DXL INCREASES SALES, PROFITABILITY IN Q2 2015
Big and tall men’s apparel retailer Destination XL Group, Inc. (NASDAQ: DXLG) has released its second-quarter 2015 financial results and, appropriately enough, its numbers are growing.
“Our outstanding second-quarter results continue to demonstrate that our long-term plan is working, as we delivered improvements in both sales and profitability,” said president and CEO David Levin in a statement. “Once again, our DXL retail stores produced a double-digit sales comp increase of +11.9%, on top of +11.3% from the second quarter last year. In fact, sales growth accelerated through the quarter, from the combination of favorable weather, increased store traffic, higher average transaction and greater sales to end-of-rack customers.
“EBITDA for the quarter was $6.8 million – a 116% increase from the second quarter of 2014. Our new DXL stores are exceeding our expectations, and our total customer growth for the first six months of 2015 has already outpaced our total customer count growth for all of fiscal 2014. We are trending to the higher end of our guidance for fiscal 2015, and we remain on track with our fiscal 2016 projections for sales of $470 million and EBITDA of $35 million.
“We also are very excited to announce that after a detailed analysis of our existing Casual Male and DXL store portfolio, we have identified approximately 400 DXL store opportunities nationwide, compared with our previous estimate of 250. Increasing brand awareness, the success of our smaller footprint stores and the introduction of the DXL outlet stores enable us to expand our reach beyond previous estimates. We are generating sufficient free cash flow to fund the planned expanded roll-out, and we anticipate healthy returns on invested capital based on our experience to date. Consequently, we now expect to open 30 to 40 DXL stores per year through fiscal 2020, which we believe will translate into higher revenue and profitability than previously forecast, beginning in 2017.”
By year end 2015 the Canton, Massachusetts-based company estimates that it will operate 168 Destination XL stores, 10 DXL outlets, 126 Casual Male XL stores, 38 CMXL outlets and five Rochester Clothing stores.
