Destination XL Group, Inc. Reports First Quarter Financial Results
Rhea-AI Summary
Destination XL (NASDAQ: DXLG) reported Q1 fiscal 2026 sales of $103.3 million, down 2.1% year over year, with comparable sales down 3.8%.
The company posted a net loss of $5.9 million ($0.11 per diluted share), adjusted net loss of $0.06 per share, adjusted EBITDA of $(0.7) million, and cash and investments of $16.2 million with no debt.
Strategic initiatives include exclusive FiTMAP rights through 2030, rollout to 188 stores with over 100,000 users, and new AI investments in product data and discoverability.
AI-generated analysis. Not financial advice.
Positive
- Cash and investments of $16.2 million at May 2, 2026, with no debt
- Adjusted free cash flow improved to $(12.7) million from $(18.8) million year over year
- Operating cash outflow improved to $(8.8) million from $(12.0) million
- Inventory reduced to $81.4 million, with clearance at 9.9% of inventory
- Exclusive FiTMAP rights through 2030; technology rolled out in 188 stores with 100,000+ users
- Availability under credit facility of $70.0 million, up to liquidity needs
Negative
- Total sales declined 2.1% to $103.3 million; comparable sales down 3.8%
- Net loss widened to $5.9 million, or $(0.11) per diluted share
- Adjusted EBITDA fell to $(0.7) million from $0.2 million
- Gross margin rate decreased 80 basis points to 44.3%
- Cash and investments declined to $16.2 million from $29.1 million
- Transaction-related costs increased to $1.2 million from $0.1 million
Market Reaction – DXLG
Following this news, DXLG has gained 4.76%, reflecting a moderate positive market reaction. The stock is currently trading at $0.73. This price movement has added approximately $2M to the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
Before this report, DXLG was down 1.56% while peers were mixed: TLYS up 3.23%, DBGI down 28.51%, CATO down 1.59%, and AKA modestly lower. Momentum data show both an up-move in TLYS and a down-move in DBGI, pointing to stock-specific rather than sector-wide pressure for DXLG.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 19 | Q4 and FY2025 results | Negative | -4.9% | Reported FY2025 sales decline and substantial net loss with valuation allowance. |
| Dec 11 | Q3 2025 results | Negative | -26.9% | Challenging Q3 with lower sales, negative comps and adjusted EBITDA loss. |
| Dec 11 | Q3 timing change | Neutral | +44.4% | Rescheduled Q3 2025 release and call to post-market with webcast details. |
| Dec 03 | Q3 reschedule notice | Neutral | +5.6% | Announced new date and time for Q3 2025 earnings and conference call. |
| Aug 27 | Q2 2025 results | Negative | +0.8% | Q2 2025 sales decline and breakeven loss amid weak comps across channels. |
Earnings-related releases for DXLG have often coincided with negative price moves when results highlight declining sales and losses, though there have been sharp positive reactions around scheduling and timing announcements.
Over the last few quarters, DXLG’s earnings updates have highlighted declining sales and recurring net losses. Q2 and Q3 2025 results showed lower revenue and negative adjusted EBITDA, with shares reacting negatively, especially after the Dec 11, 2025 Q3 report. The Mar 19, 2026 full-year 2025 earnings also noted a sizeable valuation allowance and losses, again followed by a decline. In contrast, changes to earnings release timing in December 2025 produced strong positive moves, underscoring sensitivity to disclosure timing and expectations alongside fundamentals.
Historical Comparison
Past earnings and results updates for DXLG have produced an average move of about 3.79%, often skewing negative when sales and margins weaken, making today’s quarterly update directionally consistent with a market focused on fundamentals.
Recent earnings events trace continued softness in comps and profitability while management advances FiTMAP rollout, private-brand mix shifts, and the pending FullBeauty merger as key levers for longer-term improvement.
