Destination XL Group Lowers Outlook on Q2 Losses

DestinationXL

Big and tall menswear retailer Destination XL Group, formerly known as Casual Male Retail Group, has lowered its full year guidance, after swinging to a second quarter loss of $1.6 million.

“Our financial results for the second quarter of 2013 exceeded our expectations on the retail side of the business as a result of the positive and significant effect of our marketing campaign,” said president and CEO David Levin.

“The direct business, however, fell short of our expectations due to softer catalog sales and the lower-than-expected effect from the marketing campaign on web sales. As a result, we are eliminating our catalogs and will be replacing them with much smaller brand mailers.

Destination XL Group now expects full year losses per diluted share to be $0.03-0.05, down from its previous guidance of earnings per diluted share to break even. Comparable sales are forecast to increase of 6-7% and total sales to be $395-$400 million, compared to 8.5-10% and $415-$420 million respectively.

It also expects to open 55-58 DXL stores during fiscal 2013, lower than its original plan of 57-64, due to changes in store opening dates.

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