Destination Xl Group, Inc. (DXLG) SEC Filing 10-Q Quarterly report for the period ending Saturday, November 2, 2019

Exhibit 99.1

Destination XL Group, Inc. Reports Third Quarter Financial Results

Total Comparable Sales Increased +0.2%

CANTON, Mass., November 22, 2019 – 

Highlights

Management Comments

“For the third quarter, we delivered our first positive sales comp for the year at +0.2%.  This is a small win for us and a first step in the right direction,” said Harvey Kanter, President and Chief Executive Officer.  “Comp sales accelerated as the quarter progressed with (-2.3)% in August, +0.2% in September and +2.5% in October.  In our Direct channel, we were pleased to see a solid, double-digit percentage increase in site traffic which resulted in a mid-single digit growth rate in our Direct sales results.  Finally, our wholesale business generated $2.9 million in Sales, or an increase of $2.5 million over the prior year quarter.  Although overall DXL sales performance is still not to the level that I believe we are capable, we remain cautiously optimistic and expect greater inflection in the coming quarters.”

Kanter continued, “During the quarter, we tested a variety of new promotional events to further drive the omni-channel retail experience, aligning direct and store promotions.  While the promotional events were unsuccessful in driving the sales results we had hoped for, we did gain some valuable insights that will benefit our future promotions.  We had expected the tests we developed and implemented in-store could be capable of driving incremental traffic and while they did achieve that directionally, the promotions were not sufficiently offset by traffic.  We also saw a higher sell through of clearance merchandise.  Lastly, our gross margin was impacted by a change to our internal inventory aging policy as part of our ongoing diagnostic of the inventory mix.  In recent years, our tailored clothing assortments have struggled from a noticeable and continued shift in customer preference to casual sportswear.  As a result, we performed an inventory diagnostic in the third quarter which resulted in a re-evaluation of our lower of cost or market reserves on certain aged inventory, particularly in tailored clothing.  As a