Destination XL (DXLG) AI Stock Analysis

• Market Cap: $50.80M
• Dividend Yield: N/A
• Average Volume (3M): 253.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -8.83%
• EPS Growth: -186.80%
• Country: US
• Employees: 1,447
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.11
• Shares Outstanding: 54,656,414
• 10 Day Avg. Volume: 621,562
• 30 Day Avg. Volume: 253,845
• PEG Ratio: -0.57
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 83.03
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 6.57
• 1Y Price Target: $1.30
• Price Target Upside: 39.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.11
• Revenue Forecast (FY): $442.62M

• Rating: 51 Neutral
• Price Target: $1.00 ▲(7.53% Upside)

Destination XL's overall stock score reflects significant financial challenges, with declining revenue and profitability being the most critical factors. The strategic merger with FullBeauty provides a positive outlook, offering potential synergies and enhanced financial strength. Technical indicators show mixed signals, and the valuation remains unattractive due to negative earnings. The merger's potential benefits are a key positive factor, but financial and operational improvements are needed to enhance the stock's attractiveness.

Positive Factors

Strategic Merger

The merger with FullBeauty is expected to create a leading retailer in inclusive apparel, generating $25 million in annual cost synergies and enhancing financial flexibility, which positions the company for long-term growth and shareholder value.

Market Position

The merger will enhance DXL's market position by creating a scaled retailer with approximately $1.2 billion in net sales, improving its ability to compete and expand in the inclusive apparel sector.

Innovation and Customer Experience

Leveraging data science and fit technology will enhance product quality and customer experience, driving customer loyalty and long-term growth in the underserved big and tall market.

Negative Factors

Revenue Decline

The decline in net sales and comparable sales indicates challenges in maintaining revenue growth, which could impact the company's ability to sustain its market position and financial health.

Profitability Challenges

The EBITDA loss reflects operational inefficiencies and profitability challenges, which could strain financial resources and hinder the company's ability to invest in growth initiatives.

Gross Margin Decline

The decline in gross margin due to deleverage on occupancy costs and promotional offers suggests pressure on pricing power and cost management, potentially affecting long-term profitability.

Destination XL Business Overview & Revenue Model

Company Description

Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men's clothing and shoes in the United States and Canada. Its stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual slacks, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing. It also provides tailored-related separates, blazers, dress slacks, dress shirts, and neckwear; and vintage-screen T-shirts and wovens under various private labels. The company offers its products under the trade names of Destination XL, DXL, DXL Men's Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. As of January 29, 2022, it operated 220 DXL retail stores, 16 DXL outlet stores, 35 Casual Male XL retail stores, and 19 Casual Male XL outlet stores; an e-commerce site, dxl.com; a mobile site, m.destinationXL.com; and mobile app. The company was formerly known as Casual Male Retail Group, Inc. and changed its name to Destination XL Group, Inc. in February 2013. Destination XL Group, Inc. was incorporated in 1976 and is headquartered in Canton, Massachusetts.

How the Company Makes Money

Destination XL makes money primarily through the sale of apparel and accessories in its retail stores and online. The company generates revenue from direct sales of its proprietary brands and a selection of third-party brands, catering specifically to the needs of big and tall customers. Key revenue streams include in-store sales, e-commerce sales, and potential private label partnerships. Additionally, DXLG benefits from customer loyalty programs and promotions that drive repeat business. The company has also made strategic partnerships with brands that align with its target demographic, enhancing its product offerings and market reach.

Destination XL Financial Statement Overview

Summary

Destination XL faces financial challenges with declining revenue and profitability, as well as cash flow constraints. The balance sheet shows moderate leverage, but the negative return on equity and declining equity are concerns. The company must address these issues to stabilize and improve its financial health.

Income Statement

Destination XL's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative net profit margin and EBIT margin, reflecting operational challenges. While there was a positive revenue growth in 2023, the recent TTM period shows a contraction. The gross profit margin remains relatively stable, but the negative net income and EBIT suggest profitability issues.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio in the TTM period, indicating manageable leverage compared to previous years. However, the return on equity is negative, highlighting inefficiencies in generating returns for shareholders. The equity ratio suggests a reasonable proportion of equity financing, but the declining stockholders' equity over time is a concern.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow, with negative growth in the TTM period. The operating cash flow to net income ratio is positive, indicating some operational cash generation, but the free cash flow to net income ratio is negative, reflecting cash flow challenges. The company needs to improve its cash flow management to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	442.12M	467.01M	521.82M	545.84M	505.02M	318.95M
Gross Profit	196.20M	217.19M	252.42M	272.60M	249.82M	104.86M
EBITDA	5.98M	18.91M	55.89M	73.81M	76.86M	-39.04M
Net Income	-7.64M	3.06M	27.85M	89.12M	56.71M	-64.54M
Balance Sheet
Total Assets	401.54M	380.95M	357.74M	350.60M	279.96M	306.75M
Cash, Cash Equivalents and Short-Term Investments	27.02M	48.42M	60.05M	52.07M	15.51M	19.00M
Total Debt	213.28M	184.62M	154.54M	144.24M	155.60M	253.81M
Total Liabilities	264.33M	239.73M	208.79M	213.37M	221.74M	310.83M
Stockholders Equity	137.20M	141.22M	148.95M	137.23M	58.22M	-4.08M
Cash Flow
Free Cash Flow	-11.40M	1.86M	32.18M	50.30M	70.27M	-5.47M
Operating Cash Flow	13.92M	29.58M	49.59M	59.94M	75.54M	-1.23M
Investing Cash Flow	-2.31M	-31.34M	-49.15M	-9.64M	-5.27M	-4.24M
Financing Cash Flow	-4.12M	-13.93M	-24.93M	-13.73M	-73.76M	20.13M

Destination XL Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXLG, the sentiment is Negative. The current price of 0.93 is below the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.01, and below the 200-day MA of 1.19, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 17.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXLG.

Destination XL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VSCO	71 Outperform	$4.32B	26.39	31.50%	―	2.97%	9.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFIX	54 Neutral	$696.49M	-23.51	-14.67%	―	-0.08%	73.05%
DXLG	51 Neutral	$50.80M	-6.57	-5.41%	―	-8.83%	-186.80%
DLTH	49 Neutral	$77.49M	-2.41	-17.04%	―	-6.40%	11.65%
CATO	45 Neutral	$60.83M	-6.66	-5.58%	―	-1.01%	65.04%
CURV	45 Neutral	$103.16M	-46.85	―	―	-7.33%	-114.80%

Destination XL Corporate Events

Destination XL Announces Merger with FullBeauty Holdings

On December 11, 2025, Destination XL Group, Inc. (DXL) and FBB Holdings I, Inc. (FullBeauty) announced a merger of equals to create a leading retailer in the inclusive apparel market. The combined company aims to leverage complementary strengths in gender, product, and channel to accelerate growth and improve operational efficiency. The merger is expected to generate $25 million in annual cost synergies and enhance financial flexibility, positioning the company for long-term growth and shareholder value. The leadership team will include Jim Fogarty as CEO and Peter Stratton as CFO, with the headquarters remaining in Canton, MA.