Dennis Hernreich, EVP, COO and CFO of Destination XL Group, has resigned and board member John E. Kyees has been named interim CFO. In addition, the company has elected Will Mesdag, 60, to its board of directors.
Kyees, who has served on the Destination XL board of directors since 2010, was CFO of Urban Outfitters from 2003 until his retirement in 2010, and has served as a senior financial executive at several other prominent retailers. The company is conducting a search for a permanent CFO.
Mesdag's election to the Destination XL board of directors expands the size of the board to 10 members. Mesdag will serve as a director until the company's next annual meeting of stockholders, at which time he will stand for re-election. Mesdag is currently the managing partner of Red Mountain Capital Partners LLC, Destination XL Group's largest shareholder, which owns approximately 9.5% of shares outstanding.
In addition, due to a 4% reduction in store traffic between Black Friday and Christmas as a result of poor weather, as well as due to sluggish consumer behavior and a shortened holiday selling season, Destination XL is lowering its guidance for the fourth quarter and full year 2013. Sales for fiscal 2013 are expected to approximate $388 million, compared with the company's previous guidance of $395.0 million.
For the fourth quarter and fiscal year 2013, comparable sales are expected to increase approximately 3.9% and 2.9%, respectively, from the prior-year period. The increase in comparable sales for fiscal 2013 was previously expected to be approximately 5%. The company expects earnings per share for fiscal 2013 to be a net loss in the range of $(0.11) to $(0.13) per share, compared with previous guidance of a net loss of $(0.05) per share. The guidance excludes severance and post-employment benefits charges.