Destination XL Group, Inc. Q1 FY2025 earnings call

• Comp sales declined 9.4% in Q1 2025, improving from mid-March projections. February comp sales were down 13.9%, March down 8.2%, and April down 7.2%.
• Tariff impact is estimated to add less than $2 million or ~40 basis points to costs if current policies hold. Private label imports are sourced mainly from Vietnam, Bangladesh, and India.
• Initiatives include Heroes Discount (benefiting active military, first responders, teachers, veterans), Fit Exchange by DXL (customers donate unfitted clothing for 20% discount, with positive results), and a new loyalty program with early membership acquisition ahead of forecast.
• Commerce operation replatform from ATG to commercetools completed, with focus on enhancing site experience. Opened 2 new stores in past quarter, with 4 more expected later in 2025.
• FitMAP technology used in 52 stores, with plan to reach 85 by end 2025 and 200 by end 2027; over 20,000 guests scanned so far.

Comp store sales for the first quarter were down 6.6%, while direct sales were down 16.2%. The sales penetration for private label brands shifted, with private brands accounting for 57% of sales in Q1 2025 compared to 55% in Q1 2024. Private label brands offer more control over pricing and supply chain, and typically earn higher margins.

• Comparable sales expected to gradually improve, with a single digit negative in Q2 and positive in H2 2025.
• Expect to open 4 more stores in 2025, pausing new store openings later to stabilize core business.
• FitMAP technology aim to expand to 85 stores by end 2025 and 200 by end 2027.

• Tariff volatility and potential policy changes could impact costs.
• Low brand awareness for new stores poses challenges in ramping traffic.
• Macroeconomic challenges and consumer spending pullback continue to affect sales.

Q: No additional questions in the queue as per operator instructions A: Operator indicates no more questions and prepares for closing remarks