Destination XL Group announced that its Board of Directors has appointed Harvey Kanter as the company's new President and CEO and a member of its Board. Kanter joined the company as an employee on February 19 and, in order to ensure a smooth and orderly transition, will serve as Advisor to the Acting CEO until April 1, when he will succeed David Levin, the company's Acting CEO, and assume the full responsibilities of the President & CEO of the company and become a member of its Board. Kanter brings a proven track record in leading executive teams, driving strategy, growing profitability and creating shareholder value for consumer-centric experiential brands. He was most recently the President, CEO and Chairman of the Board of Blue Nile.
Destination XL Group announced that total sales for the 9-weeks ended January 5 increased 1.4% to $102.7M as compared to $101.3M for the 9-weeks ended December 30, 2017. Comparable sales increased 3.6% for the 9-weeks ended January 5, compared to the 9-weeks ended January 6, 2018. The increase in comparable sales was partially offset by a decrease of $1.6M from the shift in calendar weeks due to the 53rd week in FY17. Based on the holiday sales results and expectations for the remainder of the Q4, the Company is reiterating its full-year guidance as previously disclosed.
On September 11, Krevlin sent a letter to the board of Destination XL. In the letter, Krevlin indicated his interest in joining the board of the company and his concern with respect to the search for a new CEO of the company. The letter said in part: "I have previously expressed an interest in joining the Board of Directors of the Company in June of this year, and subsequently had conversations with Will Mesdag, who was open to the idea along with two other members of the board - John Kyees and Mitchell Presser. I am writing today to affirm my interest in joining the Board of Directors and would like to establish a timetable to discuss my qualifications with the Board of Directors."
Destination XL price target raised to $4 from $3.50 at Lake Street. Lake Street analyst Chris Krueger raised his price target for Destination XL to $4.00 citing the company's "strong" Q2 results. Destination XL expects continued positive same-store sales this year after posting a 3.3% increase for Q2, Krueger tells investors in a post-earnings research note. Further, he notes that with a reduction in store growth, the company's balance sheet is improving. The analyst believes its cash flows can fund expansion plans without taking on more debt or raising equity. Krueger raised his estimates and keeps a Buy rating on the shares.