Destination XL disappoints during Q1
Canton, Mass. -- Destination XL reported disappointing financial results for the first quarter. The company’s net income fell 56% from $2.3 million in first quarter 2012 to $1 million, while same store sales grew 0.8%. Total sales also declined 2%, from $95.5 million to $93.6 million. Destination XL cited a colder-than-normal spring and a 60% drop in catalog sales as a contributor to declining quarterly performance.
Destination XL President and CEO David Levin said that one bright spot during the quarter was the strong performance of the company’s DXL retail concept.
“Our DXL stores continue to deliver strong results that are better than we initially expected,” said Levin. “Dollars per transaction at our DXL stores this quarter increased 17.6% to $154 from $131 in the first quarter of last year.”
During fiscal 2013, Destination XL plans to open between 57 and 64 new DXL stores and close between 110 and 119 Casual Male XL and Rochester stores. Capital expenditures related to this activity are expected to run about $45 million while marketing spend will increase $10 million.