Good day and welcome to the Destination XL 2012 Earnings Call. As a reminder, the call is being recorded. At this time, I would like to turn the conference over to Mr. Jeff Unger. Please go ahead, sir.

Hi, good morning. Thank you, Kayla. Thank you for joining us today for Destination XL’s fourth quarter and fiscal 2012 conference call. As most of you are probably aware, in February, we officially changed the name of the company to Destination XL Group to better reflect our identity as we expand the Destination XL concept and rebrand the company. On our call today is David Levin, our President and Chief Executive Officer; and Dennis Hernreich, Executive Vice President, Chief Operating Officer and Chief Financial Officer. Dennis or David, you can begin the call.

Jeff the Safe Harbor?

I’m sorry. During today’s call, we will discuss some non-GAAP metrics to provide investors with useful information about our financial performance. Please refer to our earnings release which is filed this morning and is available on our website at investor.destinationXL.com for an explanation and reconciliation of such measures. Today’s discussion also contains certain forward-looking statements concerning the company’s operations, performance and financial condition, including sales, expenses, gross margin, capital expenditures, and earnings per share, store openings and closing and other matters, such forward-looking are subject various risk and uncertainty that could cause actual results to differ-materially from those assumptions mention today. Due to a variety of factors that affect the company information regarding risk and uncertainties are detailed with the company’s filings with the Securities and Exchange Commission. I’ll now turn the call over to David. Thank you

Thank you, Jeff, and good morning, everyone. Our financial results for the fourth quarter were essentially in line with our initial expectations. Revenue and then net income growth would have been stronger, but were negatively impacted by mild winter weather and some delays in DXL store openings. Despite those Q4 headwinds, the performance of our DXL stores and e-commerce website demonstrate the excellent potential of the DXL concept. Our DXL comparable store sales increased 15% for the fourth quarter and 15.6% for the year, and DXL stores represented 18% of our total store sales for the fourth quarter in 13.6% for the year. Our direct business is down year-over-year due to lower catalog sales. However, our e-commerce platform destinationxl.com is performing exceptionally well. Sales from the website increased approximately 13% for the fourth quarter and 11.2% for the year. Total direct sales are now approaching approximately 20% of our total company sales. With web sales growing at an accelerated rate, we’re shipping more marketing dollars to digital strategies and cutting back on our catalog circulation. On our last call, we announced that we are accelerating the opening of our DXL stores and closing all Casual MaleXL stores. We’re going to complete this transformation in the next three years. And at the end of the third year, our Casual MaleXL retail stores will no longer exists and we will have 215 to 230 DXL stores across the country. And when complete, we will have approximately 25% more square footage, but with about 150 fewer stores. Our Casual MaleXL outlet stores will remain and will be used to help liquidate product from the DXL stores, and we also plan in keeping three to four of our most profitable Rochester Clothing stores. By accelerating our DXL strategy, we’ll be able to realize the…

Thank you David and good morning everyone. In my prepared remarks, I will first provide a synopsis highlighting for you the Company’s results for the fourth quarter and the 2012 year, and give you an update on the Company’s progress on what’s still to come with respect to the transformation to the DXL concept, and lastly provide the earnings and cash flow guidance for the strategically critical 2013 year. Since the Company is going through an accelerated transformation of its business from its legacy brands to its Destination XL concept on a nation-wide basis, which started in 2012, and will continue to 2015. There is a lot to cover, but I will highlight the major points. For the fourth quarter of 2012, total sales increased to $114.9 million from $111.1 million for the prior fourth quarter. Comparable sales increased 0.5 point for the quarter and for the full year, total sales were $399.6 million compared to $395.9 million for the full year 2011. Comparable sales for the full year 2012 increased approximately 1.5%. Let me quickly define what we mean by comparable sales. Total comparable sales for all periods include retail stores that have been open for at least one full year, stores that have been remodeled, expanded or relocated during the period also are included in determining comparable sales. Most DXL stores are considered relocations and are comparable to all closed stores and each respective market area. Therefore, unless we have opened a DXL store in a new market of which we have two DXL stores like that today in brand new markets. Our DXL store is considered a comparable store. Direct businesses are included in the calculation of comparable sales since we are a multichannel retailer. With that said, sales for our retail business overall was up half…

Thank you. (Operator Instructions) And we will take our first question from Tom Filandro with SIG. Tom A. Filandro – Susquehanna Financial Group LLP: Thank you, gentlemen for that comprehensive overview, very impressive. I have four questions, I'd like to ask. First, in the test markets, where do you think that customer that you gained were shopping previously? And my second question is, so to be clear, I think you said you experienced a pickup in like new to final shoppers in those markets or is that a consumer who didn't previously shop, you’re seeing that sale brand, and then I have two follow-ups please.