Market Pulse Summary
This announcement details Q1 2026 results with sales of $103.3M, a net loss of $5.9M, and adjusted EBITDA of $(0.7M), alongside lower cash of $16.2M. Management emphasizes FiTMAP rollout, AI investments, and responses to GLP-1-driven demand shifts, while acknowledging tariff and macro pressures. Investors monitoring this story may focus on comparable sales trends, margin impact from tariffs, cash flow progression, and updates on the pending FullBeauty merger in future quarters.
Key Terms
adjusted ebidta financial
non-gaap financial
free cash flow financial
credit facility financial
valuation allowance financial
glp-1 medical
ai technical
AI-generated analysis. Not financial advice.
Sales of
CANTON, Mass., June 03, 2026 (GLOBE NEWSWIRE) -- Destination XL Group, Inc. (NASDAQ: DXLG), the leading integrated-commerce specialty retailer of Big + Tall men’s clothing and footwear, today reported operating results for the first quarter of fiscal 2026.
First Quarter Financial Highlights
- Total sales for the first quarter were
$103.3 million , down2.1% from$105.5 million in the first quarter of fiscal 2025. Comparable sales for the first quarter of fiscal 2026 decreased3.8% as compared to the first quarter of fiscal 2025. - Net loss for the first quarter was
$(5.9) million , or$(0.11) per diluted share, as compared to a net loss of$(1.9) million , or$(0.04) per diluted share, for the first quarter of fiscal 2025. - Adjusted net loss (a non-GAAP measure) for the first quarter was
$(0.06) per diluted share as compared to an adjusted net loss of$(0.04) per diluted share for the first quarter of fiscal 2025. - Adjusted EBITDA (a non-GAAP measure) for the first quarter was
$(0.7) million as compared to$0.2 million for the first quarter of fiscal 2025. - Total cash and investments were
$16.2 million at May 2, 2026, as compared to$29.1 million at May 3, 2025, with no outstanding debt for either period.
Management’s Comments
“We are encouraged by our first quarter results, which reflect an improving sales performance and continued progress toward our strategic priorities. While comparable sales declined
Strategic Priorities:
We continue to advance several strategic initiatives designed to strengthen our market leadership in the big + tall sector while enhancing the customer experience across channels.
FiTMAP®
We have exclusive rights to our fit technology platform until 2030. FiTMAP® remains one of the Company’s most important long-term growth drivers. During the quarter, we completed the rollout of FiTMAP technology in 188 stores to enhance the customer journey. Since launch, over 100,000 customers have engaged with the platform, and early results continue to reinforce its value. Customers who use FiTMAP have demonstrated stronger conversion, higher average order values, greater purchase frequency and lower return rates, underscoring the role personalized fit can play in driving both customer satisfaction and profitable growth.
Leverage AI
We are sharpening our focus on artificial intelligence (“AI”) as consumer shopping behavior evolves. As AI-powered search and discovery tools become increasingly important in ecommerce, the Company is investing to ensure that its products and content are more visible, relevant and accessible in these emerging environments. During the quarter, DXL launched new AI initiatives to improve product data quality, enrich item-level attributes and strengthen its ability to connect product, pricing and inventory information across AI-enabled platforms. These efforts are intended to improve discoverability, support future commerce applications and position the Company to compete effectively as digital shopping journeys become more conversational and agent-driven.
GLP-1 Medications and Similar Weight-Loss Medications
We continue to deepen our understanding of how the use of glucagon-like peptide-1 (“GLP-1”) medications and similar weight-loss medications may be influencing customer behavior and category demand. Our research indicates that a meaningful portion of our customer base is currently using GLP-1 medications, contributing to more dynamic sizing needs over time. We are responding thoughtfully by broadening select assortments in smaller sizes and using customer insights to inform future merchandising, marketing and re-engagement strategies. Importantly, the Company sees this as both a near-term challenge and a long-term opportunity: while some customers may pause apparel purchases during periods of rapid size change, many express an intention to return once they reach a more stable size profile. By staying closely aligned with these evolving customer needs, we believe we can strengthen retention, reactivation and lifetime value over time.
Merger with FullBeauty Brands
In a separate press release issued today, the Company provided an update on the pending merger with FullBeauty Brands. To access the press release, please visit https://investor.dxl.com.
