Pic: Destination XL
The gross margin rate for Q4 FY24, inclusive of occupancy costs, was 48.2 per cent, slightly lower than the 48.6 per cent gross margin rate reported in the same period last year. Selling, general, and administrative expenses as a percentage of sales increased to 41.1 per cent, up from 38.5 per cent in the first quarter of fiscal 2023, the company said in a press release.
Net income for the first quarter of fiscal 2024 was $3.8 million, or $0.06 per diluted share, compared to net income of $7 million, or $0.11 per diluted share, in the first quarter of fiscal 2023. Adjusted EBITDA, a non-GAAP measure, was $8.2 million for the first quarter, down from $12.6 million in the same period last year.
“We expected fiscal 2024 to be challenging, but our first quarter sales results were disappointing. Our guidance for fiscal 2024 assumed an improvement in first quarter sales; however, the macroeconomic pressures we observed in the second half of fiscal 2023 persisted, continuing to negatively impact store traffic and online conversion. Despite the difficult environment, our regimented operating process, structure and discipline helped us to deliver gross margins, inventory levels and operating expenses that were better than expected,” said Harvey Kanter, president and chief executive officer.
Fibre2Fashion News Desk (DP)