Okay, the first one on the previous shopper, we haven't been able to really identify it, but again this was a customer who has been fragmented out there for his life time being a big and tall customer, he may be shopping on the Internet for a pair of pants at one retailer picking up something at the discount retailer, but we don’t really know the identity of them, but and drag, bringing that to the second question. Yeah, these are new defined customers, these are customers who are not previously sharp any of our content. Tom A. Filandro – Susquehanna Financial Group LLP: Okay, cool. The other two questions I have David. So I’m curious about when you’ve closed those CMXL stores, do you have any sense of what percentage of that business you’re currently capturing? And then Dennis, in the pro forma view of the DXL strategy, how much of that business do you believe you will retain? And then my final question is as you’ve talked about the brand awareness campaign and really focusing your efforts on the DXL brand, does it make sense to maybe just take the successful category that assures living in DT and just put it under that one umbrella, thoughts on that? Thank you.

Well, as we opened the DXL store in Casual Male markets, we’re converting a majority of our Casual Male customer. The retention of our customer base in new DXL markets where they replace Casual Male is, there’s no different than the retention rate today, any Casual Male customers. So we’re pretty much converting on a consistent basis our Casual Male customer to DXL. Of course, as you know, the major difference is that they spend like 40% more with us when they walk into a DXL store, and when they walk into a Casual Male store because of we deep and broad assortment. We believe that not only our new to file will increase, but also our retention will increase as the DXL awareness improves from its current low levels have. And so I expect where today, we have a normal retention rate of some 50%, 55% on existing customers. no matter where they shop, Casual Male or DXL. we expected that that retention percentage will increase. Tom A. Filandro – Susquehanna Financial Group LLP: Excellent, thank you.

Richard E. Jaffe – Stifel, Nicolaus & Co., Inc.: Yeah, hi guys. So we say it, Stifel. Just a quick question on DXL stores, there were 18% of the total. so we should assume about $21 million in DXL volume in the quarter. Is that a reasonable assumption?

Yes. Richard E. Jaffe – Stifel, Nicolaus & Co., Inc.: And I guess that you mentioned $45 million in tax benefits. Could you just explain, I thought that NOLs have been used up. and so I’m not sure what this might be.

Well, the NOLs have not been used up, Richard. We have on our balance sheet you’ll see. we’re filing our 10-K today, by the way. so you’ll have the access to the details. Richard E. Jaffe – Stifel, Nicolaus & Co., Inc.: Great.

But with $45 million deferred tax asset, over about half of that relates to NOLs, which we will be able to use over the next several years to offset our cash needs. Richard E. Jaffe – Stifel, Nicolaus & Co., Inc.: That’s a nice answer. And I didn’t know is there a stuff from the trial. And add expense, is that a sort of a balancing act between reducing catalogs and spending more on electronic media, when that can add us more like the wash.

So, our overall marketing spend is increasing by $10 million from like 4.5% of sales to 6.5% of sales. But reducing our catalogs help keep that to just a $10 million increase and we are finding our catalogs are just becoming less and less and less productive, Richard. Richard E. Jaffe – Stifel, Nicolaus & Co., Inc.: Sure, yeah. I think we are all into that computers now, the 21st century.

Exactly. Our customers are becoming that way as well. Richard E. Jaffe – Stifel, Nicolaus & Co., Inc.: (Inaudible) thank you.

Thank you, Richard.

And we’ll take our next question from Liz Pierce with Ascendiant Capital Markets. Liz O. Pierce – Ascendiant Capital Markets LLC: Good morning everyone.

Hi, Liz. Liz O. Pierce – Ascendiant Capital Markets LLC: David, a question for you. On the web business in general, not specifically to you, you know lot of retailer continue to add extended sizes to their business, I should quantify that maybe more on the women side. And there is so many other sites that are coming on, are you seeing that in for the men side of the business as well?

