GICS Sector : Consumer Cyclical
Destination XL Group, Inc., together with its subsidiaries, operates as a specialty retailer of big and tall men's clothing and shoes in the United States and Canada.Its stores offer sportswear and dresswear; fashion-neutral items, including jeans, casual slacks, T-shirts, polo shirts, dress shirts, and suit separates; and casual clothing.It also provides tailored-related separates, blazers, dress slacks, dress shirts, and neckwear; and vintage-screen T-shirts and wovens under various private labels.
Destination XL Group, Inc. (DXLG) reported a decline in net sales for the second quarter of fiscal 2025, with revenues reaching $115.5 million, a 9.2% decrease compared to the same period last year, primarily due to lower comparable sales. The gross margin rate also decreased to 45.2% from 48.2% last year, mainly due to increased occupancy costs and a higher markdown rate. The company's EPS came out at -$0.00492, beating estimates of -$0.05.
Publication Date: Sep -02
DXLG faced a challenging quarter due to weaker customer demand for apparel and increased competition in the big and tall space. However, the company saw sequential improvement in comp sales throughout the quarter, with July showing a 7% decline compared to 9.6% in June and 10.4% in May. To address these challenges, DXLG is refocusing on private brands, expanding FitMap technology, and making strategic pricing adjustments. The company plans to increase private brand penetration from 56.5% to over 65% by 2027.
With a P/S Ratio of 0.16 and an EV/EBITDA of 6.21, the market seems to be pricing in the challenges faced by DXLG. The company's focus on increasing private brand sales, which offer higher margins, is expected to drive future growth. Analysts estimate next year's revenue growth at -5.6%. DXLG's efforts to reduce costs and improve profitability are expected to yield positive results in the long term.
DXLG is closely monitoring the potential impact of tariffs, which are estimated to increase inventory costs by nearly $4 million in fiscal 2025. The company is exploring cost-saving measures and production shifts to offset this impact. Capital expenditures are expected to be around $5 to $10 million annually for maintenance purposes.
DXLG is shifting its marketing strategy from heavy promotion and direct marketing to a more subtle positioning approach, focusing on creating a positive in-store experience for customers. The company is not currently using in-store media for advertising or promotion, instead relying on in-store displays and highlighting its fit and size offerings for national brands alongside its private labels.
NOT ALL BRANDS FIT THE SAME: DXL'S NEW FITMAP® APP SCANNING TECHNOLOGY HELPS BIG + TALL MEN FIND THEIR PERFECT SIZE
Nov -19
Clothes That Actually Fit Florida Big + Tall Men Shouldn't Be A Crazy Idea, Right? DXL, Now Open In Pembroke Pines
Oct -01
Destination XL Group, Inc. (DXLG) Q2 2025 Earnings Call Transcript
Aug -27
Destination XL Group, Inc. to Announce Second Quarter 2025 Financial Results on Wednesday, August 27, 2025
Aug -13
Selma Welcomes DXL: Because Offering Big + Tall Men's Clothes That Fit Shouldn't Be Remarkable, But It Is
Jun -28
DXL, Now Open In Boca Raton: Clothes That Actually Fit Big + Tall Men Shouldn't Be A Crazy Idea, Right?
May -31
Destination XL Group, Inc. (DXLG) Q1 2025 Earnings Call Transcript
May -29
East Hanover Welcomes DXL: Because Offering Big + Tall Men's Clothes That Fit Shouldn't Be Remarkable, But It Is
May -28
Destination XL Group, Inc.'s 4.5% growth is driven by increasing demand for big and tall men's apparel, effective omnichannel strategy, and strategic store openings. Additionally, the company's focus on providing a wide range of products, excellent customer service, and loyalty programs contribute to its growth.
Destination XL Group, Inc.'s 5.5% growth is driven by increasing demand for big and tall men's apparel, effective marketing strategies, and expansion of e-commerce platforms. Additionally, the company's focus on providing a wide range of styles and sizes, as well as its loyalty program, contribute to customer retention and acquisition.
Destination XL Group, Inc. offers a wide range of casual apparel for men, including shirts, pants, jeans, and outerwear from popular brands.
The company offers a variety of dress shirts in different styles, fabrics, and sizes to fit men of all shapes and sizes.
Destination XL Group, Inc. sells a range of polo shirts from popular brands, offering a classic and versatile style for men.
The company offers a variety of outerwear, including jackets, coats, and vests, to keep men warm and stylish in different weather conditions.
Destination XL Group, Inc. specializes in providing clothing for big and tall men, offering a wide range of sizes to fit men of all shapes and sizes.
The company sells a variety of shoes, including dress shoes, boots, and casual shoes, to complement its clothing offerings.
Destination XL Group, Inc. faces moderate threat from substitutes as customers have limited alternatives for big and tall clothing, but online retailers and specialty stores offer some substitutes.
Destination XL Group, Inc. has a low bargaining power of customers as customers have limited options for big and tall clothing, and the company has a strong brand presence.
Destination XL Group, Inc. has a moderate bargaining power of suppliers as it relies on a few large suppliers for its products, but has some flexibility to switch suppliers if needed.
Destination XL Group, Inc. faces a low threat of new entrants as the market for big and tall clothing has high barriers to entry, including high startup costs and the need for specialized expertise.
Destination XL Group, Inc. operates in a highly competitive market with several established players, leading to a high intensity of rivalry among competitors.
| Value | |
|---|---|
| Debt Weight | 50.92% |
| Debt Cost | 3.95% |
| Equity Weight | 49.08% |
| Equity Cost | 10.83% |
| WACC | 7.32% |
| Leverage | 103.75% |
Value: 9.8
Growth: 2.8
Quality: 3.8
Yield: 6.0
Momentum: 1.5
Volatility: 1.3
1-Year Total Return ->
Value: 6.8
Growth: 1.7
Quality: 1.8
Yield: 0.0
Momentum: 8.5
Volatility: 2.7
1-Year Total Return ->
Value: 7.2
Growth: 3.0
Quality: 2.7
Yield: 0.0
Momentum: 6.0
Volatility: 2.3
1-Year Total Return ->
Value: 9.6
Growth: 3.9
Quality: 4.0
Yield: 0.0
Momentum: 0.0
Volatility: 2.3
1-Year Total Return ->
Value: 8.0
Growth: 4.4
Quality: 3.9
Yield: 0.0
Momentum: 0.5
Volatility: 1.0
1-Year Total Return ->
Value: 9.8
Growth: 1.0
Quality: 4.5
Yield: 0.0
Momentum: 0.5
Volatility: 0.7
1-Year Total Return ->