Destination XL Swings To Loss In Q4

(RTTNews) - Specialty retailer Destination XL Group, Inc. (DXLG) (CMRG) Friday reported a net loss for the fourth quarter, compared with a profit in the same period last year, mainly on lower revenues, higher expenses and a significantly higher tax provision recorded during the period. A sluggish holiday selling season, adverse weather in certain regions, and closure of Casual Male XL stores, primarily caused the drop in revenues.

For the fourth quarter, the company reported a net loss of $55.15 million or $1.14 per share, compared with a net profit of $4.22 million or $0.09 per share reported for the corresponding period last year.

Excluding certain items, loss was $6.2 million or $0.13 per share. On average, five analysts polled by Thomson-Reuters estimated the company's loss to be $0.02 for the quarter. Analysts' estimates typically exclude one-time items.

Selling, general and administrative expenses increased to $47.9 million from $43.29 million in the year-ago quarter, and depreciation and amortization rose to $7.29 million from $4.19 million a year earlier

Provision for income taxes stood at $48.77 million for the fourth quarter, sharply up from $2.63 million a year ago.

Sales for the 3-month period declined to $108.54 million from $114.86 million in the same period last year. Analysts expected sales of $108.39 million. Comparable store sales increased by 4.2 percent.

Looking ahead, the company expects loss for 2014 to be $0.21 to $0.27 per share on sales of $405 million to $410 million. Adjusted loss per share is expected to be $0.12 to $0.16.

Further, capital expenditures are expected to be about $36.4 million and comparable store sales are expected to rise by 5.6 percent.

For 2014, analysts estimate loss to be $0.12 per share on revenues of $387.81 million.