Destination XL Q2 loss widens; plans 40 new DXL stores

Canton, Mass. – Charges related to the decision by Destination XL Group Inc. to exit the Sears Canada Direct business resulted in the retailer’s net loss growing to $4 million in the second quarter of fiscal 2014, from $1.6 million a year earlier.

Total sales fared better, driven by increased traffic and higher conversion rates, increasing 6% to $103.7 million, compared with $98 million in the second quarter of fiscal 2013.Same-store sales rose 7%.

For the full fiscal year, the retailer anticipates opening 40 additional 5,000-sq.-ft. to 6,000-sq.-ft. DXL stores in select smaller markets and in markets where geographical considerations warrant an additional presence, for a total of 270-300 new DXL stores. Destination XL will also close approximately 40 Casual Male XL and Rochester Clothing stores. The company also expects a continuing net loss, total sales of $413 million to $418 million, and growth in same-store sales.
 

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