Destination XL Announces Turnaround Plan Amid Sales Decline
Destination XL reported a second-quarter sales decline of 3.4% year-over-year to $111.6 million, with net income rising to $2 million due largely to a tariff refund. The company cited declining store traffic as its biggest challenge and announced plans to close some stores in an effort to improve return on assets. Newly appointed Interim CEO Lionel Conacher expressed optimism about the potential for sales growth while acknowledging that Q2 results were worse than expected. CFO Peter Stratton attributed reduced customer traffic to weight loss journeys, shifting spending priorities, and delayed purchasing decisions. The company also abandoned its previously planned merger with FullBeauty as it no longer deemed it in shareholders' best interests. As part of a broader turnaround strategy, Destination XL appointed Jimmy Olsson as Chief Growth Officer on September 2. His four-pillar plan includes leveraging FitMap body scanning technology and expanding private label brands to attract new customers.
Tickers: $DXLG
Topics: merger update sales decline store closures