | 22.7 | ||||
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 November 2, 2024, we had cash and investments of
As of November 2, 2024, our inventory decreased approximately
Stock Repurchase Program
In September 2024, our Board of Directors approved a stock repurchase program. Under the stock repurchase program, we may repurchase up to
Retail Store Information
The following is a summary of our retail square footage since the end of fiscal 2021 through the end of the third quarter of fiscal 2024:
| At November 2, 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 | 239 | 1,753 | 232 | 1,725 | 218 | 1,663 | 220 | 1,678 | ||||||||||||||||
| DXL outlets | 15 | 76 | 15 | 76 | 16 | 80 | 16 | 80 | ||||||||||||||||
| CMXL retail | 12 | 37 | 17 | 55 | 28 | 92 | 35 | 115 | ||||||||||||||||
| CMXL outlets | 19 | 57 | 19 | 57 | 19 | 57 | 19 | 57 | ||||||||||||||||
| Total | 285 | 1,923 | 283 | 1,913 | 281 | 1,892 | 290 | 1,930 | ||||||||||||||||
During the first nine months of fiscal 2024, we opened four new DXL stores, relocated one DXL store, converted four Casual Male XL stores to the DXL format, completed four DXL remodels, closed one Casual Male XL store and one DXL store. We expect to open four additional DXL stores, convert another Casual Male store to the DXL store format and complete one additional DXL remodel before the end of fiscal 2024. 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 third quarter of fiscal 2024, our direct sales were
Financial Outlook
As a result of continuing headwinds in men's apparel and our sales results through the first nine months of fiscal 2024, we are revising our full year guidance, with expected sales for fiscal 2024 to be at the low end of our previous guidance, which is approximately
Conference Call
The Company will hold a conference call to review its financial results on Friday, November 22, 2024, at 9:00 a.m. ET.
To participate in the live webcast, please pre-register at: https://register.vevent.com/register/BI086e2ca09b4247779965833973a12671
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/x2e2arje. 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 (loss), net income (loss) 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 on the global economy, including the Israel-Hamas conflict and the ongoing Russian invasion of Ukraine; 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 nine months ended | |||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | |||||||||||||
| Sales | $ | 107,503 | $ | 119,188 | $ | 347,812 | $ | 384,673 | ||||||||
| Cost of goods sold including occupancy | 59,064 | 62,577 | 183,520 | 196,767 | ||||||||||||
| Gross profit | 48,439 | 56,611 | 164,292 | 187,906 | ||||||||||||
| Expenses: | ||||||||||||||||
| Selling, general and administrative | 47,409 | 47,962 | 148,594 | 143,689 | ||||||||||||
| Depreciation and amortization | 3,569 | 3,393 | 10,232 | 10,338 | ||||||||||||
| Total expenses | 50,978 | 51,355 | 158,826 | 154,027 | ||||||||||||
| Operating income (loss) | (2,539 | ) | 5,256 | 5,466 | 33,879 | |||||||||||
| Loss on termination of retirement plans | — | (57 | ) | — | (4,231 | ) | ||||||||||
| Interest income, net | 552 | 564 | 1,673 | 1,408 | ||||||||||||
| Income (loss) before provision (benefit) for income taxes | (1,987 | ) | 5,763 | 7,139 | 31,056 | |||||||||||
| Provision (benefit) for income taxes | (182 | ) | 1,743 | 2,768 | 8,436 | |||||||||||
| Net income (loss) | $ | (1,805 | ) | $ | 4,020 | $ | 4,371 | $ | 22,620 | |||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | 0.07 | $ | 0.08 | $ | 0.37 | |||||||
| Diluted | $ | (0.03 | ) | $ | 0.06 | $ | 0.07 | $ | 0.35 | |||||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||
| Basic | 57,135 | 60,169 | 57,801 | 61,612 | ||||||||||||
