Destination XL posts 24% decline in sales

By

Robin Driver

Published
Mar 20, 2021

Big and tall menswear retailer Destination XL Group, Inc. reported Q4 sales of $100.1 million on Thursday, down 23.7% from $131.2 million in the prior-year period, as Covid-19 continued to negatively affect the company’s brick-and-mortar revenues.

 
The retailer’s comparable sales for the fourth quarter ended January 30, 2021, decreased 23.4%. This was primarily due to a 37.3% decline at the company’s physical stores, partially offset by a 12.9% increase in its direct business, driven by a 28.7% rise in sales on the DXL.com e-commerce site.
 
Net loss for the quarter came to $5.1 million, or $0.10 per diluted share, compared to net income of $2.4 million, or $0.05 per diluted share, in the same period in the previous year.

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For the full fiscal year 2020, Destination XL reported total sales of $318.9 million, down 32.7% from $474.0 million in 2019, with comparable sales dropping 32.6%. In-store comparable sales fell 47.1%, while direct sales rose 14.9%, largely thanks to a 38.6% increase in sales on the retailer’s e-commerce platforms.
 
Annual net loss at the company totaled $64.5 million, or $1.26 per diluted share, compared to a loss of $7.8 million, or $0.16 per diluted share, in the previous year.
 
“Fiscal 2020 presented a challenge to our business unlike any we’ve seen before,” said Destination XL president and CEO Harvey S. Kanter in a release.
 
“For the past 12 months, our teams have responded by repositioning our company to withstand the impact of Covid-19 to our stores, our distribution center and our corporate office,” he explained. “We have had a relentless focus on preserving liquidity. We pivoted our assortment, negotiated relief in occupancy costs, and restructured our operating expenses to achieve greater operating leverage as we head into fiscal 2021.”
 
As the company moves into 2021, its key business initiatives include driving digital growth through the enhancement of the online customer experience, as well as updated marketing and merchandising initiatives. The retailer is also planning to rightsize its physical store footprint, highlighting that it currently has 131 stores with either a natural lease expiration or a kick-out option within the next two years.
 
The company currently operates a total of 311 stores, both retail and outlet, under the DXL and CMXL banners.  
 
In 2021, Destination XL, which predicts that apparel demand will improve gradually over the course of the year, expects to report annual sales of between $385.0 million and $402.0 million.