David Levin to Retire as DXL Chief as Losses Grow
He will stay on through the end of the fiscal year as the big and tall retailer searches for a successor.
David Levin, the longtime president and chief executive officer of Destination XL Group Inc., will retire by the end of this year.
Heidrick & Struggles has been retained to search for a successor to helm the country’s largest big and tall men’s retailer. Candidates from within and outside the company will be considered. Levin, 66, has said he will be available to provide support during the transition period.
The company made the announcement at the same time it reported a fourth-quarter net loss of $3.3 million, compared to net income of $1.8 million in the same period last year, despite a sales increase of 9.5 percent to $135.5 million. On a non-GAAP basis, adjusted earnings before income, taxes, depreciation and amortization fell to $5 million from $10.8 million.
For the fiscal year, the company’s net loss grew to $18.8 million from a loss of $2.3 million a year ago, on a sales increase of 3.7 percent to $468 million. Adjusted EBITDA for the year fell to $17.1 million from $31.6 million.
Comparable-store sales increased 4.3 percent in the quarter and only 0.9 percent for the year.
The company’s stock fell 19.5 percent in morning trading to $1.85, the second-lowest rate in its history.