Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Investor Presentation (January 2023)
32 slides from Destination Xl's investor presentation, Jan 9, 2023
Slide 1: Investor Presentation January 2023
INVESTOR PRESENTATION JANUARY 2023 Exhibit 99.2
Slide 2: Forward-looking statements disclaimer
This presentation regarding Destination XL Group, Inc. (“the Company”, “Destination XL”, “DXLG”, “we”, “us” or “our”) is for you to familiarize yourself with the Company. This presentation contains information, statements, beliefs and opinions which are forward-looking, and which reflect current est
Slide 3: Wear What You Want
WEAR WHAT YOU WANT ℠
Slide 4: Customer testimonial
“I came into the store stressed out and feeling pretty demeaned by the fact that no-one in the community felt it was worth stocking clothing that could fit someone my size. I left the store feeling respected, understood, and like there was nothing really wrong with me as an individual.” - Thomas; Re
Slide 5: At DXL, Big + Tall is all we do
“At DXL, Big + Tall is all we do – and our positioning is in direct contrast to other retailers. The Big + Tall man has largely been ignored by the broader apparel industry. Few brands, fewer styles, and sizing based on someone else’s definition of ‘regular’ limit him every time he tries to find clo
Slide 6: Our Mission
WE EXIST TO PROVIDE THE BIG + TALL MAN WITH THE FREEDOM TO CHOOSE HIS OWN STYLE, SO YOU CAN WEAR WHAT YOU WANT. 6 OUR MISSION ℠
Slide 7: DXL at a glance: key highlights
* Source: Coresight Research TAM Model, DXL Consumer Survey, 2022 FY22 expected Sales $540.0m - $545.0m; Adjusted EBITDA 12.5% - 13.5% 7 consecutive quarters of positive comps and double-digit adjusted EBITDA margins Positioned to capitalize on $23B* Big + Tall TAM 69% sales in Stores, 31% sales Dig
Slide 8: The Opportunity
Se eee DUlUltlttt—“i—s—™—OOO—C—” THE OPPORTUNITY
Slide 9: Big + tall men's apparel is a highly fragmented $23B market
big + tall men’s apparel is A highly fragmented $23B MARKET. growing faster THAN THE OVERALL Men’s MARKET The pandemic accelerated weight gain among American men. ~39M American men are Big + Tall Affluent (income $100K+) Big + Tall men spend $7.4B per year on apparel 70%+ of adult men 20+ are consid
Slide 10: The DXL Advantage
Se eee DUlUltlttt—“i—s—™—OOO—C—” THE DXL ADVANTAGE
Slide 11: DXL's Big + Tall brand position is defended by a moat
DXL’S BIG + TALL BRAND POSITION IS DEFENDED BY A MOAT OUR PROPRIETARY FIT We are different because our fit is different. Our merchandise is designed and crafted only for the Big + Tall customer BROADEST & MOST EXCLUSIVE MERCHANDISE ASSORTMENT Broad, highly-curated, head-to-toe selection; over 5,000+
Slide 12: #22272C #2A4158 #597387 #958A56 #AA6A47 #595959
#22272C #2A4158 #597387 #958A56 #AA6A47 #595959 12
Slide 13: We are the fit experts, bar none
WE ARE THE FIT EXPERTS, BAR NONE DXL provides a unique fit and highly differentiated products for Big + Tall customers What We Do What It Means TECHNICAL EXPERTISE Proprietary fit specifications, rather than simply “sizing up” regular sizes Clothes that fit our guy the right way. Return rate of only
Slide 14: The DXL assortment is unrivaled in the market
5,000+ STYLES SIZES FROM 36” – 70” WAIST AND XL TO 8XL/8XLT 100+ NATIONAL BRANDS (45% of DXL Sales) 81% Casual Sportswear 15% Tailored Clothing 4% Footwear DXL OWN BRANDS DXL offers a breadth of assortment focused on providing the Big + Tall consumer with one-stop shopping and head-to-toe outfitting
Slide 15: Exclusive national brands and exclusive collections only at DXL
#22272C #2A4158 #597387 #958A56 #AA6A47 #595959 EXCLUSIVE NATIONAL BRANDS AND EXCLUSIVE COLLECTIONS ONLY AT DXL 15 EXCLUSIVE BRANDS EXCLUSIVE COLLECTIONS
Slide 16: The DXL store experience
THE DXL STORE EXPERIENCE SHOWCASES OUR BRAND, ASSORTMENT AND FIT WITH A SERVICE LEVEL THAT SETS US APART Certified Fit Experts • High Standards of Service • NPS of 77
Slide 17: Exponentially accelerated growth post-pandemic
Exponentially Accelerated Growth Post-Pandemic Sales and Adjusted EBITDA** Adjusted EBITDA (in thousands) Sales (in thousands) The above graph excludes results for Fiscal 2020 due to COVID pandemic and its material impact on results. *Fiscal 2022 is based on the mid-point of the Company’s current pu
Slide 18: Fiscal 2019 to Fiscal 2022 forecast financial summary
