Destination XL same-store sales improve, strengthens team to drive growth

Destination XL Group, Inc. has said in a statement that total sales for the third quarter of 106.6 million dollars, were down 0.5 million dollars or 0.5 percent, while comparable sales increased 0.2 percent for the quarter. Net loss for the third quarter was 7.2 million dollars or 14 cents per share compared to 2 million dollars or 4 cents per share in the prior year’s third quarter. The company also announced the appointment of Ujjwal Dhoot as Chief Digital Officer.

“For the third quarter, we delivered our first positive sales comp for the year at 0.2 percent. This is a small win for us and a first step in the right direction,” said Harvey Kanter, the company’s President and Chief Executive Officer, adding, “Although overall DXL sales performance is still not to the level that I believe we are capable, we remain cautiously optimistic and expect greater inflection in the coming quarters.”

Highlights of DXL’s Q3 results The decrease of 0.5 million dollars in total sales, the company added, was primarily due to a decrease in sales of 3.2 million dollars from closed stores, other revenue and non-comparable sales partially offset by an increase in wholesale revenue of 2.5 million dollars and a comparable sales increase of 0.2 percent or 0.2 million dollars.

Gross margin rate, inclusive of occupancy costs, was 41.1 percent compared to 44 percent, a decrease of 290 basis points. Adjusted net loss for the quarter was 8 cents per diluted share compared to 2 cents per diluted share for the third quarter of fiscal 2018. Adjusted EBITDA was 1.7 million dollars compared to 6.6 million dollars for the third quarter of fiscal 2018.

Ujjwal Dhoot joins DXL as chief digital officer Reporting to Erica Thompson, Chief Marketing Officer, who joined DXL in October, the company further said, Dhoot’s skills, expertise in digital marketing and strategy, ecommerce P&L management, and thought leadership in omni-channel retail will help DXL drive towards its goal of being the number one destination for big and tall men wherever they choose to shop.

“We are extremely pleased that Ujjwal has joined DXL Big + Tall as our new Chief Digital Officer. Ujjwal’s appointment underscores our ongoing commitment to building out a digitally-driven marketing organization. Our organizational pursuits support the heightened strategic focus on customer engagement through data-driven personalization, loyalty and digital marketing; our #1 priority area for DXL for 2020,” added Kanter.

Prior to joining DXL, Dhoot held senior marketing positions with FSAstore.com, Charming Charlie and PetCareRx.com. At DXL, he will be responsible for all digital initiatives across the entire organization, including building the brand digitally, driving traffic to stores, mobile commerce, ecommerce, and the Company’s overarching digital marketing strategy.

“I am thrilled to join DXL, a specialty retailer known for its in-store experience, expertise in sizing, fit and exclusive assortment. We have the opportunity to enhance the omni-channel offerings and bring the in-store experience to the web, further driving DXL’s dominance in the men’s big and tall segment,” added Dhoot.

Picture:Facebook/DXL Men's Apparel