Destination XL (DXLG) AI Stock Analysis

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Destination XL

(NASDAQ:DXLG)

Rating:59Neutral

Price Target:―

Destination XL's overall score reflects a balance of promising financial recovery and strategic initiatives against bearish technical indicators and valuation concerns. Significant challenges in sales and market conditions weigh on the outlook, but strategic efforts could stabilize and grow the business in the long term.

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

Market Cap

$58.34M

Dividend YieldN/A

Average Volume (3M)246.00K

Price to Earnings (P/E)24.2

Beta (1Y)1.00

Revenue Growth-10.50%

EPS Growth-88.94%

CountryUS

Employees1,447

SectorConsumer Cyclical

Sector Strength74

IndustryApparel - Retail

Share Statistics

EPS (TTM)0.02

Shares Outstanding53,524,864

10 Day Avg. Volume131,181

30 Day Avg. Volume245,995

Financial Highlights & Ratios

PEG Ratio-0.40

Price to Book (P/B)0.59

Price to Sales (P/S)0.00

P/FCF Ratio42.01

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$2.13

Price Target Upside95.41% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Destination XL Business Overview & Revenue Model

Company DescriptionDestination XL Group, Inc. (DXLG) is a leading retailer specializing in men's big and tall apparel and accessories. The company operates through a network of retail stores and an online platform, offering a broad selection of private-label and name-brand clothing, including casual wear, business attire, shoes, and accessories, specifically designed to fit the larger and taller male demographic.

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 Financial Statement Overview

Summary

Destination XL has demonstrated robust revenue growth and improved profitability. The company has transitioned from negative to positive net profit margins, indicating better operational efficiency. However, recent declines in revenue and profit margins, along with the need for consistent cash flow management, are areas to watch.

Income Statement

Positive

Destination XL has demonstrated robust revenue growth over the years, particularly recovering from a challenging year in 2021. Gross profit margins are healthy, and the company has transitioned from negative to positive net profit margins, indicating improved operational efficiency. However, recent declines in revenue and profit margins need to be monitored.

Balance Sheet

Positive

The balance sheet shows a positive trend with increasing equity and a reduction in debt over the years, improving the debt-to-equity ratio. The equity ratio is strengthening, suggesting better financial stability. Despite these improvements, the company still needs to maintain this trajectory to ensure long-term solvency.

Cash Flow

Positive

Cash flow analysis reveals strong operating cash flow with fluctuations in free cash flow due to variable capital expenditures. The company's transition to positive free cash flow in recent years is a positive sign, but consistent cash flow generation remains a priority for sustained growth.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
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
	EBIT
3.73M	41.94M	58.59M	61.98M	-45.67M
	EBITDA
18.91M	55.89M	73.81M	76.86M	-39.04M
	Net Income Common Stockholders
3.06M	27.85M	89.12M	56.71M	-64.54M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.42M	60.05M	52.07M	15.51M	19.00M
	Total Assets
380.95M	357.74M	350.60M	279.96M	306.75M
	Total Debt
184.62M	154.54M	181.57M	190.80M	253.81M
	Net Debt
172.71M	126.95M	129.50M	175.29M	234.81M
	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 Price1.09

Price Trends

50DMA

1.24

Negative

100DMA

1.87

Negative

200DMA

2.31

Negative

Market Momentum

MACD

-0.04

Negative

RSI

48.51

Neutral

STOCH

42.95

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 1.09 is above the 20-day moving average (MA) of 1.04, below the 50-day MA of 1.24, and below the 200-day MA of 2.31, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 42.95 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.95%	2.65%	-21.93%
DXLG	59 Neutral	$58.34M	24.17	2.11%	―	-10.50%	-88.94%
BIRD	49 Neutral	$53.18M	―	-72.29%	―	-23.63%	41.36%
DLTH	47 Neutral	$66.23M	―	-22.43%	―	-3.10%	-381.92%
LVLU	44 Neutral	$17.56M	―	-179.00%	―	-11.33%	-183.48%
PLCE	43 Neutral	$125.61M	―	-521.67%	―	-13.49%	63.10%
TLYS	43 Neutral	$26.09M	―	-37.62%	―	-8.61%	-33.30%

* Consumer Cyclical Sector Average

Performance Comparison

DXLG

Destination XL

1.09

-2.50

-69.64%

PLCE

Children's Place

5.70

-7.65

-57.30%

TLYS

Tilly's

0.86

-4.90

-85.07%

DLTH

Duluth Holdings

1.84

-2.27

-55.23%

BIRD

Allbirds

6.60

-5.69

-46.30%

LVLU

Lulu's Fashion Lounge Holdings

0.41

-1.49

-78.42%

Destination XL Earnings Call Summary

Earnings Call Date:Mar 20, 2025

(Q4-2024)

% Change Since: -46.04%|

Next Earnings Date:May 29, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strategic initiatives and financial stability, indicating a strong foundation and future potential. However, significant challenges such as declining sales, new store performance issues, and economic uncertainties were noted. The company is actively addressing these issues through strategic promotions and partnerships.

Q4-2024 Updates

Positive Updates

Strategic Initiatives and Expansion

Opened seven new stores and converted eight others from Casual Male to DXL. Launched a new e-commerce platform and upgraded the loyalty program to DXL Rewards.

Financial Stability

Despite a challenging year, DXL maintained positive net earnings, positive free cash flow, and adjusted EBITDA margins of 4.3%. The company ended the fiscal year with $48.4 million in cash and no debt.

Inventory Management Success

Inventory balance decreased by 6.8% with clearance penetration below 10%, demonstrating effective inventory management.

Nordstrom Partnership

Launched collaboration with Nordstrom online marketplace, offering 37 brands and over 2,200 styles.

Negative Updates

Decline in Comparable Sales

Comparable sales decreased by 8.7% in Q4, with store sales down 6.7% and direct sales down 12.7%.

New Store Performance Challenges

All 11 new stores opened did not meet sales expectations, largely due to low brand awareness and traffic issues.

Lack of Traffic

Overall traffic to stores was significantly down, which remains a major challenge for growth.

Tariffs and Economic Uncertainty

Uncertainty about tariffs could impact margins, with potential exposure in Vietnam, India, and Bangladesh.

Company Guidance

During the Destination XL Group, Inc. fourth quarter fiscal 2024 earnings call, the company did not issue specific guidance for fiscal 2025, citing increased market volatility and macroeconomic uncertainties, including the potential impact of tariffs. Despite a 12.5% decline in comparable sales for the first six weeks of fiscal 2025, CEO Harvey Kanter expressed optimism about strategic initiatives designed to capture a larger share of the big and tall market. These initiatives include an upgraded e-commerce platform, a new loyalty program, strategic store openings, and partnerships with Nordstrom and TravisMathew. The company aims to stabilize its business and drive growth by enhancing customer acquisition and retention while maintaining financial discipline, as evidenced by a solid balance sheet with $48.4 million in cash and no debt. Although they expect comparable sales to improve from a double-digit negative in the first quarter to positive in the second half of the year, they refrained from providing a range of expected sales and EBITDA outcomes for the year.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.