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Destination XL Group, Inc., continues to carve costs and abbreviate agents as it works to cross its way through the bound pandemic.

On Friday morning, the Canton, Mass.-based men’s big and alpine banker appear a net accident in the third division of $7 million, hardly bigger than the $7.2 actor accident appear in the above-mentioned year’s third quarter. The aggregation additionally acquaint a accident of $1.7 actor in adapted EBITDA for the aeon adjoin a accumulation of $1.7 actor in the prior-year quarter. Comparable-store sales fell 20.5 percent in the quarter, which represented an advance over the added quarter, while absolute sales were bottomward 20.1 percent to $85.2 million, from $106.6 actor in the prior-year third quarter. However, like best added retailers, online sales on the DXL e-commerce armpit rose 28.4 percent in the quarter.
“For the accomplished eight months we’ve been pivoting to position DXL for the abiding accretion from COVID-19 and approaching growth,” said Harvey Kanter, admiral and arch controlling officer. Abundance sales in the period, he said on the antithesis call, were bottomward 31.5 percent in the period, but the aggregation saw cartage and about-face advance anniversary ages from June through September. However, in October as the virus resurged, fires ravaged the West Coast and the acclamation resulted in distractions, DXL saw sales drive apathetic by 600 abject credibility beyond the country, Kanter said on the call.
One ablaze atom did appear in the aeon — e-commerce. In the quarter, absolute sales on DXL.com — which includes both the company’s e-commerce armpit as able-bodied as alien online marketplaces — were up 28.4 percent, and absolute absolute sales added 18.2 percent. The absolute assimilation of absolute sales now accounts for 33.4 percent of the business, he said.

“DXL is positioned to abide benefiting from the about-face online. We accept adjustable off-mall abundance base, a ample and growing belvedere digitally and acute and differentiated omnichannel capabilities, which should adeptness not alone our absolute abject of barter but a new chump as well,” Kanter said. “Our omnichannel chump is bristles times added advantageous than a digital-only chump and three times added advantageous than a store-only customer. We were admiring to see a cardinal of our store-only barter become omnichannel barter during this time.”
Despite the success online, the aggregation has additionally been alive to access its ”financial flexibility” and afresh completed its added accumulated restructuring in the accomplished nine months. That has resulted in a abridgement in the accumulated workforce of 28 percent and the abundance workforce of 54 percent, or 1,078 positions, aback the alpha of the year.
Specifically, on Nov. 2, the aggregation alone 45 accumulated positions, which is estimated to save $3.8 actor on an anniversary basis.

In addition, assertive able casework and business costs were additionally eliminated, he said, “to added right-size our amount structure. Our adeptness to restructure has been analytical as it creates operating advantage and allows us to bigger bear a abatement in revenue. Reducing our amount anatomy and attention our clamminess accept been of ascendant accent to our abiding recovery.” This move is projected to save $5.2 actor annually, he said.
Kanter said the aggregation is alive actively with its landlords to “right-size the company’s control costs” and best accept been accommodating to “assist us with managing banknote breeze and, ultimately, the control amount of our retail stores.”
In agreement of merchandise, Kanter said accidental accouterment and loungewear abide to beat tailored clothing, which charcoal acutely challenging. Knitwear, shorts, activewear, denim, underwear and Skechers shoes are amid the bestsellers.

Promotional action was acute in April and May in an attack to “keep appurtenances flowing…and banknote advancing into our company,” but that was pulled aback to a more-targeted akin in the third division to focus on those that absolutely appulse gross margins.
The aggregation additionally has a broad business primarily with Amazon Essentials, which accounted for 71 percent of the amount of aftermost year, or $4.3 million. But Kanter is hopeful that class will abound with the barrage of Goodthreads, Amazon’s flush clandestine brand, that he believes will represent “greater opportunity” in the approaching for DXL as the big and alpine partner.
Looking ahead, Kanter said he expects business will “continue to be challenged until we are able to alpha acquisition socially in beyond groups afresh and we see an access in appeal for event-based arcade visits, but we accept alert optimism for connected improvement.”

At the end of the quarter, the aggregation had a banknote antithesis of $21.4 million and absolute debt of $82.9 million, which Kanter said represents “sufficient clamminess to cross our alive basic needs for the abutting 12 months after added costs and bold no added cogent shutdowns of the economy.”
At the end of the quarter, DXL operated 316 stores.
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