Dive Brief:
- Growing its physical store reach, Destination XL Group, the men’s big and tall apparel company, is opening nine new stores this year, the company announced last week. The retailer currently has around 300 locations.
- The announcement came just before the company reported earnings. For Q4, the retailer reported total sales fell 4.7% year over year to $137.1 million. Comparable sales for the quarter dropped 10.1% from the previous year. Net income for the holiday quarter fell nearly 53% year over year to $5.2 million.
- For the full year, the company’s total sales fell 4.4% year over year to $521.8 million, while comparable sales dipped 4.6% year over year. Net income for the fiscal year fell 68.7% to $27.9 million.
Dive Insight:
Destination XL CEO Harvey Kanter attributed the company’s 2023 results to a downturn in online and in-store traffic stemming from “a challenging apparel retail market” last year. This year, the company will open more stores, launch new collaborations and marketing initiatives and improve its digital experience, Kanter said.
“These new locations underscore our dedication to meeting our customers’ where they live, offering them an expansive selection of styles that fit perfectly,” Kanter said in a statement regarding the new stores.
Destination XL has stores in every major metro market in the U.S., but the company points to geographic voids in its brick-and-mortar strategy. According to the retailer’s own research, 44% of its target demographic do not shop with the company because there is not a store near them.
In 2023, the retailer opened three new stores — its first openings since fiscal 2019. The company has plans for 15 new stores annually from 2025 through 2027.
Building on efforts to revamp the company, Destination XL last year unveiled its “Wear What You Want” rebrand. The company, which years earlier seemed to be bound for bankruptcy, engaged in a turnaround that resulted in a dramatic increase in sales as it pursued a deeper understanding of fit and marketing.
The retailer partnered with DTC company Untuckit last October to introduce a capsule collection of shirts in up to five fits ranging from small to XXXL.
