Destination XL Group Earnings: Here’s Why the Stock is Up Now
Destination XL Group (NASDAQ:DXLG) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.58%.
Destination XL Group Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.03 in the quarter versus EPS of $0.06 in the year-earlier quarter.
Revenue: Decreased 2.89% to $97.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Destination XL Group reported adjusted EPS loss of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0. It missed the average revenue estimate of $103.6 million.
Quoting Management: “The highlight of the quarter was the success of our six-week Destination XL marketing campaign,” said President and CEO David Levin. “The comprehensive campaign included TV advertising as well as a mix of radio and digital marketing. As a result of the campaign, overall DXL comparable store sales increased 28.8% in the second quarter of 2013 from a year ago. Looking specifically at DXL stores that have been open for more than a year, sales climbed an impressive 16.5%. DXL brand awareness increased from 13.0% to 18.0% while sales from waist size 46″ and below increased to 40.5% of sales for the second quarter from 36.3% a year ago. We also grew transaction size and generated greater traffic at our DXL stores. On average, our DXL stores experienced a 26.1% increase in new customers for the second quarter of fiscal 2013 compared with last year’s second quarter.”
Key Stats (on next page)…