Destination XL Moves to Profit in Q4

Destination XL Group Inc. continued to make progress in its larger Destination XL stores even as company results fell slightly short of Wall Street’s expectations. In the fourth quarter ended Jan. 31, the Canton, Mass-based big & tall retailer reported net income of $1.6 million, or 3 cents a diluted share, versus a net loss of $55.1 million, or $1.14, in the 2013 period. Excluding special items, such as a $51.3 million pretax charge to establish a full valuation allowance in 2013, adjusted EPS was 2 cents a share, 1 cent below the 3-cent profit consensus estimate of analysts, versus a loss of 3 cents in the prior-year quarter. Gross margin expanded to 47.9 percent of sales from 44.8 percent. Revenues in the quarter totaled $119.6 million, below the consensus estimate of $120.9 million but 11 percent above the $107.7 million logged in the 2013 period. Comparable sales were up 8.9 percent, following a 4.2 percent increase in the 2013 quarter, with the expanded Destination XL stores to which the company is transitioning generated a 16.4 percent comp increase. “Our Destination XL customer base continues to grow both overall and on a per-store basis,” said David Levin, president and chief executive officer. “In addition

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