Destination XL (DXLG) AI Stock Analysis

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Destination XL

(NASDAQ:DXLG)

Rating:56Neutral

Price Target:

$1.00

▼(-4.76%Downside)

Destination XL's stock score reflects a combination of financial recovery and ongoing challenges. The company's positive steps in reducing debt and improving margins are overshadowed by declining sales and technical weaknesses. While strategic initiatives offer potential for growth, the current valuation and negative P/E ratio highlight significant risks.

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

Market Cap

$54.89M

Dividend YieldN/A

Average Volume (3M)221.04K

Price to Earnings (P/E)26.2

Beta (1Y)0.96

Revenue Growth-10.71%

EPS Growth-112.57%

CountryUS

Employees1,447

SectorConsumer Cyclical

Sector Strength56

IndustryApparel - Retail

Share Statistics

EPS (TTM)-0.06

Shares Outstanding53,815,002

10 Day Avg. Volume305,363

30 Day Avg. Volume221,039

Financial Highlights & Ratios

PEG Ratio0.09

Price to Book (P/B)3.37

Price to Sales (P/S)0.00

P/FCF Ratio9.19

Enterprise Value/Market Cap10.78

Enterprise Value/Revenue0.30

Enterprise Value/Gross Profit2.77

Enterprise Value/Ebitda4.46

Forecast

1Y Price Target

$1.30

Price Target Upside23.81% 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 Earnings Call Summary

Earnings Call Date:May 29, 2025

(Q1-2025)

% Change Since: -11.02%|

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 shows a promising recovery and growth trajectory, with significant improvements in profitability and financial stability. However, recent declines in revenue and profit margins are concerning and need continuous monitoring.

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
19.69M	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

Negative

Last Price1.05

Price Trends

50DMA

1.06

Negative

100DMA

1.56

Negative

200DMA

2.14

Negative

Market Momentum

MACD

-0.01

Positive

RSI

45.38

Neutral

STOCH

14.20

Positive

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 1.05 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.06, and below the 200-day MA of 2.14, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 14.20 is Positive, 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 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	¥249.82B	12.90	6.57%	2.80%	5.08%	-11.25%
DXLG	56 Neutral	$54.89M	26.16	-1.82%	―	-10.71%	-112.57%
BIRD	54 Neutral	$84.60M	―	-72.29%	―	-23.63%	41.36%
DLTH	45 Neutral	$75.91M	―	-27.53%	―	-4.21%	-292.04%
TLYS	44 Neutral	$36.18M	―	-47.54%	―	-8.79%	-15.17%
LVLU	42 Neutral	$16.23M	―	-179.00%	―	-11.33%	-183.48%
PLCE	40 Underperform	$86.23M	―	-521.67%	―	-12.15%	75.86%

* Consumer Cyclical Sector Average

Performance Comparison

DXLG

Destination XL

1.05

-2.57

-70.99%

PLCE

Children's Place

3.74

-4.88

-56.61%

TLYS

Tilly's

1.19

-3.83

-76.29%

DLTH

Duluth Holdings

1.95

-1.92

-49.61%

BIRD

Allbirds

9.90

-1.87

-15.89%

LVLU

Lulu's Fashion Lounge Holdings

0.38

-1.37

-78.29%

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.