Loading...
•
Feb 01, 2025
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.
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.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...