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Destination XL posts loss, says new format delivered results

Destination XL Group, a Canton-based retailer that sells clothes for big and tall men, said its new store format is succeeding, even as it reported a quarterly loss of $1.6 million, versus profit of over $1.2 million a year earlier. Sales were $97.6 million, versus $100.5 million a year before.

The company is transitioning to a new store format, Destination XL, with 8,500 square feet and lots of brand merchandise. It also operates Casual Male XL, with smaller stores and fewer brand goods. At 29 DXLs open at least a year, sales were up 16.5 percent. The company expects to open 55 to 58 DXL stores in fiscal 2013. Meanwhile, it is also closing Casual Male and Rochester stores.

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The second-quarter jump in same-store sales at DXL stores is partly a result of a six-week marketing campaign, which included TV advertising as well as a mix of radio and digital marketing, the company said.

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