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Destination XL’s London Store Closure Takes Bite Out of Business

It was a tough third quarter for Destination XL Group.
On Friday, the largest men’s big and tall specialty retailer reported net losses for the period rose to $7.2 million from a net loss of $2 million in the prior year’s quarter. The company attributed the higher loss in large part to the closure of its Rochester Clothing store in London, which incurred a charge of about $1.7 million, including a non-cash expense of $800,000 in foreign currency translation adjustments and $900,000 for lease termination and inventory liquidation costs.
In the earnings call, chief financial officer Peter Stratton said: “Our London Rochester store has had declining top-line volume over the past several years. At the same time, our operating costs continue to escalate, particularly our occupancy costs. We’ve reached the decision over a year ago to close our Rochester store portfolio in 2019 and turn our focus to the DXL brand. London Rochester presented a unique challenge for us. Unlike our U.S. store portfolio, our London customer did not have a local DXL alternative to shop. Unfortunately, the four-wall economics of the store were just not sustainable. In fiscal 2018, the store’s four-wall cash flow was approximately breakeven. In fiscal 2019, we

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Via:: https://wwd.com/menswear-news/mens-retail-business/destination-xls-london-store-closure-takes-bite-out-of-business-1203376665/