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, down
9.8% from $119.2 million in the third quarter of fiscal 2023.
Comparable sales for the third quarter of fiscal 2024 decreased
11.3% 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, or 1.0% of sales, as compared to $8.6 million, or
7.3% 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 100% of the site traffic now on our new
platform. The platform addresses friction online and will drive a
richer and simpler consumer experience, as well as drive measurably
greater speed and agility. During the third quarter, we completed
the second phase of this project, which included catalog pages,
product detail pages, and a new site search experience. The last
phase, which will improve the checkout process and other user
experiences is scheduled to be completed in early 2025.
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 $107.5
million, as compared to $119.2 million in the third quarter of
fiscal 2023. The decrease in total sales was primarily attributable
to a decrease in comparable sales for the third quarter of 11.3%,
partially offset by an increase in non-comparable sales.
The comparable sales decrease of 11.3% consisted of comparable
sales from our stores down 9.9% and our direct business down 14.7%.
This third quarter decline was consistent with the trend from the
first half of fiscal 2024, with the decrease in comparable sales
principally driven by a decrease in traffic in our stores and
decreased conversion in our direct business. We continued to see a
shift toward our private-label merchandise, as opposed to our
national brands, as customers continued to be cost-conscious with
their discretionary spending.
Gross Margin
For the third quarter of fiscal 2024, our gross margin rate,
inclusive of occupancy costs, was 45.1% as compared to a gross
margin rate of 47.5% for the third quarter of fiscal
2023.
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
44.1% as compared to 40.2% for the third quarter of fiscal
2023.
On a dollar basis, SG&A expenses decreased by $0.6 million
as compared to the third quarter of fiscal 2023. The decrease was
primarily due to a decrease in marketing of $1.4 million as
compared to the prior year's third quarter, partially offset by
increases in healthcare costs, technology costs and professional
services. On a percentage of sales basis, SG&A expenses
increased due to the decrease in sales for the third quarter of
fiscal 2024 as compared to the third quarter of fiscal 2023.
Marketing costs were 5.7% of sales for the third quarter of
fiscal 2024 as compared to 6.3% of sales for the third quarter of
fiscal 2023. For fiscal 2024, marketing costs are expected to be
approximately 6.8%.
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 24.2% of sales
in the third quarter of fiscal 2024 as compared to 22.5% of sales
in the third quarter of fiscal 2023. Corporate Support Costs, which
include the distribution center and corporate overhead costs,
represented 19.9% of sales in the third quarter of fiscal 2024 as
compared to 17.7% of sales in the third quarter of fiscal 2023.
Interest Income, Net
Net interest income for the third quarter of fiscal 2024 was
$0.6 million, which was flat as compared to the third quarter of
fiscal 2023. For both periods, interest income was earned from
investments in U.S. government-backed investments and money market
accounts. Interest costs for both periods were minimal because we
had no outstanding debt and no borrowings under our credit
facility.
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
9.2% as compared to an effective tax rate of 30.2% for the third
quarter of fiscal 2023. The difference in the effective tax rate
for the third quarter of fiscal 2024, as compared to the third
quarter of fiscal 2023, was due to the net loss reported during the
third quarter of fiscal 2024 and its impact on our estimated annual
effective tax rate for fiscal 2024. For the fiscal year, we expect
an increase in the effective tax rate primarily due to permanent
book-to-tax differences combined with a lower pretax income as
compared to fiscal 2023.
Net Income (Loss)
For the third quarter of fiscal 2024, net loss was $1.8 million,
or $(0.03) per diluted share, as compared to net income for the
third quarter of fiscal 2023 of $4.0 million, or $0.06 per diluted
share.
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP measure, for the third quarter of
fiscal 2024 was $1.0 million, as compared to $8.6 million for the
third quarter of fiscal 2023.
Cash Flow
Cash flow from operations for the first nine months of fiscal
2024 was $12.5 million as compared to $33.1 million for the first
nine months of fiscal 2023.
Free cash flow, before capital expenditures for store
development, a non-GAAP measure, was $2.5 million for the first
nine months of fiscal 2024 as compared to $26.5 million for the
first nine months of fiscal 2023.
Free cash flow, a non-GAAP measure, was $(7.0) million for the
first nine months of fiscal 2024 as compared to $22.7 million for
the first nine months of fiscal 2023. The decrease in free cash
flow was primarily due to a decrease in operating income as well as
increases in capital expenditures of $5.6 million for store
development and other capital projects of $3.4 million.
|
|
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 $43.0
million as compared to $60.4 million as of October 28, 2023, with
no outstanding debt in either period. We did not have any
borrowings under our credit facility during either period and, as
of November 2, 2024, the availability under our credit facility was
$78.1 million, as compared to $87.6 million as of October 28, 2023.
Availability under our credit facility is primarily driven by our
available inventory.
As of November 2, 2024, our inventory decreased approximately
$10.7 million to $89.1 million, as compared to $99.9 million as of
October 28, 2023. We continue to take proactive measures to manage
our inventory and adjust our receipt plan given the ongoing
macroeconomic factors affecting consumer spending. At November 2,
2024, our clearance inventory was 9.2% of our total inventory, as
compared to 9.7% at October 28, 2023. Our inventory position is
very strong and our clearance levels are in line with our benchmark
of 10% even with the 10.7% decrease in total inventory. Our
inventory turnover rate has improved by over 30% from fiscal
2019.
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 $15.0 million of our common stock, including
excise tax, through open market and privately negotiated
transactions. The stock repurchase program will expire on February
1, 2025. During the third quarter of fiscal 2024, we repurchased
3.6 million shares at a total cost, including fees, of $10.2
million under this stock repurchase program.
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 $21.0 million to $24.0 million, net of tenant
incentives, in fiscal 2024. Over the next five years, we
believe we could potentially open approximately 50 net new DXL
stores across the country, which could average 6,000 square feet or
300,000 sq. ft. in total, a 15% increase over our current square
footage. We are currently planning to open 8 stores in fiscal
2025.
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 $31.3 million, or 29.1% of retail segment sales,
as compared to $36.2 million, or 30.4% of retail segment sales in
the third quarter of fiscal 2023.
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 $470.0 million. We have lowered our adjusted EBITDA
guidance to 4.5% from 6.0%, primarily as a result of the
deleveraging of costs on the lower sales base. Sales guidance for
fiscal 2024 reflects a comparable sales decrease of approximately
10%.
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
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