First Quarter Results
Sales
Total sales for the first quarter of fiscal 2026 were
The comparable sales decrease of
Gross Margin
For the first quarter of fiscal 2026, our gross margin rate, inclusive of occupancy costs, was
Our gross margin rate decreased by 80 basis points, driven by a decrease of 100 basis points in merchandise margin, partially offset by a 20-basis point decrease in occupancy costs. The decrease in merchandise margin as compared to the first quarter of fiscal 2025 is primarily due to the impact of tariffs, increased shipping costs as a result of fuel surcharges, and increased markdown activity associated with clearance sales. These increased costs were partially offset by an improvement in merchandise margins as a result of a shift in product mix toward our private brand merchandise and favorable loyalty costs.
The decrease in occupancy costs of 20 basis points, or
Tariffs
In April 2026, U.S. Customs and Border Protection ("CBP") launched an online portal through which companies may submit refund requests. During the first quarter of fiscal 2026, the Company submitted a claim seeking a refund of approximately
Given the volatility that currently exists around trade discussions, it is difficult to determine the potential impact that tariffs may have on our financial results for fiscal 2026. However, if currently enacted rates remain in effect throughout fiscal 2026, and no additional tariffs, including those under U.S. trade laws, are added, we estimate that the impact of tariffs on pre-tariff gross margin for fiscal 2026, exclusive of any refunds realized, will be approximately 100 basis points, a decrease from the previous estimate of 150 basis points.
Selling, General & Administrative
As a percentage of sales, SG&A (selling, general and administrative) expenses for the first quarter of fiscal 2026 were
On a dollar basis, SG&A expenses decreased by
Marketing costs were
Management views SG&A expenses through two primary cost centers: Customer Facing Costs and Corporate Support Costs. Customer Facing Costs, which include store payroll, marketing and other store and direct operating costs, represented
Transaction-Related Costs
Transaction-related costs for the first quarter of fiscal 2026 and fiscal 2025 were
Interest Income, Net
Net interest income for the first quarter of fiscal 2026 was
Income Taxes
Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any. Each quarter, we update our estimate of the annual effective tax rate and make a year-to-date adjustment to the provision.
For the first quarter of fiscal 2026, the Company's effective tax rate was (1.1)% as compared to an effective tax rate of
Net Loss
For the first quarter of fiscal 2026, net loss was
The decrease in earnings for the first quarter of fiscal 2026 as compared to first quarter of fiscal 2025 was driven primarily by a decrease in sales, an increase in transaction-related expenses and a decrease in the effective tax rate. We have fully reserved against our deferred tax assets and, therefore, the net loss in the first quarter of fiscal 2026 does not reflect a normal provision or benefit for income taxes for the Company.
On a non-GAAP basis, adjusting for a normal tax rate of
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP measure, for the first quarter of fiscal 2026 was
Cash Flow
Cash flow from operations for the first three months of fiscal 2026 was
Free cash flow, before capital expenditures for store development, a non-GAAP measure, was
Free cash flow, a non-GAAP measure, was
| For the Three Months Ended | ||||||||
| (in millions) | May 2, 2026 | May 3, 2025 | ||||||
| Cash flow from operating activities (GAAP basis) | $ | (8.8 | ) | $ | (12.0 | ) | ||
| Capital expenditures, excluding store development | (3.4 | ) | (2.4 | ) | ||||
| Free Cash Flow before capital expenditures for store development (non-GAAP basis) | $ | (12.3 | ) | $ | (14.5 | ) | ||
| Capital expenditures for store development | (0.4 | ) | (4.3 | ) | ||||
| Free Cash Flow (non-GAAP basis) | $ | (12.7 | ) | $ | (18.8 | ) | ||
Non-GAAP Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net loss, adjusted net loss per share, free cash flow before capital expenditures for store development and free cash flow are non-GAAP financial measures. Please see “Non-GAAP Measures” below and reconciliations of these non-GAAP measures to the comparable GAAP measures that follow in the tables below.
