Destination XL reports weakened holiday sales
Canton, Massachusetts-based big and tall men's clothing retailer Destination XL Group, Inc. reported weak holiday sales on Monday, as Covid-19 continues to impact retailers.
Over a 9-week holiday sales period ended January 2, 2021, the company reported total sales decreased 23.9% to $78.4 million compared to $103.1 million for the 9-week holiday sales period ended January 4, 2020.
Comparable sales in the company's omni-channel retail business for the same period decreased 24%, primarily due to a decrease in comparable store sales of 38.1% which was partially offset by a 12.7% increase in comparable sales from the company's direct business. This increase was driven by an increase in sales from the DXL.com website of 28.4%, the retailer said.
Sales from the company's wholesale business during the holiday period amounted to $4 million, compared to $3.4 million for the same period year prior.
The company expects total sales for fiscal 2020 of $317 million to $319 million, with comparable sales in its omni-channel retail business for the year down 32.6% to 32.9%.
“As we near the end of fiscal 2020, we look forward to the greater opportunities now ahead in fiscal 2021, having successfully accelerated our digital transformation and substantially increased our operating leverage during the pandemic," said Harvey Kanter, president and CEO.
"We believe that demand for apparel will gradually improve in fiscal 2021 and we look forward to serving our customer wherever and whenever he is ready to shop with us.”
Kanter continued, "our plans for fiscal 2021 include expected sales of approximately $385 million to $402 million, adjusted EBITDA of approximately $11 to $18 million and positive free cash flow. We expect to achieve these results through continued penetration of our direct business, a modest recovery in store traffic during the course of the year, and a slight improvement in our wholesale business. We expect a 10.8% to 14.8% decline in comparable sales from fiscal 2019 levels, with comparable store sales down 23.8% to 27.8% and our direct business up 26.9% to 30.7%.”
The company plans to report its actual fourth-quarter and fiscal 2020 financial results on March 18, 2021.
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