Destination XL Q1 FY20: net sales $57 mn; net loss $42 mn

18 Jun '20

2 min read

Pic: Destination XL

Destination XL Group, US-based omni-channel specialty retailer of big and tall men’s clothing, posted 49.3 per cent sales decrease to $57.2 million in first quarter (Q1) FY20 ended on May 2, 2020, compared to sales of $112.9 million in same period prior year. Company reported a net loss during the quarter of $41.7 million (Q1 FY19: $3.0 million).

“As of June 2, 2020, we now have approximately 201 stores open across the country and we expect all of our stores will reopen by the end of June. With respect to the stores that have opened thus far, some stores are performing better than others, but overall comparable sales initially were down an average of 70-80 per cent to last year, but performance has improved week-to-week,” Harvey Kanter, president and chief executive officer, said in a press release.

We are also encouraged by our DXL.com business where year-to-date demand is trending up 30 per cent over the prior year and up 70 per cent to-date in the second quarter.”

The company reported that the growth of its wholesale business continued to be a key initiative in FY20 led by business with Amazon Essentials, which contributed $2.0 million dollars of sales in Q1 FY20. Destination XL has also launched a new wholesale line of business for the design and sourcing of protective masks, with sales beginning in the Q1 FY20.

“Our global sourcing teams’ expertise has now been extended even further, leveraging our growing wholesale channel to now source and sell masks to Fortune 100 companies with nearly 2.5 million masks sold to date in the second quarter and 250,000 masks for sale on DXL.com," Kanter said.

Fibre2Fashion News Desk (JL)

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