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Destination XL
(NASDAQ:DXLG)
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Rating:45Neutral
Price Target:
$0.61
▲(9.29% Upside)
Action:Reiterated
Date:07/09/26
DXLG scores low primarily due to deteriorating financial performance—shrinking revenue, compressed margins, operating losses, and negative free cash flow alongside higher leverage. Technical indicators also reflect weak momentum and a bearish trend. While the earnings call highlighted some operational initiatives and liquidity availability, near-term profitability, cash concerns, and merger/leadership uncertainty keep the overall outlook constrained.
Positive Factors
FitMap — improved customer fit & conversion
FitMap's full rollout and 100k+ engagements drove roughly +100bps conversion, double-digit higher baskets, lower returns and improved LTV. These customer-experience gains sustainably raise unit economics, improve inventory turns and support higher long-term margins if adoption remains broad.
Negative Factors
Sharply deteriorating revenue & margins
A roughly 50% TTM revenue drop and gross margin compression to ~40% materially weakens fixed‑cost absorption and has flipped the business into operating losses. Without sustained top-line recovery, structural profitability remains impaired and could pressure reinvestment and turnaround timing over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
FitMap — improved customer fit & conversion
FitMap's full rollout and 100k+ engagements drove roughly +100bps conversion, double-digit higher baskets, lower returns and improved LTV. These customer-experience gains sustainably raise unit economics, improve inventory turns and support higher long-term margins if adoption remains broad.
Read all positive factors
Destination XL (DXLG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.19M
Dividend YieldN/A
Average Volume (3M)253.84K
Price to Earnings (P/E)―
Beta (1Y)1.29
Revenue Growth-5.30%
EPS Growth-1323.39%
CountryUS
Employees1,435
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.73
Shares Outstanding55,273,090
10 Day Avg. Volume621,562
30 Day Avg. Volume253,845
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.34
Price to Sales (P/S)0.08
P/FCF Ratio19.87
Enterprise Value/Market Cap6.85
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit1.44
Enterprise Value/Ebitda-55.41
Forecast
1Y Price Target
$1.25Price Target Upside123.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.2
Revenue Forecast (FY)$418.49M
Destination XL Business Overview & Revenue Model
Company Description
Destination XL Group, Inc., including its various subsidiaries, specializes in retailing apparel and footwear designed for big and tall men across both the United States and Canada. Their diverse product assortment encompasses sportswear, formal a...
How the Company Makes Money
DXLG primarily makes money by selling big-and-tall men’s apparel, footwear, and accessories through two main channels: (1) physical retail stores (DXL locations) and (2) its direct-to-consumer e-commerce business. Revenue is generated at the point...
Destination XL Earnings Call Summary
Earnings Call Date:Jun 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Negative
The call contained several constructive strategic developments — notably FitMap traction, higher private brand penetration, AI investments, reduced tariff exposure estimate, and available credit — but these positives were outweighed by near-term financial and operational challenges: revenue and comp declines, widened net loss and adjusted EBITDA loss, meaningful reported decline in cash & investments (per CFO), continued store traffic weakness, margin pressure from tariffs/shipping/markdowns, supply chain timing issues, and merger/leadership uncertainty. Management is optimistic about second-half recovery and pursuing cost and portfolio actions, but material risks remain in the near term.Positive Updates
Improved Quarterly Comparable Sales (Best in 3 Years)
Quarterly comparable sales declined 3.8% but represented the company's strongest quarterly comp performance since Q2 FY23; monthly comps were Feb -1.3%, Mar -2.7% and Apr -6.8% (May subsequently ~-5% to -6%). Management views this as indication turnaround initiatives are beginning to gain traction.
Negative Updates
Revenue Decline
Net sales for the quarter were $103.0 million versus $106.0 million in the prior-year quarter, a decline of approximately 2.8%.
Read all updates
Q1-2026 Updates
Positive
Negative
Improved Quarterly Comparable Sales (Best in 3 Years)
Quarterly comparable sales declined 3.8% but represented the company's strongest quarterly comp performance since Q2 FY23; monthly comps were Feb -1.3%, Mar -2.7% and Apr -6.8% (May subsequently ~-5% to -6%). Management views this as indication turnaround initiatives are beginning to gain traction.
