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Destination XL (DXLG)
NASDAQ:DXLG
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Destination XL
(NASDAQ:DXLG)
Rating:55Neutral
Price Target:
$1.00
▼(-14.53%Downside)
Destination XL (DXLG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.65M
Dividend YieldN/A
Average Volume (3M)510.60K
Price to Earnings (P/E)26.2
Beta (1Y)1.03
Revenue Growth-10.71%
EPS Growth-112.57%
CountryUS
Employees1,447
SectorConsumer Cyclical
Sector Strength59
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.06
Shares Outstanding53,815,002
10 Day Avg. Volume1,010,087
30 Day Avg. Volume510,595
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.43
Price to Sales (P/S)0.00
P/FCF Ratio-6.13
Enterprise Value/Market Cap3.66
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit1.15
Enterprise Value/Ebitda2.60
Forecast
1Y Price Target
$1.30Price Target Upside11.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 Group, Inc. generates revenue primarily through the sale of apparel and accessories in its retail stores and online platform. The company's key revenue streams include direct sales from its physical store locations and e-commerce operations. Additionally, DXLG benefits from its exclusive private-label brands, which typically have higher margins than third-party brands. The company also engages in marketing and promotional activities to drive sales and maintain customer loyalty. Significant factors contributing to its earnings include its specialized market niche and the strategic location of its stores in high-traffic areas to maximize customer reach.
Destination XL Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q1-2025)
| % Change Since: -0.85%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were positive developments in customer initiatives, inventory management, and new product launches, significant challenges remain with overall sales decline, gross margin reduction, and new store performance. The company is focusing on strategic initiatives to stabilize and return to growth.Q1-2025 Updates
Positive Updates
Improvement in Comparable Sales Decline
The company's comparable sales decline improved from an expected 12.5% to 9.4%, indicating a partial recovery driven by strategic initiatives.
Inventory Management Success
Inventory turnover rate improved by over 30% since emerging from the pandemic, with clearance levels aligned with long-term expectations.
Positive Customer Feedback and Initiatives
The Net Promoter Score reached over 80, and initiatives like Fit Exchange and Heroes Discount showed strong customer engagement and spending increases.
Launch of New Brands and Products
Introduction of new brands such as Dickies, Haggar, and Perry Ellis, with Haggar exceeding expectations.
FitMAP Technology Rollout
Launching proprietary FitMAP technology in 52 stores, with plans to expand to 200 stores by 2027, enhancing the big and tall shopping experience.
Negative Updates
Overall Sales Decline
Net sales for the first quarter decreased from $115.5 million to $105.5 million due to a 9.4% drop in comparable sales.
Gross Margin Decrease
Gross margin rate decreased by 310 basis points to 45.1%, influenced by increased occupancy costs and higher markdown rates.
Financial Challenges
EBITDA dropped significantly to $100,000 compared to $8.2 million in the previous year, primarily due to decreased sales.
New Store Performance Issues
New stores faced challenges in traffic and awareness, affecting their performance and requiring further brand awareness efforts.
Company Guidance
During the Destination XL Group Inc. First Quarter Fiscal 2025 Financial Results Conference Call, the company reported a 9.4% decline in comparable sales, an improvement from the projected low double-digit decrease. Comp store sales were down 6.6% and direct sales fell 16.2%. The gross margin rate dropped to 45.1% from 48.2% last year due to increased occupancy costs and merchandise markdowns. The company is facing tariff challenges, estimating an additional cost of less than $2 million, or approximately 40 basis points, while trying to mitigate impacts through vendor relationships. The SG&A expenses as a percentage of sales increased to 45%, despite a dollar decrease in expenses. EBITDA was significantly impacted, falling to $100,000 from $8.2 million last year. Liquidity remains stable with $29.1 million in cash and short-term investments and no debt. The company is focused on strategic initiatives, including new promotional strategies, loyalty program enhancements, and technology like FitMAP to drive growth and improve customer engagement.Destination XL Financial Statement Overview
Summary
Destination XL is experiencing financial challenges with declining revenues and profitability, moderate debt levels, and cash flow pressures. While the balance sheet shows stable leverage, the negative EBIT, net income, and weakened cash flow indicate financial stress.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.45
Neutral
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.60
Neutral
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.55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 457.06M | 467.01M | 521.82M | 545.84M | 505.02M | 318.95M |
| Gross Profit | 209.09M | 217.19M | 252.42M | 272.60M | 249.82M | 104.86M |
| EBITDA | 10.89M | 18.91M | 55.89M | 73.81M | 76.86M | -39.04M |
| Net Income | -2.68M | 3.06M | 27.85M | 89.12M | 56.71M | -64.54M |
Balance Sheet | ||||||
| Total Assets | 380.08M | 380.95M | 357.74M | 350.60M | 279.96M | 306.75M |
| Cash, Cash Equivalents and Short-Term Investments | 29.08M | 48.42M | 60.05M | 52.07M | 15.51M | 19.00M |
| Total Debt | 187.34M | 184.62M | 154.54M | 181.57M | 190.80M | 253.81M |
| Total Liabilities | 239.37M | 239.73M | 208.79M | 213.37M | 221.74M | 310.83M |
| Stockholders Equity | 140.71M | 141.22M | 148.95M | 137.23M | 58.22M | -4.08M |
Cash Flow | ||||||
| Free Cash Flow | -9.92M | 1.86M | 32.18M | 50.30M | 70.27M | -5.47M |
| Operating Cash Flow | 18.68M | 29.58M | 49.59M | 59.94M | 75.54M | -1.23M |
| Investing Cash Flow | -13.13M | -31.34M | -49.15M | -9.64M | -5.27M | -4.24M |
| Financing Cash Flow | -13.80M | -13.93M | -24.93M | -13.73M | -73.76M | 20.13M |
Destination XL Technical Analysis
Neutral
1.17
Price Trends
1.09
Positive
1.41
Negative
2.06
Negative
Market Momentum
0.02
Negative
54.46
Neutral
80.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXLG, the sentiment is Neutral. The current price of 1.17 is above the 20-day moving average (MA) of 1.12, above the 50-day MA of 1.09, and below the 200-day MA of 2.06, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 80.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | £1.70B | 12.12 | 6.12% | 261.24% | 0.58% | -32.48% | |
56 Neutral | $83.80M | ― | -72.29% | ― | -23.63% | 41.36% | |
55 Neutral | $65.65M | 26.16 | -1.82% | ― | -10.71% | -112.57% | |
47 Neutral | $44.93M | ― | -47.54% | ― | -8.79% | -15.17% | |
46 Neutral | $13.55M | ― | -179.00% | ― | -11.33% | -183.52% | |
42 Neutral | $79.67M | ― | -27.53% | ― | -4.21% | -292.04% | |
40 Underperform | $111.95M | ― | -521.67% | ― | -12.15% | 75.86% |
* Consumer Cyclical Sector Average
Performance Comparison
DXLG
Destination XL
1.17
-2.16
-64.86%
PLCE
Children's Place
5.00
-3.99
-44.38%
TLYS
Tilly's
1.45
-4.07
-73.73%
DLTH
Duluth Holdings
2.20
-1.31
-37.32%
BIRD
Allbirds
10.51
0.64
6.48%
LVLU
Lulu's Fashion Lounge Holdings
4.53
-21.27
-82.44%
Destination XL Corporate Events
Business Operations and Strategy
Destination XL Amends Lease Agreement for Headquarters
Neutral
Jun 23, 2025
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.
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.
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.