Destination XL Group
The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Destination XL Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share dropped significantly.
Gross margins grew, operating margins increased, net margins shrank.
Destination XL Group booked revenue of $114.9 million. The two analysts polled by S&P Capital IQ predicted revenue of $115.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The one earnings estimate compiled by S&P Capital IQ forecast $0.08 per share. GAAP EPS of $0.09 for Q4 were 87% lower than the prior-year quarter's $0.70 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.5%, 280 basis points better than the prior-year quarter. Operating margin was 6.1%, 20 basis points better than the prior-year quarter. Net margin was 3.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $100.0 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $425.5 million.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 73 members out of 102 rating the stock outperform, and 29 members rating it underperform. Among 29 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Destination XL Group a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Destination XL Group is outperform, with an average price target of $8.00.
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