American retailer Destination XL's sales at $521.8 mn in FY23

22 Mar '24

3 min read

Pic: Destination XL

Insights

Destination XL Group reported a decrease in FY23 sales to $521.8 million from $545.8 million in FY22, with a 4.6 per cent drop in comparable sales.
Net income decreased to $27.9 million from $89.1 million.
Adjusted EBITDA also declined to $55.9 million.
In Q4 FY23, the company's sales were down 4.7 per cent, with net income at $5.2 million.

Destination XL Group, a leading US-based integrated commerce specialty retailer of big and tall men’s clothing and shoes, has reported total sales of $521.8 million in fiscal 2023 (FY23), marking a decline from $545.8 million recorded during the 52 weeks of fiscal 2022. This downturn reflects a 4.6 per cent drop in comparable sales compared to the previous year.

Gross margin for fiscal 2023 stood at 48.4 per cent, slightly lower than the 49.9 per cent seen in fiscal 2022. Net income experienced a significant decrease, falling to $27.9 million, or $0.43 per diluted share, from a more robust $89.1 million, or $1.33 per diluted share, in the preceding year.

The company also provided figures adjusted for certain non-GAAP measures, with adjusted net income per diluted share settling at $0.50 for fiscal 2023, down from $0.63 in fiscal 2022. Adjusted EBITDA saw a reduction to $55.9 million from $73.8 million year-on-year, Destination XL said in a press release.

Inventory levels as of February 3, 2024, also reflected a contraction, with a 12.9 per cent decrease to $81.0 million compared to $93.0 million at the end of fiscal 2022.

In the fourth quarter of fiscal 2023 (Q4 FY23), Destination XL’s total sales amounted to $137.1 million, a 4.7 per cent decline from $143.9 million during the fourth quarter of the previous fiscal. Comparable sales for the quarter plummeted by 10.1 per cent.

The gross margin for Q4 FY23 was recorded at 47 per cent, slightly down from 47.7 per cent in the corresponding quarter of fiscal 2022. Net income for the quarter came in at $5.2 million, or $0.08 per diluted share, a drop from $8.3 million, or $0.13 per diluted share, in the fourth quarter of fiscal 2022. Adjusted measures saw the fourth-quarter net income per diluted share at $0.10, compared to $0.12 in the prior year, and adjusted EBITDA was $11.7 million, down from $14.2 million.

"We are pleased to have delivered sales and adjusted EBITDA results for fiscal 2023 that were the second and third highest, respectively, in the history of our company, reflecting an adjusted EBITDA margin that has more than doubled and a net sales increase of 10 per cent since 2019. After two years of double-digit comp sales increases, a challenging apparel retail market in 2023 negatively impacted customer traffic to both our stores and website, contributing to our full-year comp sales decrease of 4.6 per cent," said Harvey Kanter, president and chief executive officer.

Fibre2Fashion News Desk (DP)

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