Destination XL Posts Q1 Loss; Names Peter Stratton, Jr. CFO

(RTTNews) - Destination XL Group, Inc. (DXLG) reported a first-quarter net loss of $3.54 million or $0.07 per share, compared to profit of $1.01 million or $0.02 per share, last year. Adjusted net loss, non-GAAP basis, was $2.09 million or $0.04 per share, for the quarter. On average, five analysts polled by Thomson Reuters expected the company to report a loss per share of $0.02 for the quarter. Analysts' estimates typically exclude special items. Total sales increased 3.0% to $96.8 million from $94.0 million prior year. The company said the increase in total sales was primarily due to an increase in comparable sales 3.4%. Analysts expected revenue of $95.91 million for the quarter.

Gross margin, inclusive of occupancy costs, was 45.4% as compared to a gross margin rate of 47.2% for the first quarter of prior year.

The company said its fiscal 2014 loss guidance range of $0.21 to $0.27 per share, or $0.12 to $0.16 per share on a non-GAAP basis, remains unchanged. Total sales are now expected to be in the range of $413.0 million to $418.0 million; an increase from the prior guidance range of $405.0 million to $410.0 million. Analysts expect the company to report a loss per share of $0.14 on revenue of $407.65 million in fiscal 2014.

Destination XL Group also announced that Peter Stratton, Jr., has been appointed to the position of senior vice president, CFO and treasurer, effective June 1, 2014. Stratton replaces John Kyees, who was serving as interim CFO.

Stratton has been serving as Destination XL's senior vice president of finance, corporate controller, and chief accounting officer since September 2009. He joined the company in June 2009 as vice president of finance.