Destination XL narrows 2023 adjusted EPS 45c-49c from 45c-52c, consensus 45c

Sees revenue $520M-$525M, consensus $523.7M. Total sales were $102.4 million compared to $111.7 million for the 9-week holiday sales period ended December 31, 2022. Comparable sales for the same 9-week holiday period decreased 8.7%, with comparable sales decreases of 7.6% from stores and 10.9% from the direct business. “Our sales results for the 9-week holiday period were disappointing, but not unexpected. We started the quarter with a high, single-digit negative comp and that is exactly where we ended the holiday period. Lower traffic to both the stores and our website was the primary reason for the decline in sales. Despite the challenges with traffic, we resisted the temptation to stimulate sales by becoming hyper-promotional, which we believe also resulted in softer conversion online. Conversely, staying the course as we continue to rebuild the DXL brand avoided further erosion in gross margin with unnecessary markdowns. This strategy was made possible because of our clean inventory position and our disciplined approach to inventory management,” said Harvey Kanter, President and Chief Executive Officer.