Balance Sheet & Liquidity
As of May 2, 2026, we had cash and investments of
As of May 2, 2026, our inventory decreased
Retail Store Information
The following is a summary of our retail square footage since the end of fiscal 2023 through the end of the first quarter of fiscal 2026:
| At May 2, 2026 | Year End 2025 | Year End 2024 | Year End 2023 | |||||||||||||||||||||
| # of Stores | Sq Ft. (000’s) | # of Stores | Sq Ft. (000’s) | # of Stores | Sq Ft. (000’s) | # of Stores | Sq Ft. (000’s) | |||||||||||||||||
| DXL retail | 257 | 1,843 | 258 | 1,853 | 247 | 1,795 | 232 | 1,725 | ||||||||||||||||
| DXL outlets | 17 | 86 | 17 | 86 | 15 | 76 | 15 | 76 | ||||||||||||||||
| CMXL retail | 5 | 15 | 5 | 15 | 8 | 25 | 17 | 55 | ||||||||||||||||
| CMXL outlets | 14 | 41 | 15 | 44 | 18 | 54 | 19 | 57 | ||||||||||||||||
| Total | 293 | 1,985 | 295 | 1,998 | 288 | 1,950 | 283 | 1,913 | ||||||||||||||||
During the first three months of fiscal 2026, we closed one DXL retail store and one Casual Male XL outlet store. We expect our capital expenditures for fiscal 2026 to range from
Digital Commerce Information
We distribute our national brands and private brand merchandise directly to consumers through our stores, website, app, and third-party marketplaces. Digital commerce sales, which we also refer to as direct sales, are defined as sales that originate online, whether through our website, at the store level or through a third-party marketplace. Our direct business is a critical component of our business and an area of significant growth opportunity for us. For the first quarter of fiscal 2026, our direct sales were
Conference Call
The Company will hold a conference call to review its financial results on Wednesday, June 3, 2026 at 9:00 a.m. ET. An investor presentation with additional details on the transaction can be found at https://investor.dxl.com.
To participate in the live webcast, please pre-register at:
https://register-conf.media-server.com/register/BI5ae665897d864e8da0f0d4edcae59a76
Upon registering, you will be emailed a dial-in number, and unique PIN.
For listen-only, please join and register at: https://edge.media-server.com/mmc/p/m5iyuyet. An archived version of the webcast may be accessed by visiting the "Events" section of the Company's investor relations website for up to one year.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
Non-GAAP Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains non-GAAP financial measures, including adjusted net loss, adjusted net loss per diluted share, adjusted EBITDA, adjusted EBITDA margin, free cash flow before capital expenditures for store development, and free cash flow. The presentation of these non-GAAP measures is not in accordance with GAAP and should not be considered superior to or as a substitute for net loss, net loss per diluted share or cash flows from operating activities or any other measure of performance derived in accordance with GAAP. In addition, not all companies calculate non-GAAP financial measures in the same manner and, accordingly, the non-GAAP measures presented in this release may not be comparable to similar measures used by other companies. The Company believes the inclusion of these non-GAAP measures help investors gain a better understanding of the Company’s performance, especially when comparing such results to previous periods, and that they are useful as an additional means for investors to evaluate the Company's operating results when reviewed in conjunction with the Company's GAAP financial statements. Reconciliations of these non-GAAP measures to their comparable GAAP measures are provided in the tables below.
Adjusted net loss and adjusted net loss per diluted share reflect an adjustment assuming a normal tax rate of
Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization and adding back transaction-related expenses. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by total sales. The Company believes that providing adjusted EBITDA and adjusted EBITDA margin is useful to investors to evaluate the Company’s performance and are key metrics to measure profitability and economic productivity.
Free cash flow is a metric that management uses to monitor liquidity. Management believes this metric is important to investors because it demonstrates the Company’s ability to strengthen liquidity while supporting its capital projects and new store development. Free cash flow is calculated as cash flow from operating activities, less capital expenditures and excludes the mandatory and discretionary repayment of debt. Free cash flow before capital expenditures for store development is calculated as cash flow from operating activities less capital expenditures other than capital expenditures for store development. Capital expenditures for store development includes capital expenditures for new stores, conversions of Casual Male XL stores to DXL and remodels. Capital expenditures related to store relocations and maintenance are not included in store development.
