8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 9, 2014

DESTINATION XL GROUP, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	01-34219	04-2623104
(State or Other Jurisdiction	(Commission	(I.R.S. Employer
of Incorporation)	File Number)	Identification No.)

555 Turnpike Street, Canton, Massachusetts	02021
(Address of Principal Executive Offices)	(Zip Code)

(781) 828-9300

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 -Regulation FD Disclosure

The Company will be presenting a slide presentation to various investment groups at upcoming investor conferences beginning September 9, 2014. A copy of the slides is attached to this report as Exhibit 99.1 and is incorporated by reference herein.

One of the slides includes financial information not prepared in accordance with generally accepted accounting principles (“Non-GAAP Financial Measures”). The Company believes that the non-GAAP measures are useful as an additional means for investors to evaluate the Company’s operating results, when reviewed in conjunction with the Company’s GAAP financial statements. A reconciliation of the Non-GAAP Financial Measures to financial information prepared in accordance with generally accepted accounting principles (“GAAP”), as required by Regulation G, is included as Appendix A to the investor presentation.

The full slide presentation is available on the investor relations page of the Company’s website at www.destinationxl.com.

The slides contained in the exhibit include statements intended as “forward-looking statements,” which are subject to the cautionary statement about forward-looking statements set forth in the exhibit. The additional slides are being furnished, not filed, pursuant to Regulation FD. Accordingly, the slides will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of these slides is not intended to, and does not, constitute a determination or admission by the Company that the information in the slide presentation is material or complete, or that investors should consider this information before making an investment decision with respect to the Company.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99.1	Investor Presentation dated September 2014.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DESTINATION XL GROUP, INC.
Date: September 9, 2014	By:	/s/ Robert S. Molloy
	Name:	Robert S. Molloy
	Title:	Senior Vice President, General Counsel and Secretary

EX-99.1

September 2014

Investor Presentation

Exhibit 99.1

Destination XL Group, Inc.

Destination XL Group, Inc.

FORWARD LOOKING STATEMENTS AND NON-GAAP MEASURES

Forward Looking Statements:

Certain information contained in this presentation, including, but not limited to, future store projections of sales per square foot,

gross margin, occupancy and selling, general administrative expenses as well four-wall cash flow, constitute forward-looking

statements under the federal securities laws. The discussion of forward-looking information requires management of the

Company to make certain estimates and assumptions regarding the Company's strategic direction and the effect of such plans

on the Company's financial results. Such forward-looking statements are subject to various risks and uncertainties that could

cause actual results to differ materially from those indicated. Such risks and uncertainties may include, but are not limited to: the

failure to implement the Company's business plan for increased profitability and growth in the Company's retail stores sales and

direct-to-consumer business, the failure to achieve improvement in the Company's competitive position, changes in or

miscalculation of fashion trends, extreme or unseasonable weather conditions, economic downturns, a weakness in overall

consumer demand, trade and security restrictions and political or financial instability in countries where goods are manufactured,

increases in raw material costs from inflation and other factors, the interruption of merchandise flow from the Company's

distribution

facility,

competitive

pressures,

and

the

adverse

effects

of

natural

disasters,

war,

acts

of

terrorism

or

threats

of

either,

or other armed conflict, on the United States and international economies. These, and other risks and uncertainties, are detailed

in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended

February 1, 2014 filed on March 17, 2014 and other Company filings with the Securities and Exchange Commission. The

Company assumes no duty to update or revise its forward-looking statements even if experience or future changes make it clear

that

any

projected

results

expressed

or

implied

therein

will

not

be

realized.

Non-GAAP Measures:

Adjusted Net Loss, Adjusted Net Loss Per Diluted Share, EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA

Margin are non-GAAP measures. The Company believes that these non-GAAP measures are useful as additional means for

investors to evaluate the Company's operating results, when reviewed in conjunction with the Company's GAAP financial

statements. Please see Appendix A for additional information concerning these non-GAAP measures and a reconciliation to

their respective GAAP measures.

2

3

LARGEST MEN’S B&T SPECIALTY RETAILER

354

Total stores

80% -

85%

Retail sales

15% -

20%

Direct sales

15

Private label brands

40

Name brands

20

Exclusive brands

40 million

Addressable market

1.4 million

Active customers

90%

Enrolled in

loyalty program

Destination XL Group, Inc.

