Destination XL Q2 FY20 sales slip to $76 mn

21 Oct '20

2 min read

Pic: Destination XL Group

Destination XL Group, US-based omni-channel specialty retailer of big and tall men’s clothing, reported 38 per cent sales decline to $76.4 million in its second quarter (Q2) FY20 ended on August 1, 2020 compared to sales of $123.2 million in same period last year. Net loss for the quarter was $10.7 million compared to net income of $0.03 million in Q2 FY19.

“Our second quarter performance was better than we anticipated, driven by our website’s 69 per cent growth and opening stores sooner than initially expected. Although this performance permits us to be cautiously optimistic, we remain exposed to the ongoing challenges brought on by the Covid-19 pandemic. Our stores began to reopen in late April and, by the end of June, all of our retail locations were open,” Harvey Kanter, president and chief executive officer at Destination XL, said in a press release.

Gross profit during Q2 FY20 was $21.4 million (Q2 FY19: $54.5 million). Group’s operating loss for the quarter was $9.6 million compared to operating profit of $0.8 million in Q2 FY19.

“During the quarter, we saw gradual improvements in store sales despite curtailed store operating hours. The strong growth in our direct business is a direct outcome of the digital strategies we have implemented and consumers’ shift in shopping preferences further grow in response to Covid-19. Given this increased demand, we have been fortunate that our digital strategies were well-defined, and the distribution centre has been able to operate without any disruption,” Kanter said.

“We also saw positive growth in our wholesale business during the second quarter and were quick to mobilise the sourcing and manufacture of protective masks,” Kanter said.

Fibre2Fashion News Desk (JL)

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