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Destination XL (DXLG)
NASDAQ:DXLG
US Market
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Destination XL (DXLG) AI Stock Analysis

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DXLG

Destination XL

(NASDAQ:DXLG)

Rating:56Neutral
Price Target:
$1.50
▲(0.67% Upside)
Destination XL's stock score reflects significant financial challenges, with declining revenues and profitability being the most impactful factors. Technical indicators show moderate bullish momentum, providing some optimism. Valuation remains unattractive due to a negative P/E ratio, while the earnings call suggests potential recovery through strategic shifts, albeit with ongoing challenges.
Positive Factors
Private Brand Strategy
Focusing on private brands can enhance margins and customer loyalty, as these brands typically offer better profitability compared to national brands.
FitMap Initiative
The FitMap initiative enhances customer engagement and personalization, potentially increasing customer satisfaction and repeat business.
Strategic Partnerships
Partnerships with established retailers like Nordstrom can increase brand visibility and access to a broader customer base, driving sales growth.
Negative Factors
Decline in Comparable Sales
A decline in comparable sales indicates challenges in maintaining customer demand, which can pressure revenue and profitability if not addressed.
E-commerce Platform Challenges
Issues with the e-commerce platform can hinder online sales growth, critical for reaching a wider audience and competing in the digital retail space.
Increased Competition
Rising competition in the big and tall segment can erode market share and customer loyalty, challenging DXL's market position and growth prospects.

Destination XL (DXLG) vs. SPDR S&P 500 ETF (SPY)

Destination XL Business Overview & Revenue Model

Company DescriptionDestination 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 MoneyDestination 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 Earnings Call Summary

Earnings Call Date:Aug 27, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlights a strategic shift towards private brands and an improvement in monthly sales trends, which indicates potential recovery. However, significant challenges remain, including declining comparable sales, e-commerce platform issues, increased competition, tariff impacts, and underperforming new stores.
Q2-2025 Updates
Positive Updates
Improvement in Monthly Sales Trends
Sales trends improved month over month, with comparable sales down 10.4% in May, down 9.6% in June, and down 7% in July, indicating a potential recovery.
Strong Private Brand Strategy
DXL is strategically shifting its assortment to prioritize private brands, with a current penetration of 56.5% and a target to exceed 65% by 2027, to leverage better margins and customer loyalty.
Successful FitMap Initiative
The FitMap technology has recorded over 23,000 fit profile scans and is deployed in 62 stores, enhancing customer engagement and personalized retail experiences.
Controlled Operating Expenses
Operating expenses are down year-over-year, with corporate headcount reduced by 15% since the pandemic and inventory levels remaining stable.
Strategic Partnerships
DXL's collaboration with Nordstrom is expanding customer exposure to DXL's assortment, with strong demand in the anniversary sale.
Negative Updates
Decline in Comparable Sales
Second quarter comparable sales declined by 9.2%, with stores down 7.1% and direct sales down 14.4%, affected by weak apparel demand.
Challenges with New E-commerce Platform
The direct business faced challenges with a new e-commerce platform, impacting traffic and average order value, despite improvements in conversion rates.
Increased Competition in Big and Tall Segment
The big and tall space is experiencing increased competition, impacting sales and customer loyalty as more retailers expand into this segment.
Impact of Tariffs
Tariffs could increase inventory costs by just under $4 million in fiscal 2025, with ongoing uncertainties affecting financial performance.
New Stores Underperforming
Collectively, new stores are performing below initial expectations due to weak customer demand and macroeconomic challenges.
Company Guidance
During the Destination XL Group's second quarter fiscal 2025 earnings call, the company provided guidance reflecting ongoing strategic shifts and financial challenges. Comparable sales saw a decline of 9.2%, with store sales down 7.1% and direct sales down 14.4%. The company is focusing on increasing private brand sales penetration from 56.5% to over 65% by 2027 to leverage better margins, which are currently in the upper sixties to mid-seventies, compared to low fifties for national brands. Despite a challenging sales environment, there were signs of improvement, with sales trends gradually improving monthly. The company also outlined the impact of tariffs, estimating an increased inventory cost of nearly $4 million for fiscal 2025, and is planning strategic pricing adjustments to mitigate these effects. Additionally, DXL highlighted its FitNap initiative aiming to enhance customer engagement and personalization, with over 23,000 fit profile scans recorded since inception. The company has paused new store openings to focus on cash flow, with a projected maintenance CapEx of up to $10 million annually, while it continues to refine its promotional strategies to balance value perception and profitability.

