Destination XL Group (NASDAQ:DXLG) Issues Quarterly Earnings Results

Destination XL Group (NASDAQ:DXLG) announced its quarterly earnings results on Thursday. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.06), FiscalAI reports. Destination XL Group had a negative return on equity of 3.81% and a negative net margin of 1.73%.The business had revenue of $112.10 million for the quarter, compared to analyst estimates of $112.32 million.

Here are the key takeaways from Destination XL Group’s conference call:

• Management expects the FullBeauty merger proxy to be filed after today’s 10‑K, with a preliminary proxy within ~30 days and a target close in Q2 fiscal 2026 subject to customary conditions and shareholder approval.
• Comparable sales fell in fiscal 2025 (Q4 comps -7.3%, full year -8.4%) but momentum improved to -1.3% in February (March tracking similarly); the company expects comps to reach break‑even before summer and turn positive later in fiscal 2026.
• FiTMAP is now live in 188 stores and mobile (over 63,000 scans) and management says scanned guests show higher AOV, frequency and conversion, with marketing and activation planned to scale adoption and omnichannel lift.
• The company is shifting assortment toward private brands (targeting >60% private label in 2026 and >65% in 2027) and moving to more targeted, “surgical” promotions and loyalty work to drive acquisition and retention, accepting some short‑term margin tradeoffs.
• Gross margin deteriorated (Q4 margin incl. occupancy 40.8% vs 44.4% LY) due to lower merchandise margin, occupancy deleverage and tariffs (~110 bps in Q4), and the company took a non‑cash $20.4 million valuation allowance against deferred tax assets.

Destination XL Group Stock Down 1.3%

Shares of NASDAQ DXLG opened at $0.51 on Friday. The stock has a market cap of $28.04 million, a P/E ratio of -3.66 and a beta of 1.47. The firm’s 50-day simple moving average is $0.64 and its 200 day simple moving average is $0.94. Destination XL Group has a fifty-two week low of $0.46 and a fifty-two week high of $1.88.

Institutional Trading of Destination XL Group

A number of hedge funds and other institutional investors have recently made changes to their positions in DXLG. Two Sigma Investments LP boosted its holdings in shares of Destination XL Group by 64.8% in the third quarter. Two Sigma Investments LP now owns 136,703 shares of the company’s stock valued at $179,000 after acquiring an additional 53,773 shares in the last quarter. Bank of America Corp DE raised its holdings in Destination XL Group by 47.8% during the third quarter. Bank of America Corp DE now owns 63,384 shares of the company’s stock worth $83,000 after purchasing an additional 20,490 shares in the last quarter. Jane Street Group LLC raised its holdings in Destination XL Group by 32.9% during the first quarter. Jane Street Group LLC now owns 63,044 shares of the company’s stock worth $92,000 after purchasing an additional 15,593 shares in the last quarter. CIBC Bancorp USA Inc. acquired a new stake in Destination XL Group in the third quarter worth approximately $445,000. Finally, Nantahala Capital Management LLC lifted its position in Destination XL Group by 74.8% in the third quarter. Nantahala Capital Management LLC now owns 4,505,000 shares of the company’s stock worth $5,902,000 after purchasing an additional 1,928,226 shares during the period. 73.49% of the stock is currently owned by institutional investors.

About Destination XL Group

Destination XL Group, Inc (NASDAQ: DXLG) is a specialty retailer focused on big and tall men’s apparel and accessories. Operating under its flagship DXL and Casual Male XL banners, the company offers an assortment of men’s clothing in larger sizes, including suits, dress shirts, casual wear, outerwear, activewear and underwear. In addition to its brick-and-mortar stores, Destination XL maintains a significant omnichannel presence through its e-commerce platform and direct mail catalog, enabling customers to shop for extended-size apparel across North America.

Founded in 1976 and headquartered in Canton, Massachusetts, the company began its operations as Casual Male XL and over time evolved its retail concept to the Destination XL format, which emphasizes an elevated, destination-style shopping experience.