UNIQUE CUSTOMER

Not determined by demographic

Males of all ages with a waist

size 40”

and greater

Values convenience, comfort,

selection and fit over price

Desires a good, better, best

array of product assortments in

all primary lifestyles

4

Destination XL Group, Inc.

TRANSFORMING OUR BRAND

5

Began transformation to DXL brand in 2010 to provide customers

with a one-stop shopping destination and grow the business

Capture greater wallet share

Attract broader customer audience

Opportunity for Growth

Target end-of-rack

1

customers

Leverage website to drive sales

1

Waist sizes 40 to 46 inches

Destination XL Group, Inc.

ONE-STOP SHOPPING AT ITS BEST

6

More

brands

Bright

Atmosphere

Wide

aisles

Highly

Trained

Staff

Onsite

tailoring

Large

changing

rooms

Destination XL Group, Inc.

LARGE SELECTION OF NAME BRANDS

10

Destination XL Group, Inc.

COMPLETE DXL STORE ROLL-OUT IN 2017

11

Majority of store openings are timed prior to the holiday shopping

season to maximize profitability

August 2, 2014

2017 Estimate

DXL Stores

Casual Male XL Retail

CM Outlet Stores

Rochester Clothing

Additional Stores

Open ~40/year

Close ~40/year

Destination XL Group, Inc.

181

113

51

9

220

250

50

50

3

SQUARE FOOTAGE COMPOSITION

12

DXL Stores

Casual Male XL Retail

CM Outlet Stores

Rochester Clothing

Additional Stores

DXL stores will account for the majority of square footage by end of fiscal 2017

Total square footage to increase 10% to 25% by end of fiscal 2017

August 2, 2014

2017 Estimate

DXL Stores

Casual Male XL Retail

CM Outlet Stores

Rochester Clothing

Sq. Ft. (000’s)

1,893 sq. ft.

~2,095 –

2,395 sq. ft.

Destination XL Group, Inc.

1,700 –

2,000

~200

~155

~40

1,003

643

164

83

Destination XL Group, Inc.

DXL

Year 1

DXL

Year 2

DXL

Year 3

DXL

Year 4

DXL

Year 5

Sales per square foot

$150

$170

$190

$205

$220

Gross margin, net of

occupancy costs

42.0%

44.0%

45.0%

46.0%

47.0%

SG&A as a % of sales

26.0%

22.0%

21.0%

21.0%

20.0%

Four-wall cash flow

16.0%

22.0%

24.0%

25.0%

27.0%

Build out costs

$75

IMPROVED PROFITABILITY AT MATURITY

13

1

Average store results

2

Average store pro forma

1

2

1

1

2

Destination XL Group, Inc.

DXL 5K STORES DRIVE PROFITABILITY

14

Introduced 5,000 square foot store concept in Q2 2014, which increased

opportunity for continued store growth by ~50 more stores

Lowers cap ex and occupancy costs by 25%

as compared to a 7,000 sq. ft. store

Penetrate smaller markets, where the economics of a full-size DXL would not work,

and certain larger markets that warrant an additional presence due to geographical

considerations

Economics of a 5,000 square foot DXL in year one in a sample market with expected

annual sales of ~$800K:

Sales per square foot

$160

Gross margin, net of occupancy costs

45.5%

SG&A as a % of sales

30.5%

Four-wall cash flow

15.0%

Build out costs

$80

Destination XL Group, Inc.

Per Square Foot

Average Sq. Ft.

Year One

Sales

Year One

4-Wall Cash Flow

ROI

2010 –

2012 (48 stores)

9,590

$151

$22

30.0%

2013 (51 stores)

8,441

$145

$25

38.0%

2014 (40 stores)

7,428

$153

$26

42.0%

INCREASING RETURN ON INVESTMENT

15

1

Average store results 

2

ROI is defined as the internal rate of return calculated on a store four-wall basis over 5 years

1

1

1

1,2

Achieving stronger return on investment in first year with smaller store sizes

Destination XL Group, Inc.

