Destination XL holiday sales fall below last year, updates Q4 guidance

By

Obi Anyanwu

Published
Jan 10, 2017

Destination XL reported on Monday its holiday sales results and updated guidance for the fourth quarter.

 
Total sales for the holiday selling season decreased to $97.9 million from $98.2 million from the previous year, and comparable sales decreased 1.4%.

David Levin, President and CEO, commented, “The retail apparel environment was challenging over the holiday selling season, but we were pleased with our store results on the east and west coasts. We observed a noticeable migration with our ‘gift-giver’ this season to online shopping. Our Direct business performed well, but was not enough to offset the decline in store sales.”

Levin also proposed that cutting fall television advertising and increasing digital ad spending impacted its top-line performance but delivered a better return. In addition, the company expects its fourth quarter sales to meet the low end of its guidance for the fourth quarter.
 
Levin said, “We are managing our expenses very well, which we expect will allow us to meet the low-end of our sales, EBITDA and earnings guidance for the year. Our inventory levels are in excellent shape and we believe we are well-positioned as we enter the spring selling season.”