Destination XL sees faster than expected recovery, ups guidance
Canton, Massachusetts-based big and tall menswear retailer Destination XL Group, Inc. announced on Tuesday that its total sales increased 81.3% year over year to $138.6 million in the second quarter, progress that led the company to increase its full-year financial outlook.
The retailer’s sales were $76.4 million in the previous year’s second quarter, when Destination XL’s operations were severely limited by restrictions related to the Covid-19 pandemic.
In order to provide a more informative basis of comparison, the company also included figures from Q2 2019 in its latest quarterly report. The group’s total sales for the second quarter ended July 31, 2021, represented an increase of 12.5% compared to the $123.2 million achieved by the company in the same period two years ago.
Compared to Q2 2019, Destination XL’s comparable sales increased 21.6%. This rise was principally driven by the company’s direct e-commerce business, which grew 52.2%, pushed by a 66.4% increase on the DXL.com platform. E-commerce represented 28.1% of Destination XL’s total sales in the most recent second quarter, compared to 21.1% two years ago.
Quarterly sales in the company’s operated stores rose 13.1% over the last two years, while its wholesale business posted revenues of $0.9 million, compared to $5.0 million in Q2 2020 and $2.7 million in Q2 2019. This decline reflected a reduction in order volume, with the second quarter of fiscal 2020 having also benefited from the sale of $4.1 million in protective masks.
The company’s net income in Q2 2021 was $24.5 million, or $0.36 per diluted share, up from a loss of $10.7 million, or $0.21 per diluted share, in last year’s second quarter. In Q2 2019, Destination XL saw break-even net income.
Destination XL’s sales for the first six months of the year totaled $250.1 million, up 87.1% from $133.7 million in the first half of fiscal 2020 and 5.9% from $236.2 million in the same period in 2019. Net income was $33.1 million, or $0.50 per diluted share, compared to a loss of $52.4 million, or $1.03 per diluted share, a year ago, and a loss of $3.0 million, or $0.06 per diluted share, in 2019.
“We are very pleased to report second quarter results that far surpassed our internal expectations. We believe that we are witnessing a material shift in how consumers are thinking about and engaging with DXL,” said Destination XL Group president and CEO Harvey Kanter in a release. “As a result, we are raising our full year 2021 guidance to reflect the revised outlook we have for the future of DXL, but also caution our optimism given the ongoing surges of the Covid Delta variant and ongoing risk in the supply chain.”
The company now expects its full-year sales to total between $490.0 million and $505.0 million, compared to a previous guidance of approximately $415.0 million to $435.0 million. Net income is now predicted to be in the range of $0.64 to $0.76 per diluted share.
Destination XL currently operates 297 stores under its DXL and CMXL banners, including both retail and outlet locations.
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