| Diluted | 57,135 | 63,464 | 60,642 | 64,995 | ||||||||||||
| DESTINATION XL GROUP, INC. | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
| November 2, 2024, February 3, 2024 and October 28, 2023 | |||||||||||
| (In thousands) | |||||||||||
| (unaudited) | |||||||||||
| November 2, | February 3, | October 28, | |||||||||
| 2024 | 2024 | 2023 | |||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 7,108 | $ | 27,590 | $ | 10,723 | |||||
| Short-term investments | 35,851 | 32,459 | 49,632 | ||||||||
| Inventories | 89,139 | 80,968 | 99,858 | ||||||||
| Other current assets | 8,159 | 12,228 | 10,287 | ||||||||
| Property and equipment, net | 51,988 | 43,238 | 38,429 | ||||||||
| Operating lease right-of-use assets | 167,814 | 138,118 | 139,907 | ||||||||
| Intangible assets | 1,150 | 1,150 | 1,150 | ||||||||
| Deferred tax assets, net of valuation allowance | 19,609 | 21,533 | 22,223 | ||||||||
| Other assets | 503 | 457 | 451 | ||||||||
| Total assets | $ | 381,321 | $ | 357,741 | $ | 372,660 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Accounts payable | $ | 28,013 | $ | 17,353 | $ | 28,256 | |||||
| Accrued expenses and other liabilities | 26,728 | 36,898 | 33,297 | ||||||||
| Operating leases | 181,124 | 154,537 | 160,340 | ||||||||
| Stockholders' equity | 145,456 | 148,953 | 150,767 | ||||||||
| Total liabilities and stockholders' equity | $ | 381,321 | $ | 357,741 | $ | 372,660 | |||||
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 nine months ended | |||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | |||||||||||||
| (in millions) | ||||||||||||||||
| Net income (loss) (GAAP basis) | $ | (1.8 | ) | $ | 4.0 | $ | 4.4 | $ | 22.6 | |||||||
| Add back: | ||||||||||||||||
| Loss on termination of retirement plans | — | 0.1 | — | 4.2 | ||||||||||||
| Provision (benefit) for income taxes | (0.2 | ) | 1.7 | 2.8 | 8.4 | |||||||||||
| Interest income, net | (0.6 | ) | (0.6 | ) | (1.7 | ) | (1.4 | ) | ||||||||
| Depreciation and amortization | 3.6 | 3.4 | 10.2 | 10.3 | ||||||||||||
| Adjusted EBITDA (non-GAAP basis) | $ | 1.0 | $ | 8.6 | $ | 15.7 | $ | 44.2 | ||||||||
| Sales | $ | 107.5 | $ | 119.2 | $ | 347.8 | $ | 384.7 | ||||||||
| Adjusted EBITDA margin (non-GAAP), as a percentage of sales | 1.0 | % | 7.3 | % | 4.5 | % | 11.5 | % | ||||||||
| GAAP TO NON-GAAP RECONCILIATION OF FREE CASH FLOW (unaudited) | ||||||||
| For the nine months ended | ||||||||
| (in millions) | November 2, 2024 | October 28, 2023 | ||||||
| Cash flow from operating activities (GAAP basis) | $ | 12.5 | $ | 33.1 | ||||
| Capital expenditures, excluding store development | (10.0 | ) | (6.6 | ) | ||||
| Free Cash Flow before capital expenditures for store development (non-GAAP basis) | $ | 2.5 | $ | 26.5 | ||||
| Capital expenditures for store development | (9.4 | ) | (3.8 | ) | ||||
| Free Cash Flow (non-GAAP basis) | $ | (7.0 | ) | $ | 22.7 | |||
| 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 (low-end of guidance) | $ | 470.0 | ||||||
| Net income (GAAP basis) | 5.6 | $ | 0.09 | |||||
| Add back: | ||||||||
| Provision for income taxes | 3.4 | |||||||
| Interest income, net | (2.3 | ) | ||||||
| Depreciation and amortization | 14.5 | |||||||
| Adjusted EBITDA (non-GAAP basis) | $ | 21.2 | ||||||
| Adjusted EBITDA margin as a percentage of sales (non-GAAP basis) | 4.5 | % | ||||||
| Weighted average common shares outstanding - diluted | 60.0 | |||||||
| * forecasted weighted average common shares outstanding does not reflect share repurchase activity | ||||||||
Investor Contact:
investor.relations@dxlg.com
(603) 933-0541
FAQ
What were DXLG's Q3 2024 sales and earnings results?
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