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Destination XL
(NASDAQ:DXLG)
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Rating:45Neutral
Price Target:
$0.60
▼(-4.13% Downside)
Action:Reiterated
Date:09/10/26
DXLG scores low primarily due to deteriorating financial performance (recent losses, falling revenue, and negative TTM free cash flow) and elevated liquidity/uncertainty signals highlighted in the latest quarter. Technicals are mostly neutral and do not offset the fundamental pressure, while valuation is constrained by loss-making results and no dividend support. Corporate developments (Nasdaq bid-price compliance risk and deal/leadership uncertainty) further weigh on confidence.
Positive Factors
Differentiated market position
A focused position in an underserved customer segment can support durable relevance and reduce direct assortment overlap with broader apparel retailers. The stated brand strength, customer loyalty, and specialized market knowledge provide a foundation for repeat engagement and longer-term omnichannel growth.
Negative Factors
Sustained profitability deterioration
The combination of falling revenue and a large TTM loss indicates that the current cost structure is not being supported by merchandise volume. Even with gross margin near 39–40%, continued operating losses can erode equity, restrict investment capacity, and make a durable recovery more execution-dependent.
Read all positive and negative factors
Positive Factors
Negative Factors
Differentiated market position
A focused position in an underserved customer segment can support durable relevance and reduce direct assortment overlap with broader apparel retailers. The stated brand strength, customer loyalty, and specialized market knowledge provide a foundation for repeat engagement and longer-term omnichannel growth.
Read all positive factors
Destination XL (DXLG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.82M
Dividend YieldN/A
Average Volume (3M)60.64K
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth-4.22%
EPS Growth-608.02%
CountryUS
Employees1,435
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.69
Shares Outstanding55,273,090
10 Day Avg. Volume118,097
30 Day Avg. Volume60,644
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.22
Revenue Forecast (FY)$418.39M
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:Nov 12, 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
28
Negative
Balance Sheet
46
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 428.87M | 435.02M | 467.01M | 521.82M | 545.84M | 505.02M |
| Gross Profit | 169.09M | 173.66M | 217.19M | 252.42M | 272.60M | 249.82M |
| EBITDA | -3.14M | -2.02M | 18.91M | 55.89M | 73.81M | 76.86M |
| Net Income | -37.59M | -35.91M | 3.06M | 27.85M | 89.12M | 56.71M |
Balance Sheet | ||||||
| Total Assets | 355.78M | 366.95M | 380.95M | 357.74M | 350.60M | 279.96M |
| Cash, Cash Equivalents and Short-Term Investments | 20.11M | 28.84M | 48.42M | 60.05M | 52.07M | 15.51M |
| Total Debt | 0.00 | 209.23M | 184.62M | 154.54M | 144.24M | 155.60M |
| Total Liabilities | 170.30M | 258.85M | 239.73M | 208.79M | 213.37M | 221.74M |
| Stockholders Equity | 104.53M | 108.09M | 141.22M | 148.95M | 137.23M | 58.22M |
Cash Flow | ||||||
| Free Cash Flow | -12.52M | 1.86M | 1.86M | 32.18M | 50.30M | 70.27M |
| Operating Cash Flow | 1.41M | 29.58M | 29.58M | 49.59M | 59.94M | 75.54M |
| Investing Cash Flow | 2.08M | -31.34M | -31.34M | -49.15M | -9.64M | -5.27M |
| Financing Cash Flow | -483.00K | -13.93M | -13.93M | -24.93M | -13.73M | -73.76M |
Destination XL Technical Analysis
Negative
0.63
Price Trends
0.62
Positive
0.65
Negative
0.69
Negative
Market Momentum
<0.01
Negative
50.04
Neutral
50.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXLG, the sentiment is Negative. The current price of 0.63 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.62, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 50.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $396.27M | -20.08 | -9.35% | ― | 4.66% | 68.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $168.74M | 28.38 | 3.54% | ― | -8.63% | ― | |
49 Neutral | $248.80M | -25.66 | 4.27% | ― | -11.16% | -384.28% | |
45 Neutral | $34.82M | -0.90 | -33.24% | ― | -4.22% | -608.02% | |
42 Neutral | $50.58M | -8.27 | -3.39% | 15.08% | -1.10% | 70.99% |
* Consumer Cyclical Sector Average
DXLG
Destination XL
0.62
-0.64
-50.87%
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CURV
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2.32
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28.18%
Destination XL Corporate Events
Business Operations and StrategyExecutive/Board Changes
Destination XL Names Jimmy Olsson Chief Growth Officer
Positive
Sep 2, 2026
On September 2, 2026, Destination XL appointed James E. “Jimmy” Olsson as Executive Vice President and Chief Growth Officer, effective September 6, 2026, formalizing his transition from a well-compensated consulting role begun in Septe...
M&A TransactionsRegulatory Filings and Compliance
Destination XL Extends Timeline for FBB Merger Agreement
Neutral
Aug 19, 2026
On December 11, 2025, Destination XL Group, Inc., its wholly owned subsidiary Divine Merger Sub I, Inc., and FBB Holdings I, Inc. entered into an Agreement and Plan of Merger. The deal is structured to issue DXL common stock to complete the combin...
Business Operations and StrategyExecutive/Board Changes
Destination XL appoints Lionel Conacher interim CEO
Neutral
Aug 6, 2026
Destination XL Group announced that Board Chairman Lionel F. Conacher will become interim chief executive officer and principal executive officer on August 12, 2026, following the retirement and August 11, 2026 departure of longtime CEO and direct...
Delistings and Listing ChangesRegulatory Filings and ComplianceStock Split
Destination XL Transfers Listing to Nasdaq Capital Market
Negative
Aug 5, 2026
On February 4, 2026, Destination XL Group received notice from Nasdaq that its shares had failed to meet the $1.00 minimum bid price requirement for 30 consecutive business days, triggering an initial 180‑day compliance period ending August ...
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...
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.