Destination XL Group Expects 2024 Sales Of $500M-$530M Vs. $524.7M Consensus; Sees Net Income Of ~$17M And Adjusted EBITDA Of ~$36M

Author: Benzinga Newsdesk | March 21, 2024 07:09am

Financial Outlook

We plan to invest in our brand, stores and digital business in fiscal 2024, which will include increased marketing investments, as we look to accelerate our growth trajectory. Further, we believe that improvement in consumer discretionary spending will continue to be slow to recover given the current economic landscape caused by the past two years of elevated inflation and uncertainty over the upcoming presidential and congressional elections. We have built our plans around maintaining a minimum acceptable level of profitability, which we are setting at 7.0% adjusted EBITDA margin.  As such, our guidance for fiscal 2024 assumes a mid-to-high single digit decrease in comparable sales through the first half of fiscal 2024, with improvement to a low to mid-single digit increase in comparable sales in the second half, resulting in a range for comparable sales of (4.4)%-1.4% for the full year.  Our guidance for fiscal 2024, based on a 52-week year is as follows: 

• Sales of $500.0 - $530.0 million
• Net income of approximately $17.0 million (assuming sales mid-point)
• Adjusted EBITDA of approximately $36.0 million (assuming sales mid-point) 

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