Destination XL Group shares fell sharply in Friday premarket trading after the company reported a sharp decline in sales and earnings during what it said was a challenging third quarter.
The specialty retailer of big and tall men's clothing and shoes said traffic through its stores slowed during the quarter, with customers spending less due to the economy and inflationary pressures.
For the three months to October 28, 2023, total sales fell 8.1% to $119.2.
The DXL website, which was down 1.5%, performed better as a result of improvements in email marketing and growth from our mobile app, the company noted.
Net income per diluted share sank 62.5% to $0.06.
"Despite this challenging quarter, we remain disciplined and committed to the strategy and initiatives of which we have spoken previously,” president and CEO Harvey Kanter commented in a statement.
“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.”
The company has revised its full-year guidance and now expects sales to be roughly $520 million to $530, with net income of $0.39 to $0.46 per diluted share.
Ahead of the opening bell, the company’s shares were down 14% at $4.02.
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