Destination XL Group Inc. plans to reinstitute TV advertising to grab the attention of big and tall guys after noting the elimination of a fall marketing campaign hurt fourth-quarter sales.For the three months ended Jan. 28, net income was $1.8 million, or 4 cents a diluted share, against a net loss of $1.4 million, or 3 cents, a year ago. On an adjusted basis, diluted earnings per share were 2 cents, compared with an adjusted loss of 2 cents a year ago. Net sales slipped 1.1 percent to $122.6 million from $124 million. The company said DXL comparable-store sales were down 1.9 percent for the quarter.Wall Street was expecting EPS of 1 cent on sales of $125.77 million.Shares of Destination XL fell 4.2 percent to $2.30 at 11:31 a.m.The company attributed the decline in sales to the “overall weakness in the retail environment, as well as the company decision to eliminate its fall marketing campaign."David Levin, president and chief executive officer, said, “Despite the 2016 retail environment being one of the most challenging in recent memory, we were very pleased to deliver strong growth in EBITDA and free cash flow.”The company said earnings before interest, taxes, depreciation and amortization for the quarter rose 48.2 percent to $10.8 million from $7.3 million a year ago. Levin said the company “fully funded our DXL store expansion from free cash flow and grew EBITDA nearly 36 percent.” The company opened its 200th DXL store in 2016.Levin said, “Six out of 10 big and tall guys still do not know who we are and, therefore, our top priority in 2017 is customer retention and acquisition. We intend to fuel that objective with a marketing dollar increase of approximately 40 percent this year, including reinstituting television advertising beginning April 2.”Levin said the company also is planning to elevate its digital distribution channel to help grow its customer base. Destination XL has a new chief digital and information officer, Sahal Laher.Wunderlich Securities Inc. analyst Eric Beder has a “buy” rating for shares of Destination XL, and a $4 target price.“With store growth inevitably decelerating, and with a majority of big and tall males still not aware of the company, we view the marketing spend as an appropriate strategy and believe the returns can be impressive,” Beder said. He noted that the company will open only 20 doors for fiscal year 2018.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)