Fri, Nov 22, 7:23 PM (227 days ago)
For Q3 2024, Destination XL Group, Inc. (DXLG) reported sales of $107.5 million, down 10% year-over-year, with a significant comparable sales decline of 11.3%. Store sales decreased by 9.9%, while direct sales fell 14.7%. The gross margin rate dropped to 45.1% from 47.5%, primarily due to increased occupancy costs and markdowns. SG&A expenses rose to 44.1% of sales, reflecting higher healthcare and technology costs despite a decrease in marketing expenses. The company incurred a net loss of $1.8 million ($0.03 per share), contrasting with a profit of $4.0 million in the prior year. Cash and investments totaled $43 million, with no debt and $78.1 million in unused credit capacity. Inventory decreased by 10.7%, indicating proactive management amidst economic pressures. Looking ahead, DXLG has paused its brand campaign and reduced planned store openings to ensure fiscal responsibility. The company continues to focus on strategic initiatives, including a new eCommerce platform and collaborations to enhance market presence. The overall outlook remains cautious due to ongoing consumer spending challenges and macroeconomic uncertainties.