About Destination XL Group, Inc.
Destination XL Group, Inc. is the leading retailer of Men’s Big + Tall apparel that provides the Big + Tall man the freedom to choose his own style. Subsidiaries of Destination XL Group, Inc. operate DXL Big + Tall retail and outlet stores and Casual Male XL retail and outlet stores throughout the United States, and an e-commerce website, DXL.COM, and mobile app, which offer a multi-channel solution similar to the DXL store experience with the most extensive selection of online products available anywhere for Big + Tall men. The Company is headquartered in Canton, Massachusetts, and its common stock is listed on the Nasdaq Global Market under the symbol "DXLG." For more information, please visit the Company's investor relations website: https://investor.dxl.com.
Forward-Looking Statements
Certain statements and information contained in this press release constitute forward-looking statements under the federal securities laws, including statements regarding our belief that first quarter results reflect an improving performance and continued progress toward our strategic priorities; our belief that the higher conversion rates and increased average order value across both stores and online reinforce that the adjustments we are making to our merchandise assortment, promotional strategy, and customer experience are aligning better with today’s value-conscious consumer; our belief that AI-powered search and discovery tools are becoming increasingly important in ecommerce; our belief that the new AI initiatives that were launched will improve product data quality, enrich item-level attributes and strengthen our ability to connect product, pricing and inventory information across AI-enabled platforms; our intention that our AI initiatives will improve discoverability, support future commerce applications and position us to compete effectively as digital shopping journeys become more conversational and agent-driven; our belief that GLP-1 medications provide both a near-term challenge and a long-term opportunity: our belief that the impact of GLP-1 medications and similar weight loss medications are contributing to structural changes in customer demand within the big + tall category; our belief based on our research that while some customers may pause apparel purchases during periods of rapid size change, we expect them to return once they reach a more stable size profile; our belief that we can strengthen retention, reactivation and lifetime value over time by staying closely aligned with evolving customer needs; our belief that the slowdown in April reflects a combination of macroeconomic pressures impacting consumer confidence and discretionary spending, including global conflict, rising fuel costs, and inflation; our expectation that the impact of tariffs on gross margin, exclusive of any refunds realized, will be approximately 100 basis points, a decrease from the previous estimate of 150 basis points; our expectation that for fiscal 2026, marketing costs will be approximately
The discussion of forward-looking information requires the management of the Company to make certain estimates and assumptions regarding the Company's strategic direction and the effect of such plans on the Company's financial results. The Company's actual results and the implementation of its plans and operations may differ materially from forward-looking statements made by the Company. The Company encourages readers of forward-looking information concerning the Company to refer to its filings with the Securities and Exchange Commission, including without limitation, its Annual Report on Form 10-K filed on March 19, 2026, its Amendment No. 1 to Annual Report on Form 10-K/A filed on May 26, 2026, its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission that set forth certain risks and uncertainties that may have an impact on future results and the direction of the Company, including risks relating to changes in consumer spending in response to economic factors; the impact of inflation with rising costs and high interest rates; the impact of tariffs; the impact of ongoing worldwide conflicts on the global economy; potential labor shortages; and the Company’s ability to grow its market share, predict customer tastes and fashion trends, forecast sales growth trends, and compete successfully in the U.S. men’s big and tall apparel market.
Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The Company undertakes no obligation and expressly disclaims any duty to update such statements.
Additional Information About the Merger and Where to Find It
In connection with the merger with FullBeauty Brands, we intend to file a proxy statement (the “Proxy Statement”), which will be distributed to our stockholders in connection with their votes on the issuance of our common stock in the merger. Investors and security holders are encouraged to read the Proxy Statement when it becomes available (and any other documents filed with the SEC in connection with the merger or incorporated by reference into the Proxy Statement) because such documents will contain important information regarding the merger and related matters. Investors and security holders will be able to obtain these documents, and any other documents we have filed with the SEC, free of charge at the SEC’s website, www.sec.gov, or by accessing our website at investor.dxl.com. In addition, documents filed with the SEC by us will be available free of charge by writing to us at 555 Turnpike Street, Canton, Massachusetts 02021, Attention: Corporate Secretary.
