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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.