FISCAL 2019 FISCAL 2020 FISCAL 2021 FISCAL 2022 FORECAST Sales $474.0M $318.9M $505.0M $540.0 - $545.0M Margin Percent 43.1% 32.9% 49.5% SG&A Percent 38.1% 40.5% 34.2% Net Income (Loss) $(10.2)M $(64.5)M $56.7M Adjusted EBITDA Margin* 5.0% (7.6%) 15.2% 12.5% - 13.5% The operating cost structure in f
Slide 19: DXL is in the strongest financial position in its history
DXL is in the strongest financial position in the history of the company No debt and an improved cash position. Since the third quarter of fiscal 2019, we have improved our inventory turn by over 30%. This solid financial position will enable us to invest in our growth initiatives. (IN MILLIONS) FIS
Slide 20: Compelling runway for future growth
Differentiated and Defendable Brand Position Deep “Experience Based” Customer Relationships Material Store Unit Growth Opportunities Digital Commerce Transformation Driving Greater Integrated Commerce COMPELLING RUNWAY FOR FUTURE GROWTH
Slide 21: Brand positioning
BRAND POSITIONING Driven by product and presentation, not price Clear, impactful messaging to drive awareness and create deeper customer connections Multi-touch campaign across all marketing channels Spring 2023 reveal + full-year continuation REPOSITIONING VERSUS THE COMPETITION Rightfully + boldly
Slide 22: Loyalty program, user generated content and customer data platform
LOYALTY PROGRAM Recognize, incent, + activate top customers via an Acquire → Migrate → Retain program focus Newly revitalized program rewards deeper interactions + delivers truly differentiated benefits by tier Relaunched in late Q3, with visible early impacts among top customer tiers USER GENERATED
Slide 23: Store opportunities and development will drive growth
Store opportunities and development will drive growth We have identified three distinct cohorts which represent opportunities to grow and enhance our store portfolio by driving greater levels of traffic, improved conversion and higher average order value: WHITE SPACE MARKETS CASUAL MALE STORES DXL S
Slide 24: Store growth and development financials are improving
Store Growth & Development financials are Improving We believe there is opportunity to grow our store portfolio by up to 50 new stores in whitespace markets in the next few years. We also believe up to 80 existing CMXL and DXL stores will become more productive through our remodel strategy. We expec
Slide 25: Evolution of DXL website and app
EVOLUTION OF DXL WEBSITE AND APP Increased focus on delivering a consistently superior integrated commerce experience, giving our customer the freedom to shop anywhere, anytime, on any device with ease. NEW TECHNOLOGY INVESTMENTS Web and app platform enhancements enable greater personalization and i
Slide 26: Appendix
APPENDIX Actual Results through Q3 Fiscal 2022 Actual Results Fiscal 2021 Non-GAAP Reconciliations
Slide 27: YTD Q3 FY 2022 results highlights
YTD Q3 FY 2022 Results Highlights: (1) Results for the first nine months of fiscal 2022 includes a tax benefit related to the release of $33.5 million, or $0.50 per diluted share, of the valuation allowance against the deferred tax assets. Adjusted EBITDA, Adjusted EBITDA margin and Free Cash Flow a
Slide 28: Valuation allowance and net operating loss carryforwards
At the end of fiscal 2013, we established a full valuation allowance against our net deferred tax assets, which consist primarily of net operating loss carryforwards. During the first nine months of fiscal 2022, we released $33.5M of our valuation allowance, remaining allowance is $2.4M. The below g
Slide 29: Non-GAAP financial measures
NON-GAAP FINANCIAL MEASURES (1) Results for the first nine months of fiscal 2022 includes a tax benefit related to the release of $33.5 million, or $0.50 per diluted share, of the valuation allowance against the deferred tax assets.
Slide 30: Non-GAAP financial measures
NON-GAAP FINANCIAL MEASURES 30
Slide 31: Non-GAAP financial measures
NON-GAAP FINANCIAL MEASURES * The Company has not reconciled forward-looking adjusted EBITDA for fiscal 2022 because it would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, specifically related to tax items
Slide 32: Building big impacts
BUILDING BIG IMPACTS To develop targeted ESG initiatives, we are establishing baselines across our operations for Scope 1 and 2 emissions, energy use and much more. These measurements will allow us to build a strong ESG foundation that we can scale through our supply chain relationships. With this f
Destination XL Group — Investor Presentation (January 2023) on 6ix