Participants in the Solicitation
We and certain of our directors and executive officers may be deemed to be participants in the solicitation of proxies from our stockholders in connection with the merger with FullBeauty Brands. Information about our directors and executive officers, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in our proxy statement for our Form 10-K/A, which was filed with the SEC on May 26, 2026, including under the headings “Director Compensation,” “Compensation Discussion and Analysis,” “Executive Compensation,” “Security Ownership of Management.” To the extent holdings of our common stock by our directors and executive officers have changed from the amounts of our common stock held by such persons as reflected therein, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3, Statements of Changes in Beneficial Ownership on Form 4 or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5, in each case filed with the SEC, including the Form 4s filed by each of the non-executive directors on August 6, 2025, the Form 4s filed by each of the executive officers on September 3, 2025, the Form 4s filed by each of the non-executive directors on November 5, 2025, the Form 4s filed by each of the non-executive directors on February 4, 2026, the Form 4s filed by each of the executive officers on April 3, 2026 and the Form 4s filed by each of the non-executive directors on May 6, 2026. FullBeauty Brands and its chief executive officer may be deemed to be participants in the solicitation of proxies from our stockholders in connection with the merger. Information about FullBeauty Brands and its chief executive officer was included as Exhibit 99.9 to our Current Report on Form 8-K filed on December 11, 2025. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement regarding the merger when it becomes available. Free copies of this document may be obtained as described above.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.
Investor Relations Contact:
investor.relations@dxlg.com
(603) 933-0541
Destination XL Group Media Contact:
Aaron Palash / Michael Reilly / Carly King
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
| DESTINATION XL GROUP, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (In thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| For the Three Months Ended | ||||||||
| May 2, 2026 | May 3, 2025 | |||||||
| Sales | $ | 103,335 | $ | 105,533 | ||||
| Cost of goods sold including occupancy | 57,583 | 57,951 | ||||||
| Gross profit | 45,752 | 47,582 | ||||||
| Expenses: | ||||||||
| Selling, general and administrative | 46,482 | 47,380 | ||||||
| Transaction-related costs | 1,241 | 63 | ||||||
| Depreciation and amortization | 3,968 | 3,636 | ||||||
| Total expenses | 51,691 | 51,079 | ||||||
| Operating loss | (5,939 | ) | (3,497 | ) | ||||
| Interest income, net | 62 | 284 | ||||||
| Loss before provision (benefit) for income taxes | (5,877 | ) | (3,213 | ) | ||||
| Provision (benefit) for income taxes | 62 | (1,274 | ) | |||||
| Net loss | $ | (5,939 | ) | $ | (1,939 | ) | ||
| Net loss per share: | ||||||||
| Basic | $ | (0.11 | ) | $ | (0.04 | ) | ||
| Diluted | $ | (0.11 | ) | $ | (0.04 | ) | ||
| Weighted-average number of common shares outstanding: | ||||||||
| Basic | 54,916 | 53,601 | ||||||
| Diluted | 54,916 | 53,601 | ||||||
| DESTINATION XL GROUP, INC. | ||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| May 2, 2026, January 31, 2026 and May 3, 2025 | ||||||||||||
