Destination XL, big + tall men’s clothing and shoes retailer reported sales for the first quarter were 115.5 million dollars, down 7.9 percent with a comparable sales decrease of 11.3 percent.
Net income for the quarter was 6 cents per diluted share, and adjusted EBITDA declined to 8.2 million dollars or 7.1 percent of sales.
“We expected fiscal 2024 to be challenging, but our first quarter sales results were disappointing. Our guidance for fiscal 2024 assumed an improvement in first quarter sales; however, the macroeconomic pressures we observed in the second half of fiscal 2023 persisted, continuing to negatively impact store traffic and online conversion,” said Harvey Kanter, the company’s president and CEO in a release.
Based on our current sales trends, the company is guiding to the low-end of its previous sales guidance of 500 million dollars, with a mid-single digit decrease in comparable sales. Destination XL believes that with continued management of inventory and operational expenses, the company can achieve a 7 percent adjusted EBITDA margin for fiscal 2024.