I don’t think there has been any major change in the last two or three years. I think some of the retailers will continue to add a size but we haven’t seen any new retailers specifically focused and saying now we’re in the big Intel business online. There is no new player in terms of that, other than I again I think over time as in the women’s business, size will be get added on the far end. Liz O. Pierce – Ascendiant Capital Markets LLC: Okay. So it’s mainly, it’s very, very I guess random, it’s about [toward] and then…

Yeah, it’s item driven, it’s not, you’re not going to find any type of wardrobe solution. Liz O. Pierce – Ascendiant Capital Markets LLC: Okay, okay. And then I am sorry – you mentioned that in the testing that you have done on the marketing, in the test market, did you actually reach the younger customers? If I missed that, I’m sorry.

Yeah. Yes we did. Liz O. Pierce – Ascendiant Capital Markets LLC: Is it?

The age came down, the sizes came down, and again, for 2013 he big changes, we did not necessarily have the right fit for that gentleman coming in especially on the top side of the business, and as of this month the stores are getting populated with a brand-new size that hasn't been offered in the Big and Tall market, which is more of a slimmer fit for a younger guy. Liz O. Pierce – Ascendiant Capital Markets LLC: That was my next question so pardon me, if I haven’t seen it so it’s just coming into the stores now.

Yes. Liz O. Pierce – Ascendiant Capital Markets LLC: And David will that be across the board in many different, I mean not only in your own private label, but will that, are you also going to have some branded products, or you able to work with them?

We work with all the brands, the brands are a matter of – it’s a timing issuer. We’ll have our private label brands, will be in now the brands will be coming on in the next several months as they have to make the adjustments, again this was a year project to get all the brands to sign up for this initiative, and realistically speaking the last thing brands want to do is add another size to their inventory, but they have seen the potential, we went over the numbers with them, and actually they’re pretty excited about adding the size to their assortments. Liz O. Pierce – Ascendiant Capital Markets LLC: And Dennis, it is a quick question for you, when you said that the, I think the existing Casual Male stores, there comp was negative 4.8 for the quarter.

Yeah. Liz O. Pierce – Ascendiant Capital Markets LLC: Is that right?

Yes. Liz O. Pierce – Ascendiant Capital Markets LLC: Okay. And then for the year was it up two or down two

It was down two. Liz O. Pierce – Ascendiant Capital Markets LLC: It was down two. Okay, all right so you, did that arose, and I don’t remember if you give in that kind of those two numbers through the year for us, so did they continue to widen the spread between them?

Yes, it did widen as the year progressed with. Liz O. Pierce – Ascendiant Capital Markets LLC: Okay. And then David, the original kind of stores the Chicago, Houston, Las Vegas, -- Chicago and Vegas, are those continuing to like perform above plan or have they kind of settled down?

I think we said in the – which I thought was one of our best statements… Liz O. Pierce – Ascendiant Capital Markets LLC: (Inaudible)

Yeah, these stores that have all anniversary, that comprehend their own, I believe we are up 7% comp in the fourth quarter. So that’s very encouraging for us, but now those stores are continuing to perform and again that’s with zero marketing dollars behind the initiative. Liz O. Pierce – Ascendiant Capital Markets LLC: I guess I was wondering specifically about Chicago and Vegas since they are from what I thought are going to be – they are larger than the kind of go forward?

Well, specifically to my best recollection, Las Vegas was definitely one of the higher ones and Chicago was probably in the lower quartile in terms of the spectrum of the stores. Liz O. Pierce – Ascendiant Capital Markets LLC: Okay, great. Thanks and best of luck.

Thank you.

We will take our next question from Tom Filandro with SIG. Thomas Filandro – SIG: Hi guys, I just wanted to circle back on an other question I had asked about the awareness focus on DXL and what was your thoughts on – in terms of shoes, living and DT and also from one end, in addition any meaningful new brand introduction this year 2013? Thank you.

As far as the new brands, we’re working on one for the third quarter, but we are not ready to announce that yet. We had a big rollout of Tommy Hilfiger, we did it in a limited number of stores in the fourth quarter and again with a limited collection and for spring, it will be an all DXL stores in a full spread of assortment between casual dress and accessories. Dennis?

Time overtime, shoes of course there is other customer base that have wider feet than have the need and should have access to ShoesXL.com. And so that service is obviously our main customer base, but there is another segment that it appeals to. Thomas Filandro – SIG: Okay.

As to living and I mean over time, again Living is the same way of shoes, there is a segment of a customer base regardless that we have a lot of female shoppers, LivingXL. And so it’s not a main thrust of a brandish no for us, but it does service a need, and but certainly BT Casual Male, Rochester over time has the customers absorb and embrace DXL, you’ll see those get absorbed by DXL over time. We’re letting the customers tell us sort of... Thomas Filandro – SIG: Okay.

