Destination XL Group, Inc. (DXLG) swung to a net profit for the quarter ended Jan. 28, 2017. The company has made a net profit of $1.78 million, or $ 0.04 a share in the quarter, against a net loss of $1.38 million, or $0.03 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $1.09 million, or $0.02 a share compared with a net loss of $0.79 million, or $0.02 a share in the last year period.
Revenue during the quarter went down marginally by 1.13 percent to $122.65 million from $124.04 million in the previous year period. Gross margin for the quarter contracted 96 basis points over the previous year period to 44.87 percent. Operating margin for the quarter period stood at positive 2.07 percent as compared to a negative 0.44 percent for the previous year period.
Operating income for the quarter was $2.54 million, compared with an operating loss of $0.55 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.80 million compared with $7.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 292 basis points in the quarter to 8.81 percent from 5.89 percent in the last year period.
"Despite the 2016 retail environment being one of the most challenging in recent memory, we were very pleased to deliver strong growth in EBITDA and free cash flow," said president and chief executive officer David Levin. "In 2016, we fully funded our DXL store expansion from free cash flow and grew EBITDA nearly 36%,"
For financial year 2017, Destination XL Group, Inc. forecasts revenue to be in the range of $470 million to $480 million. The company projects net loss to be in the range of $5.70 million to $11.70 million. The company expects adjusted net loss to be in the range of $3.40 million to $7 million. The company expects diluted loss per share to be in the range of $0.11 to $0.23. The company expects diluted loss per share to be in the range of $0.06 to $0.14 on adjusted basis.
Debt comes down
Destination XL Group, Inc. has recorded a decline in total debt over the last one year. It stood at $63.10 million as on Jan. 28, 2017, down 7.40 percent or $5.04 million from $68.14 million on Jan. 30, 2016. Total debt was 23.43 percent of total assets as on Jan. 28, 2017, compared with 24.84 percent on Jan. 30, 2016. Debt to equity ratio was at 0.71 as on Jan. 28, 2017, down from 0.77 as on Jan. 30, 2016.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
