US specialty retailer Destination XL continues growth momentum in Q3

29 Nov '21

2 min read

Pic: Destination XL Group

Destination XL Group, an American omni-channel specialty retailer of big and tall mens clothing, has recorded sales of $121.5 million, up by 42.6 per cent, in the third quarter (Q3) of FY21 ended on October 31, 2021, compared to the sales of $85.2 million in the same period of previous fiscal. Net income for the quarter accelerated to $13.6 million (Q3 FY20: loss $7.0 million).

“I am very pleased to report that our business continued to grow across all customer channels and we believe we are actively growing our market share. Our primary focus is on customer acquisition, which was up 34 per cent this quarter over fiscal 2019 and then generating repeat visits driving greater lifetime value,” Harvey Kanter, president and chief executive officer at Destination XL, said in a press release.

“We continue to transform DXL’s brand positioning to further target the addressable market, acquire new customers and achieve a greater lifetime value across our entire customer file,” Kanter added.

The surge in the company’s direct business was principally due to its e-commerce site, which had a sales jump of 66.8 per cent over to the Q3 of 2019. While all regions reported sales increase with the strongest improvements in the Southeast, Midwest, and South Central parts of the country, which exceeded the Pacific Northwest, Northeast and Mid-Atlantic by approximately 500 basis points.

Additionally, DXL’s direct sales represented a 29.7 per cent of total retail sales compared to 21.9 per cent of total retail sales during the pre-pandemic period. Also with its digital efforts and marketplace presence, the American retailers continued to attract new customers recording a 34 per cent growth over the 2019.

Gross profit for Q3 FY21 rose to $60.9 million ($31.0 million), while total expenses stood at $45.0 million ($36.9 million). Moreover, operating income climbed to $15.9 million compared to operating loss of $5.9 million in the Q3 of last year.

“We are incredibly enthusiastic about the momentum DXL has already generated this year. Given our year-to-date performance, we are raising our full-year guidance, but we are also equally concerned about the ongoing and meaningful supply chain and labour issues that we are grappling with daily,” Kanter concluded.

Fibre2Fashion News Desk (JL)

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