Destination XL Group (NASDAQ:DXLG) Announces Earnings Results, Misses Expectations By $0.06 EPS

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

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 Trading Up 0.2%

NASDAQ DXLG opened at $0.52 on Friday. The business’s 50-day moving average price is $0.64 and its 200 day moving average price is $0.94. Destination XL Group has a twelve month low of $0.46 and a twelve month high of $1.88. The company has a market capitalization of $28.48 million, a PE ratio of -3.66 and a beta of 1.47.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of DXLG. Jane Street Group LLC boosted its position in shares of Destination XL Group by 32.9% in the first quarter. Jane Street Group LLC now owns 63,044 shares of the company’s stock worth $92,000 after acquiring an additional 15,593 shares during the last quarter. XTX Topco Ltd acquired a new position in Destination XL Group in the second quarter valued at $72,000. Qube Research & Technologies Ltd purchased a new stake in Destination XL Group during the second quarter valued at about $84,000. Nantahala Capital Management LLC acquired a new stake in Destination XL Group during the second quarter worth about $2,860,000. Finally, Bank of America Corp DE raised its holdings in shares of Destination XL Group by 24.4% in the 2nd quarter. Bank of America Corp DE now owns 42,894 shares of the company’s stock worth $48,000 after purchasing an additional 8,404 shares during the period. 73.49% of the stock is currently owned by hedge funds and other 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.