SUCCESSFUL DXL MARKETING CAMPAIGNS

16

You’re Looking Good

Since first flight launched (Q2 2014 vs. Q2 2013):

+6.5%

Traffic

+13.1%

Transactions

+6.2%

Retail Conversion

+5.6%

Web Conversion

+7.6%

End-of-Rack

+11.0%

Customer Count

Destination XL Group, Inc.

Experience Book & $50 Gift Card

35% Response Rate

Free Polo Offer

22% Response Rate

DRIVING TRAFFIC TO DXL STORES

17

+65%

+26%

More customers in an average DXL store’s active database

than at the average Casual Male XL store

Higher retention rate at an average DXL store compared with

an average Casual Male XL store

Destination XL Group, Inc.

CONVERTING THE CASUAL MALE CUSTOMER

Begin promoting new DXL store at ambassador Casual Male XL

stores 6 months prior to closing

18

Extending leases at certain Casual Male XL locations

Greater conversion rate of Casual Male XL

customers in Spring 2014 than Spring 2013

+24%

Destination XL Group, Inc.

FALL 2014 MARKETING CAMPAIGN

19

Commence campaign two weeks later than prior year

Will run from mid-October through mid-December

Aligned with peak holiday selling season and targeting gift givers

Greater quality of program for ad placement (NFL, ESPN, Prime Time)

Increased media presence for Thanksgiving week to mid-December

Implement a “lead into the weekend”

strategy

Destination XL Group, Inc.

GREATER PRESENCE IN METRO MARKETS

20

Customers typically

willing to drive up to 20

miles to shop at DXL

Chicago metro market

large enough for

multiple full-sized and

5K DXL stores

Prior to conversion,

there were 19 Casual

Male XL stores that

serviced this market

Full size DXL

5K DXL

Future DXL

Destination XL Group, Inc.

IMPRESSIVE DOUBLE-DIGIT COMP SALES

21

(11 stores)

(16 stores)           (23 stores)           (29 stores)      

(36 stores)           (48 stores)          (52 stores)     

(61 stores)

1

Spring marketing campaign ran from 5/5/13 to 6/14/13

2

Fall marketing campaign ran from 9/28/13 to 11/23/13

3

Spring marketing campaign ran from 4/27/14 to 6/14/14

1

2

5 quarters of double-digit comp sales increases

3

1

(2.7)%

5.9%

4.7%

16.5%

11.3%

13.6%

12.8%

11.3%

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

IMPROVING DIRECT BUSINESS

22

Eliminated catalog

circulation in May 2013

Improved website

functionality

Omnichannel retailer

•Ship to store

•Preferred delivery

•Store inventory available online

•Free shipping on orders above $100

•Mobile coming soon

Increased digital display

marketing

Stronger promotional

cadence

Destination XL Group, Inc.

Destination XL Group, Inc.

FINANCIAL PERFORMANCE

Destination XL Group, Inc.

Q2 2014 SALES HIGHLIGHTS

Total sales (Retail and Direct)

Comparable sales (all stores)

DXL comparable store sales

Casual Male XL and Rochester Clothing stores

24

+5.8%

+7.0%

+11.3%

+7.1%

Destination XL Group, Inc.

Destination XL Group, Inc.

25

SALES AND GROSS MARGINS

Strong gross margins provide opportunity for significant sales leverage

$192.2

$195.8

$196.0

$192.0

$200.5

$392.0

$395.9

$399.7

$388.0

45.9%

46.3%

46.5%

46.0%

45.6%

2010

2011

2012

2013

2014 YTD

($MM)

Sales Q1 & Q2

Total Annual Sales

Gross Margin

Destination XL Group, Inc.

26

EBITDA & EBITDA MARGIN

1

EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin are non-GAAP measures. The above Adjusted EBITDA

for fiscal 2011 excludes a trademark impairment charge of $23.1 million. For additional information about these non-GAAP

measures, including a reconciliation to their respective GAAP measures, see Appendix A attached to this presentation.

1

1

$31.4

$31.2

$29.4

$7.7

$4.5

8.0%

7.9%

7.4%

2.2%

2010

2011

2012

2013

2014 YTD

($MM)

EBITDA

EBITDA as a Percentage of Sales

2.0%

Destination XL Group, Inc.

