Latest news with #DestinationXL
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
US retailer DXL's gross margin drops to 45.1% amid lower sales in Q1
For the first quarter (Q1) of fiscal 2025 (FY25), Destination XL (DXL) Group, the leading integrated-commerce specialty retailer of Big + Tall men's clothing and shoes, has recorded gross margin rate, inclusive of occupancy costs, of 45.1 per cent as compared to a gross margin rate of 48.2 per cent for the first quarter of fiscal 2024. The company's gross margin rate decreased by 310 basis points, which was driven by an increase of 280 basis points in occupancy costs, as a percentage of sales, due to the deleveraging from lower sales and increased rents from new stores and lease extensions. Merchandise margin for the first quarter decreased by 30 basis points, as compared to the first quarter of fiscal 2024, primarily due to an increase in markdown activity and promotional offers associated with new marketing initiatives, including the new loyalty programme, as well as an increase in freight costs associated with the acceleration of inventory receipts. These increases were partially offset by an increase in merchandise margins as a result of a shift in product mix. Destination XL (DXL) reported a Q1 FY25 gross margin of 45.1 per cent, down from 48.2 per cent in the prior year, due to higher occupancy costs and increased markdowns. Total sales declined to $105.5 million from $115.5 million, with comparable sales falling 9.4 per cent. Merchandise margin also dipped slightly amid promotional activity and rising freight costs. 'We are currently managing our business through an economic downcycle, and our performance does not reflect the opportunity in our total addressable market or the longer-term potential for our brand. We believe the broader macroeconomic challenges within the apparel industry and consumer sentiment are pushing our customer to be more discerning in what he is buying. Our assortment is well positioned to serve those value-oriented customers who are trading down from national designer brands to our private label brands, which have lower average unit retail prices but higher margins,' said Harvey Kanter, president and chief executive officer . Total sales for the first quarter of fiscal 2025 were $105.5 million, as compared to $115.5 million in the first quarter of fiscal 2024. The decrease in total sales was primarily attributable to a decrease in comparable sales for the first quarter of 9.4 per cent, partially offset by an increase in non-comparable sales, the company said in a press release. 'We've recently implemented several initiatives to ensure the value of our assortment is clear. Today we offer our price match guarantee, fit exchange, and first responder programmes, which are helping with DXL's price perception and, together with our loyalty program, are helping to drive enhanced value and affinity for our brand. We are also extending our FiTMAP sizing technology programme which allows customers to use leading edge technology to understand their individual sizing. Our guests can now engage with our brand in a much more personalised manner using this full body scanning technology. Our net promoter score continues to shine and is touching just over 80 in stores and our conversion is up year over year. Although our sales performance was below expectations, we are seeing some improvement in sales velocity, while still maintaining a healthy merchandise margin and controlling costs,' explained Kanter. Sales trends improved month over month, with comparable sales down 13.9 per cent in February, down 8.2 per cent in March, and down 7.2 per cent in April. Overall, the first quarter decline was consistent with the sales trend in fiscal 2024, as customers are continuing to pull back on discretionary spending. The company continues to see customers shift toward private-label brand merchandise and value-driven brands. Fibre2Fashion News Desk (RR)
Yahoo
7 days ago
- Business
- Yahoo
The Great Unknown
What's the way forward? It's the billion-dollar question right now. As vendors and retailers gather at FFANY in New York this week for the start of the spring '26 buying season, President Donald Trump's trade policy and his punishing tariffs are top of mind. More from WWD Fashion Insiders Meet With Susie Wiles at the White House Destination XL Slips Into Red as Male Customers Shift to Lower-priced Apparel Tariff Impact Evident in Caleres' Q1 as Sales, Profits Slide It's not known what might happen to duty rates when the temporary 90-day freeze on global tariff hikes ends this summer. (Right now, the pause that ends for most countries is set to conclude on July 9; for China, the date is Aug. 14.) What is clear is that some footwear prices are going up as consumer confidence remains on shaky ground. At the same time, the footwear landscape is undergoing rapid consolidation — Dick's Sporting Goods is gearing up to buy Foot Locker, and Skechers is set to go private in the biggest shoe buyout in the industry's history. In the department store sector, the future of Saks Global, which acquired Neiman Marcus in December, is also weighing on the industry, with the cash-strapped company expected to drop up to 600 vendors. 'We're basically in triage mode as we try to figure out what costs will be for our brands and then what retailers can absorb and what consumers can absorb,' said Matt Priest, president and chief executive officer of the Footwear Distributors and Retailers of America (FDRA). He expects an 'elevated pricing landscape' for the foreseeable future due to the uncertainties connected with tariffs, which will make it 'hard for any brand or retailer coming into the June market to fully understand the depth and breadth of what actions lie ahead because it's been so unpredictable to this point.' Retailers big and small are shifting strategies in real time as tariff realities can change from day to day. Walmart CEO Doug McMillon told Wall Street during the retailer's first quarter conference call last month that as the tariff numbers have changed, his merchant team has pivoted and recalculated quantities. 