US retailer Destination XL's total sales at $115.5 mn in Q1 FY24

31 May '24

2 min read

US retailer Destination XL's total sales at $115.5 mn in Q1 FY24

Pic: Destination XL

Insights

Destination XL Group reported Q1 FY24 sales of $115.5 million, down from $125.4 million in Q1 FY23.
Comparable sales decreased by 11.3 per cent, with store sales down 11.4 per cent and direct business down 11 per cent.
Gross margin was 48.2 per cent.
Net income dropped to $3.8 million, or $0.06 per share, from $7 million, or $0.11 per share, in Q1 FY23.

Destination XL Group, Inc, a leading American retailer of big and tall men's apparel, has total sales of $115.5 million for the first quarter of fiscal 2024 (Q1 FY24), down from $125.4 million in the first quarter of fiscal 2023. Comparable sales for the quarter decreased by 11.3 per cent, with store sales down by 11.4 per cent and the direct business down by 11 per cent. The decrease in comparable store sales was slightly offset by an increase in non-comparable sales of $1.8 million and a $3 million shift in calendar weeks due to the 53rd week in fiscal 2023.

The gross margin rate for Q4 FY24, inclusive of occupancy costs, was 48.2 per cent, slightly lower than the 48.6 per cent gross margin rate reported in the same period last year. Selling, general, and administrative expenses as a percentage of sales increased to 41.1 per cent, up from 38.5 per cent in the first quarter of fiscal 2023, the company said in a press release.

Net income for the first quarter of fiscal 2024 was $3.8 million, or $0.06 per diluted share, compared to net income of $7 million, or $0.11 per diluted share, in the first quarter of fiscal 2023. Adjusted EBITDA, a non-GAAP measure, was $8.2 million for the first quarter, down from $12.6 million in the same period last year.

“We expected fiscal 2024 to be challenging, but our first quarter sales results were disappointing. Our guidance for fiscal 2024 assumed an improvement in first quarter sales; however, the macroeconomic pressures we observed in the second half of fiscal 2023 persisted, continuing to negatively impact store traffic and online conversion. Despite the difficult environment, our regimented operating process, structure and discipline helped us to deliver gross margins, inventory levels and operating expenses that were better than expected,” said Harvey Kanter, president and chief executive officer.

Fibre2Fashion News Desk (DP)

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