Destination XL Financial Statement Overview

Summary
Destination XL faces financial challenges with declining revenues and profitability. The balance sheet shows manageable leverage, but cash flow pressures are evident, impacting future operations.
Income Statement
45
Neutral
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
60
Neutral
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
55
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue447.74M467.01M521.82M545.84M505.02M318.95M
Gross Profit201.11M217.19M252.42M272.60M249.82M104.86M
EBITDA9.16M18.91M55.89M73.81M76.86M-39.04M
Net Income-5.33M3.06M27.85M89.12M56.71M-64.54M
Balance Sheet
Total Assets408.84M380.95M357.74M350.60M279.96M306.75M
Cash, Cash Equivalents and Short-Term Investments33.54M48.42M60.05M52.07M15.51M19.00M
Total Debt0.00184.62M154.54M181.57M190.80M253.81M
Total Liabilities267.92M239.73M208.79M213.37M221.74M310.83M
Stockholders Equity140.93M141.22M148.95M137.23M58.22M-4.08M
Cash Flow
Free Cash Flow-15.55M1.86M32.18M50.30M70.27M-5.47M
Operating Cash Flow11.50M29.58M49.59M59.94M75.54M-1.23M
Investing Cash Flow-5.03M-31.34M-49.15M-9.64M-5.27M-4.24M
Financing Cash Flow-13.92M-13.93M-24.93M-13.73M-73.76M20.13M

Destination XL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.49
Price Trends
50DMA
1.30
Positive
100DMA
1.19
Positive
200DMA
1.71
Negative
Market Momentum
MACD
0.02
Negative
RSI
64.37
Neutral
STOCH
76.54
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 1.49 is above the 20-day moving average (MA) of 1.32, above the 50-day MA of 1.30, and below the 200-day MA of 1.71, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.37 is Neutral, neither overbought nor oversold. The STOCH value of 76.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DXLG.

Destination XL Risk Analysis

Destination XL disclosed 25 risk factors in its most recent earnings report. Destination XL reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Destination XL Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.16B12.70-2.51%3.03%1.44%-15.67%
57
Neutral
$132.82M-24.97%-6.13%-215.18%
56
Neutral
$80.29M26.16-3.58%-9.85%-137.20%
54
Neutral
$57.29M-43.51%-11.10%-10.31%
46
Neutral
$154.73M-521.67%-12.08%93.16%
46
Neutral
$12.23M-187.85%-10.68%-74.47%
45
Neutral
$49.94M-78.23%-22.48%39.73%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DXLG
Destination XL
1.49
-1.31
-46.79%
PLCE
Children's Place
6.98
-5.23
-42.83%
TLYS
Tilly's
1.88
-3.07
-62.02%
DLTH
Duluth Holdings
3.62
-0.39
-9.73%
BIRD
Allbirds
6.13
-6.46
-51.31%
LVLU
Lulu's Fashion Lounge Holdings
4.45
-16.85
-79.11%

Destination XL Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Destination XL Amends Credit Facility Agreement
Neutral
Aug 14, 2025

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.

The most recent analyst rating on (DXLG) stock is a Buy with a $2.50 price target. To see the full list of analyst forecasts on Destination XL stock, see the DXLG Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Destination XL Confirms Directors at Annual Meeting
Neutral
Aug 8, 2025

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.

The most recent analyst rating on (DXLG) stock is a Hold with a $1.30 price target. To see the full list of analyst forecasts on Destination XL stock, see the DXLG Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Destination XL CMO James Reath Resigns
Negative
Aug 1, 2025

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.

The most recent analyst rating on (DXLG) stock is a Hold with a $1.75 price target. To see the full list of analyst forecasts on Destination XL stock, see the DXLG Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 12, 2025