May. 29 at 11:04 AM
$DXLG Destination XL reports Q1 EPS (4c) vs. 6c last year
Reports Q1 revenue
$105.5M vs.
$115.5M last year. Comparable sales for the first quarter of fiscal 2025 decreased 9.4% as compared to the first quarter of fiscal 2024. "We are currently managing our business through an economic downcycle, and our performance does not reflect the opportunity in our total addressable market or the longer-term potential for our brand. We believe the broader macroeconomic challenges within the apparel industry and consumer sentiment are pushing our customer to be more discerning in what he is buying.
Our assortment is well positioned to serve those value-oriented customers who are trading down from national designer brands to our private label brands, which have lower average unit retail prices but higher margins," said Harvey Kanter, CEO. "We've recently implemented several initiatives to ensure the value of our assortment is clear. Today we offer our price match guarantee, fit exchange, and first responder programs, which are helping with DXL's price perception and, together with our loyalty program, are helping to drive enhanced value and affinity for our brand. We are also extending our FiTMAP sizing technology program which allows customers to use leading edge technology to understand their individual sizing.
Our guests can now engage with our brand in a much more personalized manner using this full body scanning technology. Our net promoter score continues to shine and is touching just over 80 in stores and our conversion is up year over year. Although our sales performance was below expectations, we are seeing some improvement in sales velocity, while still maintaining a healthy merchandise margin and controlling costs. The situation with tariffs is very fluid and we continue to monitor trade discussions and changes to policy as they develop.
We are leaning into relationships with our vendors and suppliers around the world and we are working very hard to mitigate the cost of those tariffs. Our discussions with our private label vendors have been productive. On the domestic side, we are also having dialogue with our national brands as we all try to navigate this environment. Our inventory is well positioned ahead of Father's Day and we are looking forward to continued improvement in the second quarter."