'Where it can be more challenging is making decisions related to things like Halloween and Christmas further out. And how do you make a quantity call? And what tariff number do you use?' McMillon's only answer was that the mass discounter has a sales plan and it will 'operate against that sales plan,' meaning that some quantities will be adjusted based on certain tariff assumptions. A number of independents said they are in wait-and-see mode as Trump's trade policies continue to unfold — and they're focusing on tried-and-true strategies to give them an edge. 'Product is king, and we are always looking for the best shoes at the best prices,' said Lester Wasserman, owner of Tip Top Shoes, which is celebrating its 85th anniversary this year, as well as West NYC. 'We have received plenty of emails from a variety of different vendors, with most of them saying prices will increase roughly $5 to $10 at retail, which in my opinion isn't catastrophic. The tariff situation is still in its infancy and I'm not quite sure anyone knows how it will play out.' Peter Lawson, VP of Shoe Inn — which has been family-run for more than four decades — said the retailer is focusing on fill-ins for fall, as well as timeless, elevated essentials for spring. Price increases will be strategic, he said. 'We're looking closely at perceived value and margin impact. In some cases, we're consolidating buys or working more closely with vendor partners on exclusives to protect pricing,' Lawson said. He noted that the boutique chain also continues to diversify its sourcing strategy. 'While China remains important for some categories, we're seeing great opportunities in Italy, Spain, and Portugal, especially for products that emphasize craftsmanship and quality,' he said. Greg Wagner, president of family-owned Wagner Shoes in Pittsburgh, said the retailer's major objective is to budget seasonal product more accurately. 'Historically we've been guilty of overbuying and carrying too much over. That hurts our turn, gross margin return on investment and cash flow. In the northeast, the boot season is so short that it's very difficult to sell through. We try to leave room for fill-ins, and this fall we should have open to buy,' said Wagner, a fifth-generation family member in the business, which was founded in 1854. With earnings season in full swing, one big trend among brands across the industry — and in the broader consumer sector — has been to withdraw their full-year guidance as tariff policies and consumer behavior remain difficult to predict. Crocs Inc. CEO Andrew Rees told analysts that the 'daily uncertainty' on the level of tariffs makes it hard to plan and predict both short- and long-term impacts. He said expectations are that incremental costs from tariffs would see the industry to go up in terms of price, and that if prices go up, 'we would expect volumes to go down and would therefore plan accordingly.' That's not necessarily a bad thing, according to the CEO. A higher price would mean a higher margin, and maybe slightly lower volume, which 'is a much stronger place to be,' he said. (Crocs beat Q1 forecasts.) Steve Madden Ltd. was already moving production out of China even before the skyrocketing reciprocal tariffs were announced on April 2 (and later paused.) CEO Edward Rosenfeld said last month during the company's first quarter conference call that whatever was early enough in the production process that could be shifted has been moved. And while Madden is planning strategic price increases on select goods this fall, Rosenfeld said the company is also working with factory partners and suppliers to negotiate price concessions to help with mitigation strategies. And he told analysts that some wholesale customers are planning more conservatively for fall, mostly due to uncertainty connected with consumer demand. Like Steve Madden, Wolverine Worldwide is not waiting around for Trump to resolve his ongoing conflict with China. In the company's first quarter 2025 earnings call, president and chief executive officer Chris Hufnagel told analysts that he is 'optimistic' amid the ongoing tariff dispute as the company has been working since the pandemic to diversify its sourcing. '[In 2025], less than 10 percent of our products are now expected to be sourced from China, down from the mid-teens just earlier this year,' said the CEO, who was optimistic after its Saucony and Merrell brands posted double-digit growth in the first quarter. 'We're targeting to push this down to near zero in 2026.' During a webinar on May 22, Coresight Research CEO Deborah Weinswig noted that some footwear manufacturers have product sitting in warehouses in duty-free zones as they take a 'wait-and-see attitude' until there's more clarity on how to proceed over the next few months. For their part, trade show organizers are prepping for the months ahead by emphasizing face-to-face interactions, innovative product strategies —and flexibility. Sandi Mines, VP of corporate engagement at FDRA and president of FFANY, said about 20 brands are set to exhibit in the show's pop-up space this week, and overall participation in the show is robust. Laura Conwell-O'Brien, the longtime executive director of the Atlanta Shoe Market, which will take place Aug. 9-11, encouraged buyers to 'know your numbers' during a challenging climate. 