Destination XL Group (DXLG) Tops Q3 EPS by 1c

November 18, 2016 7:07 AM EST
Get Alerts DXLG Hot Sheet
Trade DXLG Now!
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

Destination XL Group (NASDAQ: DXLG) reported Q3 EPS of ($0.05), $0.01 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $101.9 million versus the consensus estimate of $103.82 million.

DXL retail stores delivered positive 2.3% comparable sales growth, a 2-year stack of 11.5%.

GUIDANCE:

Destination XL Group sees FY2016 EPS of ($0.05)-$0.00, versus the consensus of ($0.03). Destination XL Group sees FY2016 revenue of $451-457 million, versus the consensus of $460.39 million.

“We delivered another quarter of positive comparable sales growth,” said President and CEO David Levin. “Despite a very difficult retail environment, our DXL stores continue to perform, registering comparable sales growth of 2.3%, driven by increases in both transactions and average spend per guest. We also continue to grow EBITDA, delivering a year-over-year improvement of 57%. Heading into the fourth quarter, our inventories are in excellent shape, and we are well positioned to capitalize on the coming holiday shopping season,” Levin said.

“The DXL transformation remains on track, as we opened 13 new stores in the third quarter. We continue to see very strong cash-on-cash returns from our new DXL stores, and we are very excited to have reached a major milestone with the opening of our 200th DXL store, in Oxnard, California.

“We continually look to maximize the return we achieve on every dollar we spend, and that scrutiny is heightened in a difficult retail environment such as the one we are experiencing. Because of this disciplined approach, we have decided not to spend advertising dollars on television in the fourth quarter. Our marketing campaign in the fourth quarter will consist of radio, digital and social media, and we will continue to evaluate the use of television in the future. The lack of television exposure, coupled with the delayed arrival of cold weather, is leading us to a more cautious outlook for sales and EBITDA. However, we are still maintaining our adjusted earnings guidance of breakeven to $(0.05) per share,” Levin concluded.

For earnings history and earnings-related data on Destination XL Group (DXLG) click here.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Earnings, Guidance, Management Comments, Retail Sales

Related Entities

Earnings

Add Your Comment