Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Corporate Update (January 2021)
16 slides from Destination Xl's corporate update, Jan 11, 2021
Slide 1: Holiday Sales Update January 2021
1 1/8/2021 Holiday Sales update January 2021 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements: Certain information contained in this presentation constitute forward-looking statements under the federal securities laws and include statements regarding the Company’s expectations with respect to its sales, adjusted EBITDA, free cash flow and total debt, net of cash, f
Slide 3: Table of contents
Holiday Sales Performance Fiscal 2020 Full-Year Guidance Fiscal 2021 Operating Assumptions Fiscal 2021 Outlook Sales, Merchandising and Marketing Strategy Store Portfolio Strategy Liquidity Table of contents
Slide 4: Holiday Sales Performance
Total Sales of $78.4 million compared to $103.1 million, or down 23.9% for the same period in fiscal 2019. Comparable sales were (24.0)%, driven by: Store comp decreased (38.1)% Direct comp increased 12.7%, which includes an increase in DXL.com of 28.4% Sales from wholesale increased to $4.0 million
Slide 5: DXL.com digital revenue growth
Our DXL.com revenue was +28% for the 9-week holiday period including +31% in December, in line with the growth we have seen through most of 2020 New customers were +42% for DXL.com, representing significant growth and showcasing our ability to win business during this time of changing consumer prefe
Slide 6: Fiscal 2020 Full-Year Guidance
Total Sales of $317.0 million to $319.0 million, down from $474.0 million in fiscal 2019 Adjusted EBITDA of $(27.0) million to $(26.0) million, down from $23.5 million in fiscal 2019 Free Cash Flow of $(6.0) million to $(4.0) million, down from $2.4 million in fiscal 2019 Total Debt, net of cash, of
Slide 7: Fiscal Year 2021 COVID-19 Assumptions
7 Fiscal year 2021 COVID-19 Assumptions We believe our financial projections for fiscal year 2021 are reasonable and achievable based on our outlook for economic recovery from COVID-19. Our financial projections assume that vaccines against the COVID-19 virus are widely available and distributed by
Slide 8: Fiscal Year 2021 Operating Assumptions
Sales are expected to improve in fiscal 2021, when compared to fiscal 2020, with continued double-digit growth in Direct and modest recovery in Stores, but less than fiscal 2019 levels. Merchandise Margins will improve from an overall reduction in promotional levels. Occupancy Costs will improve fro
Slide 9: Fiscal Year 2021 Outlook
9 Fiscal year 2021 Outlook The Company expects to return to positive Adjusted EBITDA and positive cash flow in fiscal 2021. *The growth in the direct business in fiscal 2020 includes an increase in sales from our DXL.com business of approximately 38.0%, partially offset by a decrease of approximatel
Slide 10: Sales; Merchandising Strategy
We expect to see a continued lift from casual active sportswear and loungewear, whereas tailored clothing will continue to struggle. We have leaned into the consumer shift to casual clothing with holiday sales penetration of 89.9% vs. 81.9% last year and tailored clothing sales penetration of 10.1%
Slide 11: Sales; Marketing Strategy
We continue to believe that our best opportunity to attract new customers and retain existing customers will be through digital and online experience, and through customer segmentation & personalization. We expect direct-to-consumer channels, led by the DXL.com website, and supported by omni-channel
Slide 12: Omni-channel customer experience
We have pivoted from thinking about channels, to focusing on the omni-channel customer experience. We have made significant investments and continue to improve our omni-channel capabilities, including increased accuracy of available store inventory on the web for ship-from-store, ship-to-store funct
Slide 13: Store Portfolio Strategy
As of January 2, 2021, we operate 311 stores. In looking out at the next two years, we have 96 stores that have either a natural lease expiration or a kick-out option. During the fourth quarter of 2020, we continued to make solid progress in our rent restructure efforts, achieving savings of approxi
Slide 14: Liquidity
In May 2020, we amended the credit facility which, among other things, increased our borrowing base availability by delaying the step-down of our advance rates and provided us the ability to enter into an aggregate of up to $15.0 million in promissory notes with merchandise vendors. The ability to b
Slide 15: Appendix A: Non-GAAP measures
The Company uses non−GAAP financial measures, such as “Adjusted EBITDA” and ”Free Cash Flow” in assessing its operating performance. The Company believes that these non−GAAP measures serve as an appropriate measure to be used in evaluating the performance of its business because it helps investors g
Slide 16: Appendix A, cont. Reconciliation of non-GAAP measures
16 Appendix A, cont. Reconciliation of non-GAAP measures: Adjusted EBITDA. We are unable to reconcile our adjusted EBITDA guidance to net loss, because certain information necessary for these reconciliations is not available without unreasonable efforts. It is difficult to predict and/or is dependen
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