'Retailers who understand what's working [in terms] of styles, price points and consumer preferences can make confident, data-driven buying decisions,' she said. Flexibility is also essential, she said. 'Amid shifting tariffs, supply chains and trends, adaptability offers a competitive edge. Brands that deliver innovation, reliability and strong support will stand out,' she said, noting that in-person connections are key right now. Christina Henderson, event director for both The Running Event and Switchback, the new outdoor show debuting June 16 in Nashville with more than 190 brands, said now is the time for the industry to come together. 'Brands are eager to reinvigorate their relationships with specialty retailers, likely because the pandemic outdoor boom has faded, and the pivot to digital is less of a sure thing than it was,' Henderson said. 'And retailers are equally motivated to discover new vendors, new products, and new ideas.' Even before the recent wave of M&A activity swept across the industry, analysts predicted that store closings would continue to be a major headline. UBS analyst Michael Lasser in April projected between 40,000 to 50,000 closings by 2029, from the current U.S. store base of around 956,000 locations. In softlines retail, which includes apparel, accessories and footwear, he estimated 12,500 doors will close over the next five years. But there also could be more openings in certain sectors, like sporting goods. Lasser expects Dick's Sporting Goods and Academy Sports + Outdoors to continue to expand their market share through the addition of new locations. The forecast was less promising for department store stalwarts such as Kohl's Corp., Macy's Inc. and Dillard's, and some specialty stores. On the consolidation front, the merger of Saks and Neiman Marcus in December is expected to see some change among vendors now that parent Saks Global has formed one buying team for both the Neiman Marcus and Saks Fifth Avenue banners. In the case of Dick's purchase of Foot Locker Inc., some analysts think the deal could benefit footwear vendors, including Nike Inc. That's because the two retailers target different consumer segments, and the combined entity will pave the way for stronger relationships through multiple platforms. As for Skechers U.S.A. Inc.'s surprise $9 billion deal with 3G Capital to go private, Needham & Co. analyst Tom Nikic said the decision to sell might have been accelerated by the macro- environment and possible thinking that it might be better to navigate current challenges 'without being under the Street's scrutiny.' (Chairman and CEO Robert Greenberg and his son, Michael Greenberg, the company's president, will continue to run day-to-day operations.) TD Cowen's John Kernan said that with 3G's playbook of boosting margins through cost- cutting and efficiencies, there's a likelihood that 'we will see Skechers come public again in the distant future.' Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Connectez-vous pour accéder à votre portefeuille
Yahoo
31-05-2025
- Business
- Yahoo
DXL, Now Open In Boca Raton: Clothes That Actually Fit Big + Tall Men Shouldn't Be A Crazy Idea, Right?
BOCA RATON, Fla., May 31, 2025 /PRNewswire/ -- Destination XL Group, Inc. (Nasdaq: DXLG), the leading integrated-commerce retailer specializing in Big + Tall men's clothing and shoes, announces the grand opening of its latest store in Boca Raton, FL, located in Towne Plaza at 2301 Glades Road. This marks DXL's fifth new store opening of the fiscal year. After decades of designing, creating and offering high-quality clothes that truly fit Big + Tall men, DXL's dedication to an underserved market has only grown. The new Boca Raton location offers a superior shopping experience, featuring styles only found at DXL and, more importantly, sized to actually fit the Big + Tall guy perfectly. The store showcases all of the brands guests love, including Polo Ralph Lauren®, Reebok®, Nautica®, vineyard vines®, Columbia®, Tommy Bahama®, and more. The store also includes DXL's new proprietary FiTMAPSM Sizing Technology, an innovative digital scanning technology that takes each guest's unique measurements. With this information, shoppers can find custom clothing options and get accurate size recommendations across many of DXL's brands for a perfect fit every time. "We are excited to extend our reach to the greater Boca Raton area, offering more options, convenience, and a straightforward shopping experience to our Big + Tall customers," said Harvey Kanter, President and Chief Executive Officer of DXL. "The Boca Raton DXL is not just a new store; it provides men with fashion that fits comfortably and looks great. Our mission is to ensure every Big + Tall guy can wear what he wants." The Boca Raton store opened on May 31, 2025. About Destination XL GroupDestination XL Group, Inc. is the leading retailer of Men's Big + Tall apparel that provides the Big + Tall man the freedom to choose his own style. Subsidiaries of Destination XL Group, Inc. operate DXL Big + Tall retail and outlet stores and Casual Male XL retail and outlet stores throughout the United States, and an e-commerce website, and mobile app, which offer a multi-channel solution similar to the DXL store experience with the most extensive selection of online products available anywhere for Big + Tall men. The Company is headquartered in Canton, Massachusetts, and its common stock is listed on the Nasdaq Global Market under the symbol "DXLG." For more information, please visit the Company's investor relations website: View original content to download multimedia: SOURCE Destination XL Group, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
DXL, Now Open In Syracuse: Clothes That Actually Fit Big + Tall Men Shouldn't Be A Crazy Idea, Right?
