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Aug 01, 2020
DXL Q2 2020 Earnings Report
DXL Group's financial performance declined due to the COVID-19 pandemic, with sales impacted by store closures and reduced hours, though online sales showed significant growth.
Key Takeaways
Destination XL Group reported a decrease in total sales by 38.0% to $76.4 million compared to the prior-year quarter. The net loss for the quarter was $(10.7) million, and adjusted EBITDA was $(4.3) million. Despite these challenges, the company saw a 69% increase in online sales and implemented cost-saving measures to manage liquidity.
Total sales decreased by 38.0% to $76.4 million compared to the previous year.
DXL.com business grew by 69%, increasing direct sales penetration to 46.1% of total retail sales.
Net loss for the quarter was $(10.7) million, compared to a net income of $0.0 million in the prior year.
The company implemented cost-saving measures, including associate furloughs and rent concessions, to manage liquidity.
Forward Guidance
The company expects to see a similar trend of online shopping through the remainder of fiscal 2020 and expects that its fall inventory buys will be below fiscal 2019 levels.
Positive Outlook
- Focus on liquidity management
- Implemented cost-saving measures
- Reduced capital spending
- Negotiated rent concessions
- Online sales growth
Challenges Ahead
- COVID-19 pandemic impact
- Store closures and reduced hours
- Decline in total sales
- Net loss reported
- Uncertainty regarding economic shutdowns
Historical Earnings Impact
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Avg. Return Before/After Earnings
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