Destination XL Group, Inc. Announces Fourth Quarter and Full Year Sales Results and Provides Preliminary Earnings Estimate for Fourth Quarter

Fourth Quarter Comparable Sales up 1.1%; Full-Year Comparable Sales Up 0.1%

CANTON, Mass., Feb. 18, 2020 (GLOBE NEWSWIRE) -- Destination XL Group, Inc. (NASDAQ: DXLG), the largest omni-channel specialty retailer of big and tall men’s clothing, today reported sales results for the fourth quarter and fiscal year 2019 and provided preliminary earnings for the fourth quarter of fiscal 2019 (unaudited).

• Total sales for the fourth quarter of approximately $131.2 million, an increase of $0.1 million from the prior year fourth quarter; total sales for fiscal 2019 were approximately $474.0 million as compared to total sales of $473.8 million for fiscal 2018.
• Total comparable sales increased approximately 1.1% for the fourth quarter which compares favorably to the 9-week holiday sales period ended January 4, 2020 of 0.4%.  Total comparable sales for the year increased approximately 0.1%.
• Net income for the fourth quarter is expected to range from $0.04 to $0.06 per diluted share as compared to the prior-year fourth quarter’s net loss of $(0.15) per diluted share.
• On a non-GAAP basis, which excludes asset impairments, CEO transition costs and corporate restructuring costs, and includes a normalized tax rate, we expect net income for the fourth quarter to range from $0.04 to $0.06 per diluted share, as compared to the prior-year fourth quarter’s net loss of $(0.01) per diluted share.

Management Comments

“We are pleased to report that the sales momentum we saw in the 9-week holiday sales period further accelerated in January.  Our fourth quarter comparable sales increased approximately 1.1% compared to the 0.4% comparable sales increase we saw for the holiday season.  We are continuing to make progress with sales growth, and we did so in the fourth quarter with a relatively comparable promotional cadence.  We expect our fourth quarter financial results will be a positive reflection of that progress which we will review in detail on March 19^th,” said Harvey S. Kanter, President and Chief Executive Officer.

“For fiscal 2019, we expect to report positive free cash flow compared to our previous guidance for free cash flow to be approximately break-even.  Positive free cash flow, which is reported after all capital expenditures, was used to reduce our year-end debt balance and improve the balance sheet.  In addition, we expect to report a reduction in total inventory and clearance inventory compared to last year-end.  We are confident that our existing credit facility provides us with sufficient access to working capital to execute our strategic plan.  We have a $125 million revolving credit facility and a $15 million FILO term loan, both of which are not set to expire until May, 2023.  We look forward to providing a comprehensive review of our strategic priorities and our fiscal 2019 financial results on our fourth quarter earnings call scheduled for March 19, 2020,” Kanter concluded.