OPERATING MARGIN & COMPARABLE SALES

Focus on improving operating margins through greater DXL sales

(continuing operations)

Total DXLG Comp Sales

27

Total DXLG Operating Margin

1

Before impairment charge of $23.1 million

4.6%

4.7%

3.5%

(3.4)%

(3.3)%

2010

2011

2012

2013

2014 YTD

1.5%

2.1%

1.5%

3.0%

5.2%

2010

2011

2012

2013

2014 YTD

Destination XL Group, Inc.

Destination XL Group, Inc.

28

INCREASING SG&A WITH DXL ROLL-OUT

$19.0

$19.6

$18.5

$27.8

$14.3

$148.4

$152.0

$156.4

$170.7

$86.8

37.9%

38.4%

39.1%

44.0%

43.3%

2010

2011

2012

2013

2014 YTD

Marketing Expense

Total SG&A

SG&A as a Percentage of Sales

($MM)

Destination XL Group, Inc.

29

SOLID BALANCE SHEET

2010

2011

2012

2013

Q2

2014

Inventory

$92.9

$104.2

$104.2

$105.6

$116.0

Net borrowings under revolver

$0

$0

$0

$9.0

$25.7

Cash on hand

$4.1

$10.4

$8.2

$4.5

$5.6

Fixed term loan

$0

$0

$0

$16.7

$22.6

($MM)

Unused excess availability under credit facility

at August

2, 2014 was $71.0 million

Destination XL Group, Inc.

30

CASH FLOW & CAPITAL EXPENDITURES

1

1

Before tenant allowances

$18.7

$23.4

$29.9

$24.9

$(2.7)

$9.0

$18.0

$32.4

$54.1

$18.9

2010

2011

2012

2013

2014 YTD

($MM)

Cash Flow from Operating Activities

CAPEX

Destination XL Group, Inc.

31

DXLG INVESTMENT HIGHLIGHTS

Transformation to DXL concept creates compelling

investment opportunity

Significant market share/sales growth opportunity

Strong gross margins

Ability to significantly improve operating margins

Solid balance sheet with borrowing capacity

Destination XL Group, Inc.

NON-GAAP RECONCILIATION

•

In addition to Operating Income (Loss) determined in accordance with United States Generally Accepted Accounting Principles (GAAP), the Company uses

certain non-GAAP financial measures, such as “EBITDA,”

“Adjusted  EBITDA,”EBITDA  Margin”

and “Adjusted EBITDA Margin”

in assessing its operating

performance. The Company believes that these non-GAAP measures serve as appropriate measures to be used in evaluating the performance of its

business.

•

The Company defines EBITDA as Operating Income (Loss) before Depreciation and Amortization.  In addition, Adjusted EBITDA for fiscal 2011 excludes

the impact of a non-recurring trademark impairment charge.  The Company defines EBITDA Margin and Adjusted EBITDA  Margin as EBITDA or Adjusted

EBITDA divided by Sales. 

•

EBITDA and Adjusted EBITDA as defined by the Company may not be comparable to similarly titled measures reported by other companies. The Company

does not intend for non-GAAP financial measures to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.

•

The following table provides a reconciliation of Operating Income (Loss), on a GAAP basis, to  EBITDA and Adjusted EBITDA, on a non-GAAP basis (in

millions, except percentages)

Fiscal year:

2010

2011

2012

2013

2014

YTD

Sales

$  392.0

$  395.9

$   399.6

$   388.0

$   200.5

Operating Income (Loss), GAAP Basis

$    18.2

$    (4.4)

$     13.9

$  (13.1)

$   (6.6)

Add back:

Depreciation and Amortization

$    13.2

$   12.5

$      15.5

$   20.8

$   11.1

EBITDA

$    31.4

$     8.1

$       29.4

$     7.7

$   4.5

Adjustment for Trademark Impairment

-

$    23.1

-

-

-

ADJUSTED EBITDA

-

$    31.2

-

-

-

EBITDA MARGIN

8.0%

2.0%

7.4%

2.0%

2.2%

ADJUSTED EBITDA MARGIN

7.9%

Appendix A

Destination XL Group, Inc.

INVESTOR CONTACT

Jeffrey Unger

V. P. Investor Relations

Destination XL Group, Inc.

jeffunger@usa.net

561-482-9715 (o)

561-543-9806 (c)

www.DestinationXL.com

33