• Q3 loss of $6.3m versus $4.1m
  • Sales increase 5.5% to $93.6m 
  • Gross margin falls 90 basis points
The companys net loss widened to $6.3m during the third quarter

The company's net loss widened to $6.3m during the third quarter

Big and tall men's wear retailer Destination XL Group has seen its third-quarter loss widen, despite booking an increase in sales.

The company's net loss amounted to US$6.3m for the three months to 1 November, compared to $4.1m in the same period of last year.

Sales, however, increased 5.5% to $93.6m from $88.7m last year. The company said sales benefited from new technology that enables nearly 300 stores to fulfil online orders that cannot be fulfilled in its distribution centre.

But gross margin declined 90 basis points to 43.3% from 44.2%, due to lower merchandise margins associated with the increased promotional activity to drive Casual Male XL customers to the DXL stores.

Nonetheless president and CEO David Levin said: "We are encouraged by our strong third-quarter financial results and positive key DXL performance metrics as we continue to execute on our strategy."