Destination XL Group, Inc (DXLG) saw its loss narrow to $4.45 million, or $0.09 a share for the quarter ended Oct. 29, 2016. In the previous year period, the company reported a loss of $5.47 million, or $0.11 a share. On an adjusted basis, net loss for the quarter was $2.65 million, when compared with $3.24 million in the last year period.
Revenue during the quarter went up marginally by 2.25 percent to $101.87 million from $99.62 million in the previous year period. Gross margin for the quarter contracted 63 basis points over the previous year period to 44.41 percent. Operating margin for the quarter stood at negative 3.57 percent as compared to a negative 4.64 percent for the previous year period.
Operating loss for the quarter was $3.64 million, compared with an operating loss of $4.63 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.90 million compared with $2.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 132 basis points in the quarter to 3.83 percent from 2.51 percent in the last year period.
“We delivered another quarter of positive comparable sales growth,” said president and chief executive officer 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.
Casual Male Retail Group expects revenue to be in the range of $451 million to $457 million for financial year 2016. For fiscal year 2016, Casual Male Retail Group projects net loss to be $4.40 million. For the fiscal year 2016, Casual Male Retail Group expects adjusted net loss to be $2.60 million. For fiscal year 2016, the company expects diluted loss per share to be $0.09. For fiscal year 2016, the company projects diluted loss per share to be $0.05 on adjusted basis.
Working capital increases sharply
Destination XL Group, Inc has recorded an increase in the working capital over the last year. It stood at $51.28 million as at Oct. 29, 2016, up 89.55 percent or $24.22 million from $27.05 million on Oct. 31, 2015. Current ratio was at 1.51 as on Oct. 29, 2016, up from 1.21 on Oct. 31, 2015.
Days sales outstanding went down to 2 days for the quarter compared with 5 days for the same period last year.
Days inventory outstanding has decreased to 103 days for the quarter compared with 213 days for the previous year period.
Debt remains almost stable
Destination XL Group, Inc has recorded a decline in total debt over the last one year. It stood at $83.27 million as on Oct. 29, 2016, down 0.69 percent or $0.58 million from $83.85 million on Oct. 31, 2015. Total debt was 29.36 percent of total assets as on Oct. 29, 2016, compared with 29.10 percent on Oct. 31, 2015. Debt to equity ratio was at 0.97 as on Oct. 29, 2016, up from 0.95 as on Oct. 31, 2015.
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