SYRACUSE, N.Y., May 17, 2025 /PRNewswire/ -- Destination XL Group, Inc. (Nasdaq: DXLG), the leading integrated-commerce retailer specializing in Big + Tall men's clothing and shoes, announces the grand opening of its latest store in Syracuse, NY, located at 3455 Erie Blvd E. This marks DXL's third new store opening of the fiscal year and its twelfth within the past 12 months across the United States. After decades of designing, creating and offering high-quality clothes that truly fit Big + Tall men, DXL's dedication to an underserved market has only grown. The new Syracuse location offers a superior shopping experience, featuring styles only found at DXL and, more importantly, sized to actually fit the Big + Tall guy perfectly. The store showcases all of the brands guests love, including Polo Ralph Lauren®, Reebok®, Nautica®, vineyard vines®, Columbia®, Levi's®, and more. The store also includes DXL's new proprietary FiTMAPSM Sizing Technology, an innovative digital scanning technology that takes each guest's unique measurements. With this information, shoppers can find custom clothing options and get accurate size recommendations across many of DXL's brands for a perfect fit every time. "We are excited to extend our reach to the greater Syracuse area, offering more options, convenience, and a straightforward shopping experience to our Big + Tall customers," said Harvey Kanter, President and Chief Executive Officer of DXL. "The Syracuse DXL is not just a new store; it provides men with fashion that fits comfortably and looks great. Our mission is to ensure every Big + Tall guy can wear what he wants." The Syracuse store is now open on May 17, 2025. About Destination XL Group Destination XL Group, Inc. is the leading retailer of Men's Big + Tall apparel that provides the Big + Tall man the freedom to choose his own style. Subsidiaries of Destination XL Group, Inc. operate DXL Big + Tall retail and outlet stores and Casual Male XL retail and outlet stores throughout the United States, and an e-commerce website, and mobile app, which offer a multi-channel solution similar to the DXL store experience with the most extensive selection of online products available anywhere for Big + Tall men. The Company is headquartered in Canton, Massachusetts, and its common stock is listed on the Nasdaq Global Market under the symbol "DXLG." For more information, please visit the Company's investor relations website: Investor Contact: 603-933-0541 Related Linkshttp:// View original content to download multimedia: SOURCE Destination XL Group, Inc.
Yahoo
17-05-2025
- Business
- Yahoo
DXL, Now Open In Syracuse: Clothes That Actually Fit Big + Tall Men Shouldn't Be A Crazy Idea, Right?
SYRACUSE, N.Y., May 17, 2025 /PRNewswire/ -- Destination XL Group, Inc. (Nasdaq: DXLG), the leading integrated-commerce retailer specializing in Big + Tall men's clothing and shoes, announces the grand opening of its latest store in Syracuse, NY, located at 3455 Erie Blvd E. This marks DXL's third new store opening of the fiscal year and its twelfth within the past 12 months across the United States. After decades of designing, creating and offering high-quality clothes that truly fit Big + Tall men, DXL's dedication to an underserved market has only grown. The new Syracuse location offers a superior shopping experience, featuring styles only found at DXL and, more importantly, sized to actually fit the Big + Tall guy perfectly. The store showcases all of the brands guests love, including Polo Ralph Lauren®, Reebok®, Nautica®, vineyard vines®, Columbia®, Levi's®, and more. The store also includes DXL's new proprietary FiTMAPSM Sizing Technology, an innovative digital scanning technology that takes each guest's unique measurements. With this information, shoppers can find custom clothing options and get accurate size recommendations across many of DXL's brands for a perfect fit every time. "We are excited to extend our reach to the greater Syracuse area, offering more options, convenience, and a straightforward shopping experience to our Big + Tall customers," said Harvey Kanter, President and Chief Executive Officer of DXL. "The Syracuse DXL is not just a new store; it provides men with fashion that fits comfortably and looks great. Our mission is to ensure every Big + Tall guy can wear what he wants." The Syracuse store is now open on May 17, 2025. About Destination XL Group Destination XL Group, Inc. is the leading retailer of Men's Big + Tall apparel that provides the Big + Tall man the freedom to choose his own style. Subsidiaries of Destination XL Group, Inc. operate DXL Big + Tall retail and outlet stores and Casual Male XL retail and outlet stores throughout the United States, and an e-commerce website, and mobile app, which offer a multi-channel solution similar to the DXL store experience with the most extensive selection of online products available anywhere for Big + Tall men. The Company is headquartered in Canton, Massachusetts, and its common stock is listed on the Nasdaq Global Market under the symbol "DXLG." For more information, please visit the Company's investor relations website: Investor Contact: 603-933-0541 Related Linkshttp:// View original content to download multimedia: SOURCE Destination XL Group, Inc.
