• Third-quarter loss of US$4.1m, from $1.6m 
  • Sales down 0.6% to $88.2m versus $88.7
  • Comparable sales increase 4.4%

Destination XL Group has today (22 November) reported a wider third-quarter loss, weighed down by slower sales and higher costs. 

"For the first two months of the quarter, sales were negatively affected by the soft overall retail market due to the government shutdown as well as unseasonably warm fall weather," said president and CEO David Levin.

The company, formerly Casual Male Retail Group, said results were also hurt by $3.5m in lost sales from closed Casual Male stores and a $400,000 decline from the shift in comparable weeks.

However, Levin added: "We turned in a solid financial performance, and made excellent progress on our DXL strategy in the third quarter." 

Sales at DXL stores in October were up 30.2% year-on-year, along with a 25.3% comparable store sales increase.

"We are encouraged by the progress we are making on our transition to DXL. We continue to believe that the DXL concept will yield positive long-term results and enhanced shareholder value," Levin added.

Gross margin, including occupancy costs, improved to 44.5% for the three months to 2 November, from 44% in the same period last year.