Comparable sales of the company for the second quarter of fiscal 2019 were flat over the prior year. The adjusted EBITDA for the second quarter was $7.1 million compared to $8.7 million in the prior-year quarter, said the company in a press release.
"The second quarter got off to a slow start as unfavourable weather impacted sell-through of seasonal product. Despite the second quarter's performance shortfall, we improved comparable sales as the quarter progressed ending the period with a slightly positive comp trend. Our second quarter wholesale sales improved from the first quarter run rate as we made good progress on initiatives to build our Wholesale Business Unit," said Harvey S Kanter, president and chief executive officer of Destination XL Group.
"Our entire organisation is oriented around one strategic theme, the essence of which is the belief that we need to enable consumers to purchase our products and services where they want, how they want, and through whatever channel they want to obtain them. The four strategic initiatives to deliver this include engaging with our customers in a more meaningful and personalised way from a digital standpoint, better defining and developing our working marketing plans, improving our e-commerce and online experience, and executing against our plan to build our wholesale business. What is important to remember is that there is no one thing, no silver bullet, and the transformation is not driven in any one channel or with any unique customer segment. It is a series of moves across marketing, across channels and across customer segments that we need to create the momentum we are looking for and to get us on top. For the Fall season we are conservatively optimistic and believe we are on the right path and our plans should grow our customer base and drive a top-line sales inflection," Kanter concluded.
"For fiscal 2019, we expect to deliver comparable sales growth in our omni-channel retail business and to generate free cash flow. Since Kanter joined the company on April 1, 2019, we have made progress in developing the mission, vision and strategic plan which is now beginning to inform and define our transformation as we look forward and develop the strategy to engage the big and tall men across the omni-channel landscape. We are making capital investments in both our customer relationship capabilities and our data infrastructure and analytics capabilities. We believe that these investments are required as we move forward in this digitally driven retail environment in which we operate today," said Destination XL.
In fiscal 2019, Destination XL plans to open 2 new DXL retail stores, rebrand 12 Casual Male XL retail stores to DXL retail stores, and rebrand 1 Casual Male XL outlet to a DXL outlet store. It also plans to close 5 Casual Male XL retail stores, 1 DXL store and all 5 Rochester Clothing stores. (PC)
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