Why Men's Big And Tall Apparel Retailer Destination XL's Shares Are Sliding Today
Portfolio Pulse from Nabaparna Bhattacharya
Destination XL Group, Inc. (NASDAQ:DXLG) shares dropped after reporting Q3 net sales of $119.19 million, missing analyst expectations of $120.75 million and showing an 8.1% decline. Comparable sales decreased by 6.7% Y/Y due to reduced store traffic and transaction values amid economic and inflationary pressures. The company's adjusted EPS of $0.07 met expectations, but gross margin and adjusted EBITDA fell compared to the previous year. Destination XL also lowered its full-year sales and adjusted EPS outlook, leading to a 7.90% decline in its share price to $4.32.
November 17, 2023 | 4:56 pm
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NEGATIVE IMPACT
Destination XL's Q3 sales miss and lowered full-year outlook, coupled with a decline in gross margin and adjusted EBITDA, have led to a 7.90% drop in its share price.
The negative impact on DXLG's stock is due to the company's failure to meet sales expectations and the subsequent lowering of its financial outlook, which typically erodes investor confidence and can lead to a sell-off in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100