Benzinga | Jan 10, 2022 02:24PM EST

Destination XL Tightens FY21 Sales Outlook Citing COVID-19 Resurgence

* Destination XL Group Inc (NASDAQ:DXLG) reported $106.6 million in sales for the 9-week holiday sales period ended January 1, 2022, versus $78.4 million last year.

* Comparable sales in the company's omni-channel retail business for the 9-week holiday period increased 11.4% compared to FY19.

* The company has lowered its FY21 sales guidance to $500 million - $505 million (previous view $500.0 million - $510.0 million), below the consensus of $508.05 million.

* Destination XL increased EPS outlook to $0.80 - $0.85 from the previous forecast of $0.72 - $0.80, above the consensus of $0.73.

* "With the resurgence of COVID-19 infections from the Omicron variant, we are experiencing a softening of sales which we attribute to growing public concern which we have reflected in our updated guidance," said CEO Harvey Kanter.

* "Supply chain disruptions still exist, however, they continue to slowly improve and we are continually monitoring and pivoting to ensure we have a better flow of inventory to meet our sales expectations," Kanter added.

* The company plans to report its actual Q4 and FY21 financial results on March 17, 2022.

* Price Action: DXLG shares are trading higher by 1.37% at $5.54 on the last check Monday.