Name change causes income slip at Destination XL
CANTON, Mass. — Net income at Destination XL Group, formerly Casual Male, dropped to $4.2 million from $33.5 million for the fourth quarter in the year-ago period.
Fourth-quarter revenue increased to $114.9 million, compared with $111.1 million last year, and same-store sales edged up 0.5%. By brand, DXL stores saw a same-store sales rise of 15% in the quarter, while Casual Male dipped 2.3%.
“We are at a critical juncture in our transformation to Destination XL,” said president and CEO David Levin. “This year we are accelerating the opening of DXL stores and the closing of Casual Male XL locations in order to begin realizing the benefit of this strategy much earlier than we initially anticipated.”
The company expects to have between 105 and 112 DXL stores open by the end of the fiscal year, from its current 48 stores. The company has set a goal of 215 to 230 DXL stores by 2016.
For the full fiscal year, revenue rose to $399.6 million from $395.9 million, and same-store sales increased 1.5%. Profit for the year dropped to $6.1 million from $42.7 million.