Selling, general, and administrative expenses in FY22 were 36.4 per cent of sales, up from 34.2 per cent in fiscal 2021, with an increase of $25.8 million. Net income for FY22 was $89.1 million, compared to $56.7 million in the previous year, while adjusted EBITDA was $73.8 million, compared to $76.9 million for the previous year, the company said in a press release.

For the fourth quarter (Q4) of FY22, total sales were $143.9 million, up from $133.5 million for the same period last year. Comparable sales for the quarter increased 10.8 per cent, with a 13.2 per cent increase in stores and a 6.2 per cent increase in the direct business. All regions of the country performed well, with the southeast and south central stores being the strongest performers. Gross margin for the quarter, inclusive of occupancy costs, was 47.7 per cent, compared to 49.8 per cent for Q4 FY21.

Net income for Q4 FY22 was $8.3 million, or $0.13 per diluted share, as compared to net income for Q4 FY21 of $9.9 million, or $0.14 per diluted share. Adjusted EBITDA was $14.2 million as compared to $14.3 million for the fourth quarter of fiscal 2021.

Looking ahead, Destination XL Group has provided guidance for fiscal 2023, based on a 53-week year, with sales expected to be between $550 million and $570 million, net income projected to be between $41 million and $47.0 million, and an adjusted EBITDA margin of 12.5-13.5 per cent.

“We are pleased to report our second year of record-breaking sales, with eight consecutive quarters of positive comparable sales and two consecutive years of double-digit adjusted EBITDA margins. We exceeded our sales and margin plan this year, in both our stores and direct business, with an increase of 10.9 per cent in comparable sales which we believe was driven by the brand’s strategic transformational repositioning,” said Harvey Kanter, president, and chief executive officer.

Fibre2Fashion News Desk (DP)