Destination XL Group, Inc. Reports Fiscal 2025 Fourth Quarter and Full-Year Financial Results
Rhea-AI Summary
Destination XL Group (NASDAQ: DXLG) reported Q4 sales of $112.1M (down 6.0%) and fiscal 2025 sales of $435.0M (down 6.9%). Q4 net loss was $29.6M; fiscal net loss was $35.9M, which included a $20.4M non-cash valuation allowance. Cash and investments totaled $28.8M with no debt.
The company expects a merger with FullBeauty Brands to close in Q2 FY2026, targeting a combined ~$1.2B revenue run-rate and $25M annual cost synergies.
Positive
- Planned merger with FullBeauty expected to create ~$1.2B combined revenue
- $25M projected annual run-rate cost synergies from the merger
- Balance sheet strength: no debt and $28.8M in cash and investments
Negative
- Comparable sales down 8.4% for fiscal 2025
- Net loss of $35.9M for fiscal 2025, including a $20.4M valuation allowance
- Gross margin declined ~310 bps year-over-year for fiscal 2025
News Market Reaction – DXLG
In the Mar 19 session, DXLG declined 4.94%, reflecting a moderate negative market reaction. Argus tracked a peak move of +42.9% during that session. Argus tracked a trough of -8.5% from its starting point during tracking. Our momentum scanner triggered 16 alerts that day, indicating notable trading interest and price volatility. Trading volume was exceptionally heavy at 17.8x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 11 | Q3 2025 earnings | Negative | -26.9% | Soft Q3 sales, net loss and negative Adjusted EBITDA alongside merger disclosure. |
| Dec 11 | Earnings timing change | Neutral | +44.4% | Rescheduled Q3 2025 results and call to post‑market on December 11. |
| Dec 03 | Earnings reschedule | Neutral | +5.6% | Pushed back Q3 2025 release and call by one week to December 11. |
| Aug 27 | Q2 2025 earnings | Negative | +0.8% | Challenging Q2 with lower sales, negative comps and reduced Adjusted EBITDA. |
| May 29 | Q1 2025 earnings | Negative | +10.2% | Q1 sales decline and swing to loss despite solid cash and inventory metrics. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings and timing-related announcements have often produced divergent reactions, with several negative or neutral updates followed by positive price moves, and only one clearly negative earnings print aligning with a sharp selloff.
Over the past year, DXLG’s earnings cycle has highlighted softening fundamentals: Q1–Q3 2025 saw declining sales, mounting losses and pressured comparable sales, even as the balance sheet remained debt-free. Management repeatedly emphasized private-brand expansion and FiTMAP® rollout, while extending credit capacity. December 2025 marked a key pivot with Q3 results paired to the FullBeauty merger announcement. Subsequent holiday sales data confirmed ongoing demand pressure. Today’s Q4/FY25 release continues that narrative of revenue declines and margin compression alongside strategic repositioning and the pending FullBeauty combination.
Key Terms
adjusted EBITDA financial
non-GAAP financial
valuation allowance financial
deferred tax assets financial
net operating loss carryforwards financial
term loan financial
deferred stock units financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Merger with FullBeauty Brands expected to close in second quarter of Fiscal 2026
CANTON, Mass., March 19, 2026 (GLOBE NEWSWIRE) -- Destination XL Group, Inc. (NASDAQ: DXLG), the largest integrated commerce specialty retailer of Big + Tall men’s clothing and footwear, today reported financial results for the fourth quarter and fiscal year 2025, ending January 31, 2026.
Fourth Quarter Highlights
- Total sales for the fourth quarter were
$112.1 million , down6.0% from$119.2 million for the fourth quarter of fiscal 2024. Comparable sales for the fourth quarter decreased7.3% as compared to the fourth quarter of fiscal 2024. - Net loss for the fourth quarter was
$(29.6) million , or$(0.54) per diluted share, as compared to a net loss of$(1.3) million , or$(0.02) per diluted share, for the fourth quarter of fiscal 2024. Results for the fourth quarter of fiscal 2025 included a non-cash charge of$20.4 million to establish a full valuation allowance against net deferred tax assets. - Adjusted net income (loss) (a non-GAAP measure) for the fourth quarter was
$(0.10) per diluted share as compared to$0.02 per diluted share for the fourth quarter of fiscal 2024. - Adjusted EBITDA (a non-GAAP measure) was
$(1.8) million for the fourth quarter as compared to$4.2 million for the fourth quarter of fiscal 2024.
Fiscal 2025 Highlights
- Total sales for fiscal 2025 were
$435.0 million as compared to$467.0 million for fiscal 2024. Comparable sales decreased8.4% as compared to fiscal 2024. - Net income (loss) was
$(35.9) million , or$(0.66) per diluted share, as compared to$3.1 million , or$0.05 per diluted share, in fiscal 2024. Results for fiscal 2025 included a non-cash charge of$20.4 million to establish a full valuation allowance against net deferred tax assets. - Adjusted net income (loss) (a non-GAAP measure) was
$(0.21) per diluted share for fiscal 2025 as compared to$0.07 per diluted share for fiscal 2024. - Adjusted EBITDA (a non-GAAP measure) was
$1.6 million as compared to$19.9 million for fiscal 2024. - As of January 31, 2026, total cash and investments were
$28.8 million as compared to$48.4 million at February 1, 2025, with no outstanding debt for either period.
