Destination XL Group Inc. (OTCMKTS: DXLG) announced its Q2 2021 financial results and provided revised fiscal 2021.
Q2 2021 sales up 81.3%
The company reported total sales of $138.6 million in Q2 2021, an increase of 81.3% from 76.4 million in Q2 2020 and up 12.5% from 123.2 million in Q2 2019. Comparable sales were up 21.6% compared to Q2 2019, driven by the company’s direct business, which grew 52.2%, and stores that were up 13.1%. The increase in direct business was a result of the DLX-com eCommerce platform w which generated sales growth of 66.4% relative to Q2 2019.
Destination XL Group reported a net income of $24.5 million or $0.36 per diluted share relative to a net loss of $10.7 million or $0.21 per diluted share in Q2 2020. Adjusted EBITDA in Q2 2021 was $29.8 million relative to $4.3 million in Q2 2020. For the first six months of the year, cash flow from operations was $42.2 million versus $9.0 million for the same period a year ago.
CEO and President Harvey Kanter said, “We are very pleased to report second quarter results that far surpassed our internal expectations. We believe that we are witnessing a material shift in how consumers are thinking about and engaging with DXL. As a result, we are raising our full year 2021 guidance to reflect the revised outlook we have for the future of DXL, but also caution our optimism given the ongoing surges of the Covid Delta variant and ongoing risk in the supply chain.”
Destination XL revises fiscal 2021 guidance
Following an exceptional performance in Q2, the company is bullish about 2H 2021. As a result, the company has revised its fiscal 2021 financial guidance but expects the gross margin to drop because of holiday promotions. As a result, the company expects sales of between $490 million and $505 million for fiscal 2021 and net income of between $0,64 and $0.76 per share.