The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Michael Baker - D. A. Davidson & Co. - Analyst
: Hopefully, you can hear me. So first, I just want to start with the short-term question. I'm intrigued by the implied fourth quarter guidance, you
said, down mid-single digits for the comp understanding that it's a tougher comparison, but still that would be a nice improvement. Is that indicative
of what you're seeing a couple of weeks into the quarter? It's gotten a little bit colder, as you said, elections over. Are you starting to see trends get
better into that range?
Question: Michael Baker - D. A. Davidson & Co. - Analyst
: Yes, sure. Fair enough. And just to follow up on that. So a little bit more promotional. Presumably; a, that's embedded in your guidance, just confirm
that. But also, does this -- I was intrigued by that comment about the national brands being a little bit more competitive on their own website. So
is this in response to that, you said you are getting a little bit more promotional because of that. So if you could just talk about that dynamic, how
that relationship with the national brands work. Do they help you at all if they're going to get more promotional? Does that become adversarial?
I'm just intrigued by that whole dynamic.
Question: Michael Baker - D. A. Davidson & Co. - Analyst
: Yes. Fair enough. Makes sense. If I could ask one more. Just can you share -- the comment that you think this is -- so clearly, you think this is
industry-wide, not a share issue. In fact, I think you said you think you're gaining share. What data or evidence do you have on that?
Maybe a little bit of a concern that you could be losing share to more lower-end offerings because you did acknowledge that, that is the part of
your business that's doing well. So another competitors who are more entry level, more private label, et cetera, you don't think you're losing share
to those guys though.
Question: Jeremy Hamblin - Craig-Hallum Capital Group LLC - Analyst
: I'm on for Jeremy this morning, but -- so this is the second quarter now. I know we've seen this price-sensitive consumer trading down to the mid-
and entry-level price points versus those more upscale brands. I guess I'm wondering how the product margin for the lower price point and private
label brands compared to that of the upscale names, maybe like Polo or the Vineyard Vines. And then if you're planning on shifting any of the
assortment mix to maybe capture more of this consumer shift?
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NOVEMBER 22, 2024 / 2:00PM, DXLG.OQ - Q3 2024 Destination XL Group Inc Earnings Call
Question: Jeremy Hamblin - Craig-Hallum Capital Group LLC - Analyst
: Great. And then kind of a follow-up here. I believe last quarter, you had noted a DXL brand awareness figure around 7% or 8%. And I know in the
prepared remarks, you had mentioned web traffic was looking healthy. I guess I'm curious if you had an updated awareness figure for the third
quarter. And then if you had any results from the Q2 ad campaign that were quantifiable at this point?
Question: Jeremy Hamblin - Craig-Hallum Capital Group LLC - Analyst
: I'll certainly be on the lookout for that. And then just lastly here, noting the SG&A improvement on a dollar basis in the quarter, kind of looking
towards Q4, are you expecting to extend any of the store hours, maybe capture some of the more of the holiday shopping in the back half of Q4.
Question: Jeremy Hamblin - Craig-Hallum Capital Group LLC - Analyst
: Great. Thanks for all the color.
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