US retailer Destination XL posts sales of $119.2 mn in Q3 FY23

The company's gross margin rate for Q3 FY23 was 47.5 per cent, including occupancy costs, showing a decrease from the 50 per cent gross margin rate reported in the same quarter of the previous fiscal year. This decline in gross margin rate highlights the challenges faced by the retailer in maintaining profitability amidst changing market conditions.

Selling, general and administrative expenses, as a percentage of sales, were higher in Q3 FY23, standing at 40.2 per cent compared to 37.3 per cent in the third quarter of fiscal 2022, the company said in a media release.

Net income for the third quarter of fiscal 2023 was reported at $4.0 million, or $0.06 per diluted share. This figure shows a significant decrease compared to the net income of $10.5 million, or $0.16 per diluted share, in the third quarter of fiscal 2022.

In terms of Adjusted EBITDA, a non-GAAP measure, the company reported $8.6 million for Q3 FY23, a decline from $16.4 million in the third quarter of fiscal 2022.

"Despite this challenging quarter, we remain disciplined and committed to the strategy and initiatives of which we have spoken previously. Since we repositioned DXL in fiscal 2019, we have grown comparable sales by more than 25 per cent and more than doubled our adjusted EBITDA margin rate.  This trajectory supports our strong belief in the longer-term opportunity for DXL in the men’s big and tall apparel category.  This belief in our future is emboldened by our strong financial position,” said Harvey Kanter, president, and chief executive officer.

Fibre2Fashion News Desk (DP)