| (In thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| May 2, | January 31, | May 3, | ||||||||||
| 2026 | 2026 | 2025 | ||||||||||
| ASSETS | ||||||||||||
| Cash and cash equivalents | $ | 11,098 | $ | 23,807 | $ | 8,082 | ||||||
| Short-term investments | 5,078 | 5,029 | 20,999 | |||||||||
| Inventories | 81,394 | 73,522 | 85,462 | |||||||||
| Other current assets | 11,277 | 8,608 | 10,342 | |||||||||
| Property and equipment, net | 58,301 | 60,010 | 58,946 | |||||||||
| Operating lease right-of-use assets | 197,078 | 194,068 | 174,103 | |||||||||
| Intangible assets | 1,150 | 1,150 | 1,150 | |||||||||
| Deferred tax assets, net of valuation allowance | — | — | 20,505 | |||||||||
| Other assets | 744 | 753 | 488 | |||||||||
| Total assets | $ | 366,120 | $ | 366,947 | $ | 380,077 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Accounts payable | $ | 30,064 | $ | 22,941 | $ | 30,817 | ||||||
| Accrued expenses and other liabilities | 20,403 | 26,685 | 21,214 | |||||||||
| Operating leases | 213,083 | 209,227 | 187,337 | |||||||||
| Stockholders' equity | 102,570 | 108,094 | 140,709 | |||||||||
| Total liabilities and stockholders' equity | $ | 366,120 | $ | 366,947 | $ | 380,077 | ||||||
| CERTAIN COLUMNS IN THE FOLLOWING TABLES MAY NOT FOOT DUE TO ROUNDING GAAP TO NON-GAAP RECONCILIATION OF ADJUSTED NET LOSS AND ADJUSTED NET LOSS PER DILUTED SHARE (unaudited) | ||||||||||||||||
| For the Three Months Ended | ||||||||||||||||
| May 2, 2026 | May 3, 2025 | |||||||||||||||
| $ | Per diluted share | $ | Per diluted share | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Net loss (GAAP) | $ | (5,939 | ) | $ | (0.11 | ) | $ | (1,939 | ) | $ | (0.04 | ) | ||||
| Add back: | ||||||||||||||||
| Transaction-related costs | 1,241 | 63 | ||||||||||||||
| Actual provision (benefit) for income taxes | 62 | (1,274 | ) | |||||||||||||
| $ | (4,636 | ) | $ | (3,150 | ) | |||||||||||
| Income tax benefit, assuming a normalized tax rate of | (1,205 | ) | (819 | ) | ||||||||||||
| Adjusted net loss (non-GAAP) | $ | (3,431 | ) | $ | (0.06 | ) | $ | (2,331 | ) | $ | (0.04 | ) | ||||
| Weighted average number of common | ||||||||||||||||
| shares outstanding on a diluted basis | 54,916 | 53,601 | ||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (unaudited) | ||||||||
| For the Three Months Ended | ||||||||
| May 2, 2026 | May 3, 2025 | |||||||
| (in millions) | ||||||||
| Net loss (GAAP) | $ | (5.9 | ) | $ | (1.9 | ) | ||
| Add back: | ||||||||
| Transaction-related expenses | 1.2 | 0.1 | ||||||
| Provision (benefit) for income taxes | 0.1 | (1.3 | ) | |||||
| Interest income, net | (0.1 | ) | (0.3 | ) | ||||
| Depreciation and amortization | 4.0 | 3.6 | ||||||
| Adjusted EBITDA (non-GAAP) | $ | (0.7 | ) | $ | 0.2 | |||
| Sales | $ | 103.3 | $ | 105.5 | ||||
| Adjusted EBITDA margin (non-GAAP), as a percentage of sales | (0.7 | %) | 0.2 | % | ||||
| GAAP TO NON-GAAP RECONCILIATION OF FREE CASH FLOW (unaudited) | ||||||||
| For the Three Months Ended | ||||||||
| (in millions) | May 2, 2026 | May 3, 2025 | ||||||
| Cash flow from operating activities (GAAP basis) | $ | (8.8 | ) | $ | (12.0 | ) | ||
| Capital expenditures, excluding store development | (3.4 | ) | (2.4 | ) | ||||
| Free Cash Flow before capital expenditures for store development (non-GAAP basis) | $ | (12.3 | ) | $ | (14.5 | ) | ||
| Capital expenditures for store development | (0.4 | ) | (4.3 | ) | ||||
| Free Cash Flow (non-GAAP basis) | $ | (12.7 | ) | $ | (18.8 | ) | ||
