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Casual Male Retail Group Inc.’s transformation into Destination XL Group Inc. will take full effect Monday as the big-and-tall retailer formally changes its corporate name to reflect its focus on its Destination XL stores and destinationxl.com Web site.
The company, the largest big-and-tall retailer in the U.S., changed its ticker symbol on the Nasdaq exchange to DXLG from CMRG on Dec. 5. A change in corporate name had been considered highly likely.
“Changing our name to Destination XL Group Inc. truly reflects who we are today as we expand the Destination XL concept and rebrand the company as a whole,” said David Levin, president and chief executive officer of the Canton, Mass.-based firm. “The 49 Destination XL stores currently in operation and our destinationxl.com Web site have already proven to be successful and we are confident that this transformation will accelerate our long-term sales and profitability.”
Since launching the first Destination XL store in Las Vegas in August 2010, the larger superstores and their broader, more upscale assortments have been the standout performers within the company portfolio. They average about 10,000 square feet, about three times the size of a typical Casual Male store, and carry about 2,000 items, more than three times the CM count.
When it reported third-quarter results in November, the company said that it would phase out the Casual Male concept entirely by the end of 2015. The following month, it said it would open between 225 and 250 DXL stores by that same deadline. As of Dec. 4, it operated 377 Casual Male XL full-price and outlet stores, 12 upscale Rochester Clothing units and 44 DXL stores.
Although company officials concede that some of the recent weakness within Casual Male has been a consequence of DXL’s expansion, same-store sales were flat at Casual Male during the third quarter while rising 13.8 percent at DXL.
The conversion to the newer store format hasn’t come without a cost. The process subtracted 4 cents a share from the company’s third-quarter financial results, contributing to a loss of 3 cents a share. Sales fell 0.3 percent to $88.7 million during the period.