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Destination XL Group lowers 2013 guidance on holiday sales that fell below expectations

Photo taken from Destination XL website.
Photo taken from Destination XL website.Credit:

Destination XL Group Inc., a Canton-based retail chain that sells clothing to big and tall men, said Friday that because of lower-than-expected sales in December, it now expects earnings per share for fiscal 2013 to be a net loss in the range of $(0.11) to $(0.13) per share compared with previous guidance of a net loss of $(0.05) per share.

In addition, the company said that sales for fiscal 2013 are expected to be about $388 million, compared with the company’s previous guidance of $395 million.

‘‘In line with much of the retail industry, which faced challenges in the fourth quarter, particularly in the holiday selling season, our December sales results fell below our expectations,’’ David Levin, Destination XL’s president and chief executive, said in a statement. ‘‘During the key selling weeks between Black Friday and Christmas, store traffic was down approximately 4 percent from the prior year as a result of weather in some geographies, as well as continued sluggish consumer buying behavior. This decrease in traffic, disproportionately impacted by the fact that the 2013 holiday season was shorter by six days compared with 2012, negatively affected Q4 sales causing us to reduce earnings expectations for the year.’’

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For the fourth quarter and fiscal year 2013, “comparable sales for the company are expected to increase approximately 3.9 percent and 2.9 percent, respectively, from the prior-year period,” the company said in a press release. “The increase in comparable sales for fiscal 2013 was previously expected to be approximately 5 percent.”

The company said it plans to report its fourth quarter and fiscal 2013 financial results on March 14.

The company also announced the resignation of its executive vice president, chief operating, and chief financial officer Dennis Hernreich and the appointment of board member John E. Kyees as interim chief financial officer

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