When to do that. Thomas Filandro – SIG: Excellent, thank you very much. Best of luck.

Thank you.

And we’ll take our next question from Bernard Sosnick with Gilford Securities. Bernard Sosnick – Gilford Securities: Good morning. Could you give us an idea of the pace of openings for DXL during the year?

It pace although perhaps, not dictated by us as we would have like, but it’s going to be something in the range of 20 stores in the first half and 40 stores in the second half. Bernard Sosnick – Gilford Securities: Okay. So it’s going to be latter schedule of openings, not quite as heavily skewed to the fourth quarter, but somewhat later than you would have wished as what I got, what you are saying?

In the second half, it is somewhat skewed to the fourth quarter as well Bernie. Bernard Sosnick – Gilford Securities: Okay. And how many, you should already know how many will open in the first quarter?

Yeah. Bernard Sosnick – Gilford Securities: What’s expected?

We’ll have around five to seven openings in the first quarter, and almost 15 in the second quarter. Bernard Sosnick – Gilford Securities: Okay. Now quite a number of retailers have experienced a let down in business in late January or early February, could you give us an idea of what your experience was during that period?

I think we pretty much followed the trend of what was going on out there. Again from our perspective, the weather flip side as it becomes – colder weather becomes a determent as we start to hit those months. And it was very mild a year ago and while our categories like sweaters are quite good. That’s in significant to us at this point in time. We really want to start selling the new spring product. But I’d say we’re probably generally consistent with everybody else. Bernard Sosnick – Gilford Securities: Okay. Does that mean running behind your expectations as you were in the fourth quarter?

No. I mean we're not, Bernie – it’s too early to put that. I mean everything that we know about the business today is incorporated in the guidance I gave you today. Bernard Sosnick – Gilford Securities: Okay. And with respect to the closing pace; does that pretty much match up with what you said for the opening pace?

Yeah, it's very similar. Almost all of the closings; I think Casual Male XL are somewhat tied to the openings of the DXL stores. Bernard Sosnick – Gilford Securities: And finally there seems to be a change in your expectations regarding the use of debt versus what you were thinking about just several months ago. What is the main factor for that?

Primarily, the amount of spend that we’d anticipate requiring for marketing, I think is one of the major. The second piece of course is we missed the numbers slightly from what we – we came in with less cash coming into the year than we expected, but the other primary factor is the investment that we feel we have to make in the marketing side. Bernard Sosnick – Gilford Securities: Well thank you very much. It’s been a very thorough conversation so far. Appreciate it.

Thank you, Bernie.

And we'll take our next question from Richard Jaffe with Stifel. Richard E. Jaffe – Stifel, Nicolaus & Co., Inc.: Hi, guys and I think Bernie touched on this question I was coming back forward which is just in the current trend, the particularly cold weather January and February which has hampered most retailers; wondering if you guys had seen similar pressure; if you want to comment on that? And I guess on the other side of the things, your inventory looks particularly lean and clean, which is certainly very good news going into spring in terms of markdowns. But given the cold weather in January, was there a missed opportunity not having that clearance volume or clearance winter product?

We don’t think we missed any opportunities, Richard. But we are proud of the inventory position that we’re in, it is clean. We saw that in our gross margins in the fourth quarter and we feel very, very confident with the gross margin expectations in 2013. And we plan on keeping the inventories in that same lean and mean position throughout the year. Richard E. Jaffe – Stifel, Nicolaus & Co., Inc.: Okay. And just a quick question on occupancy leverage, obviously with the comp, I would have expected more leverage. But it was offset by the increase in rents at some of the new stores, is that the way we should think about it?

Yeah, exactly. Richard E. Jaffe – Stifel, Nicolaus & Co., Inc.: Okay. Great, thank you.

It appears there are no more questions at this time.

Okay, one second please; Dennis spoke when he was talking about CapEx, for 2013, it’s $45 million. He had said, for 2016, it was $35 million. I just want to correct that.

Oh, thank you, Jeff.

Okay. Anyway, thank you all for being in the call. I would like to invite – end by inviting all of you to visit one of our DXL stores because it is hard to grasp the opportunity we have with DXL stores until you’ve been in the store and can see for yourself what we offer our customers with this new concept. And if interested, please give us a call if you would like to enquire out at any location or like a tour of the store and we look forward to speaking with you next quarter. Thank you.

And this concludes today’s conference. Thank you for participation.