US-based clothing and accessories retailer Destination XL Group (DXL) has reported total sales of $119.2m in the third quarter (Q3) of fiscal year (FY) 2023.
This is a decrease of 8.1% from $129.7m in Q3 FY22.
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The retailer attributed the decline to the slowdown in-store footfall and dollars per transaction as the economy and inflationary pressures continued to impact consumer spending.
During the quarter ending 28 October 2023, the retailer’s comparable sales for the quarter decreased by 6.7% from the prior year’s quarter.
DXL registered a net income of $4.0m in Q3 FY23, compared with $10.5m in Q3 FY22. Its earnings per diluted share (EPS) for the period were $0.06 against $0.16 in the same quarter a year ago.
The retailer posted adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $8.6m in Q3 FY23, compared to $16.4m in the corresponding period of FY22.
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By GlobalDataDXL president and chief executive officer Harvey Kanter said: “Despite this challenging quarter, we remain disciplined and committed to the strategy and initiatives of which we have spoken previously. Since we repositioned DXL in fiscal 2019, we have grown comparable sales by more than 25% and more than doubled our Adjusted EBITDA margin rate.
“This trajectory supports our strong belief in the longer-term opportunity for DXL in the men’s big & tall apparel category. This belief in our future is emboldened by our strong financial position.”
For the full period of fiscal year 2023, the retailer expects sales to be approximately $520.0m to $530.0m and net income to be approximately $0.39 to $0.46 per diluted share.
DXL also anticipated its adjusted EBITDA margin to be approximately 10.0% to 11.0%.
The retailer opened a new DXL store in Queens, New York, during the quarter and plans to add two more by the end of FY23.
It aims to open 50 net new DXL stores over the next three to five years.
