For the fourth quarter of fiscal 2022, total sales were 143.9 million dollars compared to 133.5 million dollars for the fourth quarter of fiscal 2021. Comparable sales for the quarter increased 10.8 percent, driven by a 13.2 percent comparable sales increase from stores and a 6.2 percent increase in the direct business.
For fiscal 2022, total sales increased 8.1 percent to 545.8 million dollars, while comparable sales increased 10.9 percent, with stores up 11.3 percent and the direct business up 9.9 percent.
“We exceeded our sales and margin plan this year, in both our stores and direct business, with an increase of 10.9 percent in comparable sales which we believe was driven by the brand’s strategic transformational repositioning,” said Harvey Kanter, the company’s president and chief executive officer.
“We are planning for sales in fiscal 2023 of 550 million dollars to 570 million dollars and an adjusted EBITDA margin of 12.5 percent to 13.5 percent,” Kanter added.
DXL's fourth-quarter and fiscal 2022 results
The company said, sales for the quarter started slowly with comparable sales for November up 2.7 percent, but accelerated 10.8 percent in December and then up 23.7 percent in January. The incremental increase in comparable sales in January was largely driven by store traffic. All regions of the country performed well in the fourth quarter with the southeast and south central stores our strongest performers. The company added that the growth in the direct business of 6.2 percent was driven primarily by web and app.
Similar to the fourth quarter, all regions of the country performed well in fiscal 2022 with southeast, south central and northeast stores our strongest performers, and direct growth driven primarily by web and app.
Net income for the fourth quarter was 8.3 million dollars or 13 cents per diluted share compared to 9.9 million dollars or 14 cents per diluted share. Net income for fiscal 2022 was 89.1 million dollars or 1.33 dollars per diluted share compared to 56.7 million dollars or 83 cents per diluted share.
Adjusted EBITDA for the fourth quarter was 14.2 million dollars compared to 14.3 million dollars for the fourth quarter of fiscal 2021. For fiscal 2022, adjusted EBITDA was 73.8 million dollars compared to 76.9 million dollars for fiscal 2021.
Over the next three to five years, based on our preliminary store development plan, the company could potentially open up to 50 net new stores. For fiscal 2023, the company plans to convert 10 of the existing casual male XL stores to DXL stores, remodel five existing DXL stores, close five stores and open three new DXL stores.