Destination XL raises full year revenue forecast

Total sales at Destination XL for the third quarter of fiscal 2022 were 129.7 million dollars compared to 121.5 million dollars in the third quarter of fiscal 2021.

Comparable sales for the third quarter were up 8.7 percent with comparable sales from the company-owned stores up 10.1 percent and from direct business up 5.5 percent.

Based on sales results during the third quarter, the company is raising its sales guidance for fiscal 2022 to a sales range of 535 million dollars to 545 million dollars from a previous range of 520 million dollars to 540 million dollars and increasing guidance for Adjusted EBITDA margin to 12.5 percent to 13.5 percent for fiscal 2022 from previous expectations of greater than 10 percent.

“While we believe DXL is well-positioned, we are cognizant of the ongoing inflationary pressures and other macroeconomic factors. Given our year-to-date performance and the outperformance of sales in the third quarter, we have raised our sales guidance for fiscal 2022 to a range of 535 to 545 million dollars, from our previous guidance of 520 to 540 million dollars. We have also raised our adjusted EBITDA margin this year and expect a range of 12.5 percent to 13.5 percent,” Kanter concluded.,” said Harvey Kanter, the company’s president and CEO.

For the third quarter gross margin rate, inclusive of occupancy costs, was 50 percent compared to a gross margin rate of 50.2 percent for the third quarter of fiscal 2021.

Net income for the quarter was 10.5 million dollars or 16 cents per diluted share compared to net income of 13.7 million dollars or 20 cents per diluted share. Adjusted EBITDA was 16.4 million dollars compared to 19 million dollars for the third quarter of fiscal 2021.