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Destination XL Group swings to loss in Q2, revises guidance

Canton, Mass. -- Big and tall men’s apparel retailer Destination XL Group recorded a $1.6 million loss in the second quarter, compared with a profit of  $1.2 million in the year-ago period.  Sales dipped 3% to $97.6 million from $100.5 million, and same-store sales rose 6.9%.

Aggressive advertising centered around a national ad campaign to ramp up sales cut into second quarter results, which were forecast as break-even. To compensate, the retailer said it will eliminate fall catalogs and reduce the number of store openings from a planned 57-64 to between 55 and 58.

For the year, Destination XL now foresees a loss instead of the previously predicted break-even results.