Destination XL Group (DXLG) Tops Q2 EPS by 4c, Affirms FY Guiance

Destination XL Group (NASDAQ: DXLG) reported Q2 EPS of ($0.01), $0.04 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $114.1 million versus the consensus estimate of $110.25 million.

• Total comparable sales increased +6.7%, on top of +7.0% in the prior-year quarter

Fiscal 2015 Outlook

The Company is affirming its previous earnings guidance for fiscal 2015. The Company expects:

• Total sales in the range of $438.0 to $443.0 million.
• A total comparable sales increase of approximately 5.6%.
• Gross profit margin of approximately 45.9%.
• SG&A costs of approximately $180.5 million.
• Depreciation and amortization expense of approximately $28.5 million.
• Interest expense of approximately $3.8 million.
• EBITDA in the range of $21.0 to $23.0 million.
• Operating margin loss of between (1.7%) and (1.2%).
• A net loss of $(0.20) to $(0.23) per diluted share. On a non-GAAP basis, an adjusted net loss of $(0.12) to $(0.14) per diluted share. This guidance is presented on a non-GAAP basis for comparative purposes to fiscal 2014 earnings, assuming a normal tax benefit of approximately 40%. The Company expects to continue to provide a full valuation allowance against its deferred tax assets in fiscal 2015 and will not recognize any income tax benefit on its operating loss in fiscal 2015.
• To open approximately 30 DXL retail and 8 DXL outlet stores and close approximately 41 Casual Male XL and 3 Rochester Clothing stores.
• Capital expenditures, net of tenant allowances of $6.0-$7.0 million, of approximately $30.0-$32.0 million.
• Borrowings at the end of fiscal 2015 in the range of $72.0 to $76.0 million consisting of $45.3 to $49.3 million under the credit facility, a term loan of approximately $13.8 million, and equipment financing notes of approximately $12.9 million. Free cash flow in the range of $(18.5) to $(22.5) million.

For earnings history and earnings-related data on Destination XL Group (DXLG) click here.

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