Destination XL Group, a Canton-based retailer that sells clothing to big and tall men, said Friday that fourth-quarter sales dropped to $108.5 million compared with $114.9 million for the same period a year ago.
In a press release, the company cited a sluggish retail environment and a shorter-than-usual holiday shopping season as among the reasons for the decline.
On occasion, the haberdasher has sometimes described itself as “a one-stop shop catering to the fashion needs and lifestyles of bigger guys.”
Previously known as Casual Male Retail Group Inc., the company is in the process of closing Casual Male XL stores and opening stores under the Destination XL nameplate. The first Destination XL store opened in mid 2010, and the chain operated 99 Destination XL stores as of Feb. 1. A typical Destination XL store occupies about 8,000 square feet versus 3,400 square feet for Casual Male XL, the company has said previously. During the fourth quarter, the company opened 25 DXL stores and closed 40 Casual Male XL stores.
Destination XL, which now sometimes refers to itself as DXL, said its net loss for the fourth quarter of fiscal 2013 was $55.1 million, or $1.14 per diluted share, compared with net income of $4.2 million, or $0.09 per diluted share, for the fourth quarter of fiscal 2012. The net loss for the fourth quarter of fiscal 2013 included a non-cash charge of $51.3 million.
In a statement, Destination XL president and chief executive David Levin said: ‘‘As previously announced, DXL’s fourth-quarter fiscal 2013 results were in line with much of the retail industry, which faced challenges due to a sluggish retail environment, a shorter holiday selling season, and adverse weather conditions in some geographies. However, the fall national marketing campaign was a success, nearly doubling DXL brand awareness to 25 percent and contributing to the 13.6 percent increase in same-store sales for the DXL stores open for more than one year.”
Initially, the company planned to close Casual Male stores at a faster pace, but productivity at those stores has not declined as much as anticipated, Levin said. As a result, the company has decided not to close Casual Male XL stores in advance of lease expirations, thereby avoiding early termination fees.
“Our revised plan is to complete the transformation by the end of 2017,” Levin said.
In fiscal 2014, the plan now is to open about 40 DXL stores and to close about the same number of Casual Male XL stores, the company said.
For fiscal 2013, total sales were $388 million compared with $399.6 million for fiscal 2012, the company said.
Net loss for fiscal 2013 was $59.8 million, or $1.23 per diluted share, compared with $6.1 million, or $0.13 per diluted share, for fiscal 2012, the company said.