Destination XL (DXLG) AI Stock Analysis

• Market Cap: $69.96M
• Dividend Yield: N/A
• Average Volume (3M): 219.95K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.10
• Revenue Growth: -10.71%
• EPS Growth: -112.57%
• Country: US
• Employees: 1,447
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Apparel - Retail
• EPS (TTM): -0.06
• Shares Outstanding: 53,815,002
• 10 Day Avg. Volume: 120,691
• 30 Day Avg. Volume: 219,946
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.16
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: 20.29
• 1Y Price Target: $1.40
• Price Target Upside: 4.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• Price Target: $1.50 ▲(11.94% Upside)

Destination XL's overall stock score reflects financial challenges with declining revenues and profitability as the most significant factor. Technical analysis shows moderate strength, but valuation concerns due to unprofitability weigh heavily. The earnings call provides some optimism with strategic initiatives, while the recent CMO resignation adds uncertainty.

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 generates revenue primarily through the sale of its apparel and related products across multiple channels, including brick-and-mortar stores and online sales. Key revenue streams include direct sales from retail locations, which serve as showrooms for customers to experience products firsthand, and online transactions through its e-commerce platform, which allows for broader reach and convenience. Additionally, the company benefits from partnerships with various clothing brands, which help diversify its product offerings and attract a wider customer base. Marketing initiatives and loyalty programs further enhance customer retention and drive repeat business, contributing significantly to the company's earnings.

Destination XL Financial Statement Overview

Summary

Destination XL is experiencing financial challenges with declining revenues and profitability. The balance sheet shows manageable leverage, but decreased stockholders' equity and total assets indicate potential stress. Cash flow issues are apparent with negative free cash flow, although operating cash flow remains positive.

Income Statement

In the TTM period, Destination XL experienced a decline in performance with negative EBIT and net income, leading to negative profit margins. Compared to prior years, revenue has decreased, indicating a challenging market environment. The company has previously shown positive EBITDA, suggesting operational strength that has since weakened.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a manageable level of leverage. However, the decrease in stockholders' equity and total assets signals potential financial stress. Return on equity has also deteriorated, reflecting reduced profitability.

Cash Flow

The company's cash flow position has weakened, with negative free cash flow in the TTM period. Operating cash flow remains positive, though significantly lower than previous years, hinting at reduced cash generation from operations. The free cash flow to net income ratio indicates cash flow challenges.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	467.01M	521.82M	545.84M	505.02M	318.95M
Gross Profit	217.19M	252.42M	272.60M	249.82M	104.86M
EBITDA	18.91M	55.89M	73.81M	76.86M	-39.04M
Net Income	3.06M	27.85M	89.12M	56.71M	-64.54M
Balance Sheet
Total Assets	380.95M	357.74M	350.60M	279.96M	306.75M
Cash, Cash Equivalents and Short-Term Investments	48.42M	60.05M	52.07M	15.51M	19.00M
Total Debt	184.62M	154.54M	181.57M	190.80M	253.81M
Total Liabilities	239.73M	208.79M	213.37M	221.74M	310.83M
Stockholders Equity	141.22M	148.95M	137.23M	58.22M	-4.08M
Cash Flow
Free Cash Flow	1.86M	32.18M	50.30M	70.27M	-5.47M
Operating Cash Flow	29.58M	49.59M	59.94M	75.54M	-1.23M
Investing Cash Flow	-31.34M	-49.15M	-9.64M	-5.27M	-4.24M
Financing Cash Flow	-13.93M	-24.93M	-13.73M	-73.76M	20.13M

Destination XL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXLG, the sentiment is Positive. The current price of 1.34 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.24, and below the 200-day MA of 1.81, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 55.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXLG.

Destination XL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
DXLG	53 Neutral	$69.96M	26.16	-1.82%	―	-10.71%	-112.57%
TLYS	47 Neutral	$46.13M	―	-47.54%	―	-8.79%	-15.17%
DLTH	45 Neutral	$80.42M	―	-27.53%	―	-4.21%	-292.04%
BIRD	45 Neutral	$52.71M	―	-78.23%	―	-22.48%	39.73%
PLCE	44 Neutral	$97.98M	―	-521.67%	―	-12.15%	75.86%
LVLU	42 Neutral	$11.55M	―	-187.85%	―	-10.68%	-74.47%

Destination XL Corporate Events

Destination XL Amends Credit Facility Agreement

On August 13, 2025, Destination XL Group, Inc. amended its credit facility by entering into a Second Amendment to its Credit Agreement with Citizens Bank, N.A. The amendment reduces the revolving commitments from $125 million to $100 million, extends the maturity date to August 13, 2030, and revises the definition of a ‘Cash Dominion Event’ to require maintaining availability at a higher threshold. These changes reflect the company’s proactive reduction in inventory levels since fiscal 2020 and aim to better align its credit facility with current operational needs.

Destination XL Confirms Directors at Annual Meeting

On August 7, 2025, Destination XL held its Annual Meeting where stockholders voted on several key proposals. The election of seven directors was confirmed, with each director set to serve until the 2026 Annual Meeting. Additionally, the compensation of named executive officers was approved through a non-binding advisory vote, and KPMG LLP’s appointment as the independent registered public accounting firm for the fiscal year ending January 31, 2026, was ratified.

Destination XL CMO James Reath Resigns

On July 31, 2025, James Reath, the Chief Marketing Officer of Destination XL Group, Inc., resigned from his position. This departure may impact the company’s marketing strategies and leadership dynamics, potentially affecting its market positioning and stakeholder relations.

Destination XL Amends Lease Agreement for Headquarters

On June 20, 2025, Destination XL Group, Inc. announced an amendment to its lease agreement with 555 TNPK 74 Owner, LLC for its headquarters and distribution center in Canton, Massachusetts. The lease term has been extended for seven years starting February 1, 2026, with an annual rent increase of 3%. The agreement includes an improvement allowance of $4,719,000 for repairs and improvements, potentially impacting the company’s operational stability and long-term planning.