Destination XL Group Inc. plans to reinstitute TV advertising to grab the attention of big and tall guys after noting the elimination of a fall marketing campaign hurt fourth-quarter sales.
For the three months ended Jan. 28, net income was $ 1.8 million, or 4 cents a diluted share, against a net loss of $ 1.4 million, or 3 cents, a year ago. On an adjusted basis, diluted earnings per share were 2 cents, compared with an adjusted loss of 2 cents a year ago. Net sales slipped 1.1 percent to $ 122.6 million from $ 124 million. The company said DXL comparable-store sales were down 1.9 percent for the quarter.
Wall Street was expecting EPS of 1 cent on sales of $ 125.77 million.
Shares of Destination XL fell 4.2 percent to $ 2.30 at 11:31 a.m.
The company attributed the decline in sales to the “overall weakness in the retail environment, as well as the company decision to eliminate its fall marketing campaign.”
David Levin, president and chief executive officer, said, “Despite the 2016 retail environment being one of the most challenging in recent memory, we were very pleased to deliver strong growth in EBITDA and free cash flow.”
The company said earnings before interest, taxes, depreciation and amortization for the quarter
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