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Feb 01
DXL Q4 2024 Earnings Report
DXL reported its Q4 2024 results with a decline in sales and profitability compared to the prior year due to lower traffic and conversion rates.
Key Takeaways
Destination XL Group, Inc. reported Q4 2024 sales of $119.2 million, down 13.1% from the previous year, with a net loss of $1.3 million or $(0.02) per diluted share. The company reported adjusted net income of $1.0 million or $0.02 per diluted share and adjusted EBITDA of $4.2 million. Gross margin declined to 44.4%, driven by higher occupancy costs due to sales deleverage.
Q4 revenue declined 13.1% to $119.2 million.
Net loss of $1.3 million or $(0.02) per diluted share.
Adjusted EBITDA decreased to $4.2 million from $11.7 million last year.
Comparable sales decreased 8.7% for the quarter.
DXL
DXL
Forward Guidance
DXL expects gradual improvement in comparable sales throughout fiscal 2025, with negative comps in the first half turning positive in the second half.
Positive Outlook
- Upgraded eCommerce platform to enhance customer experience.
- Introduction of new DXL Rewards program to improve customer engagement.
- Store expansion plans include opening 8 new DXL stores in fiscal 2025.
- Disciplined inventory management with reduced clearance rates.
- Strong balance sheet with $48.4 million in cash and investments and no debt.
Challenges Ahead
- Current comparable sales down 12.5% through the first six weeks of fiscal 2025.
- Ongoing volatility in men's retail apparel market.
- Higher occupancy costs due to sales deleverage and lease extensions.
- Increased markdown activity and inbound freight costs impacting margins.
- Limited visibility on macroeconomic factors and tariff impacts.