Read all positive updates
Company Guidance
Management's guidance and targets for FY26 included marketing spend of about 5.8% of sales (Q1 was 6.5%), capital expenditures of $8–$12 million (net of tenant incentives), and an estimated tariff headwind of ~100 basis points to gross margin (improved from a prior 150 bps estimate) while the company has submitted an approximately $4 million tariff refund claim; operational checkpoints noted in the quarter were net sales of $103.0M (vs $106.0M LY), comparable sales down 3.8% (store -4.6%, direct -1.6%), gross margin incl. occupancy 44.3% (down 80 bps YoY: merchandise -100 bps, occupancy +20 bps), SG&A 45.0% of sales, adjusted EBITDA loss $0.7M, adjusted net loss $0.06 per diluted share (GAAP net loss $5.9M, $0.11 per share), cash & investments $0.2M with $70M availability, inventory $81.4M (down $4.1M YoY) and free cash flow use of $12.7M YTD; strategic metrics cited to drive the plan include FitMap rolled out to all 188 stores with >100k engagements (users show ~100 bps higher conversion and double‑digit higher baskets), Nordstrom marketplace demand +20% YoY in Q4, and clearance levels in line with a 10% target.Destination XL Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
34
Negative
Cash Flow
28
Negative
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 432.82M | 435.02M | 467.01M | 521.82M | 545.84M | 505.02M |
| Gross Profit | 167.86M | 173.66M | 217.19M | 252.42M | 272.60M | 249.82M |
| EBITDA | -4.35M | -2.02M | 18.91M | 55.89M | 73.81M | 76.86M |
| Net Income | -39.91M | -35.91M | 3.06M | 27.85M | 89.12M | 56.71M |
Balance Sheet | ||||||
| Total Assets | 366.12M | 366.95M | 380.95M | 357.74M | 350.60M | 279.96M |
| Cash, Cash Equivalents and Short-Term Investments | 16.18M | 28.84M | 48.42M | 60.05M | 52.07M | 15.51M |
| Total Debt | 213.08M | 209.23M | 184.62M | 154.54M | 144.24M | 155.60M |
| Total Liabilities | 263.55M | 258.85M | 239.73M | 208.79M | 213.37M | 221.74M |
| Stockholders Equity | 102.57M | 108.09M | 141.22M | 148.95M | 137.23M | 58.22M |
Cash Flow | ||||||
| Free Cash Flow | -11.88M | 1.86M | 1.86M | 32.18M | 50.30M | 70.27M |
| Operating Cash Flow | 5.27M | 29.58M | 29.58M | 49.59M | 59.94M | 75.54M |
| Investing Cash Flow | -1.65M | -31.34M | -31.34M | -49.15M | -9.64M | -5.27M |
| Financing Cash Flow | -606.00K | -13.93M | -13.93M | -24.93M | -13.73M | -73.76M |
Destination XL Technical Analysis
Neutral
0.56
Price Trends
0.68
Negative
0.62
Positive
0.77
Negative
Market Momentum
-0.01
Positive
45.42
Neutral
36.28
Neutral
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 0.56 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.68, and below the 200-day MA of 0.77, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 36.28 is Neutral, 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 29 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $505.68M | -26.34 | -9.35% | ― | 4.66% | 68.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $162.27M | -13.20 | -6.80% | ― | -8.42% | 79.65% | |
53 Neutral | $231.88M | -18.33 | 6.03% | ― | -10.09% | -232.12% | |
47 Neutral | $64.07M | 321.00 | -0.14% | ― | 1.82% | ― | |
45 Neutral | $35.19M | -0.87 | -32.66% | ― | -5.30% | -1323.39% |
* Consumer Cyclical Sector Average
DXLG
Destination XL
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Destination XL Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Destination XL Board Rejects Revised Zodiac Tender Offer
Negative
Jul 8, 2026
On July 8, 2026, Destination XL Group, Inc. announced that its board of directors unanimously recommended shareholders reject Zodiac Partners II’s revised unsolicited tender offer of $0.84 per share in cash. After consultation with external ...
Business Operations and StrategyM&A Transactions
Destination XL Board Reviews Revised Zodiac Tender Offer
Neutral
Jun 23, 2026
On June 23, 2026, Destination XL Group, Inc. said its board is reviewing a revised, unsolicited tender offer from Zodiac Partners II, which seeks to acquire all outstanding DXL shares for $0.84 in cash. The board, supported by independent financia...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Destination XL Reevaluates FullBeauty Merger Amid Q1 Update
Negative
Jun 3, 2026
Destination XL Group, Inc., the Nasdaq-listed Big + Tall menswear retailer, said on June 3, 2026 that its board has re-examined the previously announced merger of equals with FBB Holdings I, Inc., the parent of FullBeauty Brands. After reviewing t...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Destination XL Board Rejects Unsolicited Tender Offer
Negative
May 26, 2026
On May 26, 2026, Destination XL Group’s board unanimously urged shareholders to reject an unsolicited $0.82-per-share tender offer from Zodiac Partners II, calling it highly conditional, opportunistic and not reflective of the company’...
M&A TransactionsRegulatory Filings and Compliance
Destination XL Board Reviewing Unsolicited Zodiac Tender Offer
Neutral
May 22, 2026
Destination XL Group, Inc., the leading integrated commerce retailer for Big + Tall men, said on May 22, 2026, that its board is reviewing an unsolicited cash tender offer of $0.82 per share launched on May 12, 2026, by Zodiac Partners II, LLC. Th...
Executive/Board Changes
Destination XL Announces Upcoming CEO Retirement and Transition
Neutral
May 15, 2026
Destination XL Group, Inc. said it notified President and Chief Executive Officer Harvey S. Kanter on May 11, 2026, that it will not renew his employment agreement, which was originally effective April 1, 2022 and later amended in August 2023. The...
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.