Total sales for the second quarter at Destination XL were 124.8 million dollars, down 10.9 percent. Comparable sales for the quarter also decreased by 10.9 percent.
Based on the current sales trends, DXL is guiding to sales of 470 million dollars to 490 million dollars and an adjusted EBITDA margin of approximately 6 percent, a decrease from our previous guidance. Sales guidance for fiscal 2024 reflects a comparable sales decrease of 6 percent to 10 percent.
“Our second quarter results reflect a challenging retail apparel market punctuated by a lack of foot traffic to our stores and lower conversion rates in our direct business,” said Harvey Kanter, the company’s president and CEO commenting on the financial performance.
The company’s net income for the second quarter decreased to 2.4 million dollars or 4 cents per diluted share, while adjusted EBITDA declined to 6.5 million dollars, or 5.2 percent of sales.
During the first six months, DXL opened two new stores, located in Coon Rapids, Minnesota and Thousand Oaks, California, completed a DXL remodel and closed one store. During the second half, the company expects to open six additional DXL stores.