Management Comments
“Our fourth quarter comparable sales through the holiday season and into early January were down
“Fiscal 2025 as a whole reflects the ongoing challenges facing the big + tall retail sector. Traffic remained soft, consumer sentiment was cautious, and customers shopped less frequently, often prioritizing essentials and lower price points. In response, we stayed disciplined. We tightly managed expenses, proactively controlled inventory, and protected margins. As a result, we exited fiscal 2025 with a clean inventory position, no debt, and approximately
“At the same time, we made meaningful progress on the strategic initiatives that matter most to our customers and our future. We expanded our private brand offerings, sharpened our value-driven national brand assortment, rolled out FiTMAP® more broadly across the chain, launched a new loyalty program, and significantly deepened our strategic relationship with Nordstrom. Operationally, we continued to diversify our sourcing base and drove cost efficiencies to help offset tariff pressures.”
“As previously announced, we remain excited about our planned merger with FullBeauty Brands and are on track to close the transaction in the second quarter of fiscal 2026. This merger creates a scaled, category-defining retailer for inclusive apparel, which we expect will generate
Strategic Priorities:
Assortment
Over the next two years, we are strategically evolving our assortment to further prioritize private brands, which deliver consistent fit, greater flexibility to balance trend-right fashion with core essentials, and enhanced value for our customers while generating higher margins for DXL. To support this shift, we are reducing investment in underperforming national brands, enabling us to improve profitability and more effectively deploy strategic promotions to drive customer acquisition and sales growth.
Our objective is to increase private-brand penetration from approximately
FiTMAP® Technology
Over the past three years, we have developed and tested our proprietary FiTMAP® sizing technology, for which we hold an exclusive license for big + tall men until 2030. This innovative, contactless digital scanning solution captures 243 unique measurements and delivers personalized size recommendations across 29 brands, simplifying the purchase process and reducing friction for our customers.
FiTMAP also creates opportunities to offer custom apparel through a digital platform, further enhancing fit and personalization. We believe it is one of the most comprehensive sizing technology available in the big + tall market and provides a differentiated experience across both ready-to-wear and custom offerings. To date, we have scanned more than 63,000 customers.
At the end of fiscal 2025, FiTMAP was available in 121 DXL retail locations and through our mobile app. As of today, FiTMAP is live in 188 stores, completing our initial rollout. We believe the technology has delivered measurable benefits, transforming how customers engage with fit and reinforcing DXL’s position as a technology leader in the big + tall category.
Promotional Strategy
We continue to refine our promotional approach with a more disciplined, strategic framework that emphasizes relevance, competitiveness, and a stronger perception of value. Promotions are now managed as a distinct category, with clear objectives around timing, product focus, and customer targeting. This approach is designed to maximize the return on every markdown dollar, support key strategic priorities, and strengthen brand equity while driving engagement and sales.
Merger with FullBeauty Brands
On December 11, 2025, we announced that we had entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Divine Merger Sub I, Inc., a Delaware corporation and wholly owned direct subsidiary of our company (“Merger Sub”), and FBB Holdings I, Inc., a Delaware corporation (“FBB” or “FullBeauty”). The Merger Agreement provides that, on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into FBB, with FBB continuing as the surviving corporation as a wholly owned subsidiary of our company (the “Merger”). FullBeauty, a private company with sales for the 53 weeks ended January 3, 2026 of approximately
The transaction is expected to close in the second quarter of fiscal 2026, subject to customary closing conditions and approval by DXL stockholders.
Fourth Quarter and Fiscal 2025 Results
Sales
For the fourth quarter of fiscal 2025, total sales were
For fiscal 2025, total sales decreased
Through the first month of fiscal 2026, we have seen improvement in traffic and average order value, both of which contributed to an improvement in sales during February. Comparable sales in February were down
Gross Margin
For the fourth quarter of fiscal 2025, gross margin, inclusive of occupancy costs, was
For fiscal 2025, gross margin, inclusive of occupancy costs, was
For the fourth quarter and fiscal 2025, the impact of tariffs on merchandise margins was estimated to be approximately 110 basis points and 50 basis points, as a percentage of sales, respectively.
There remains significant volatility with respect to evolving trade policies and the enactment of additional tariffs globally. Through vendor negotiations, sourcing diversification and cost mitigation programs, such as the First Sale program, we have and plan to continue to take proactive measures to mitigate the impact of tariffs and trade restrictions on our business and our customers. Given the volatility that currently exists around these trade discussions, including the recent U.S. Supreme Court ruling and the current administration's announcement of new tariffs, it is difficult to determine the potential impact that these tariffs may have on our financial results for fiscal 2026. However, if currently enacted rates remain in effect throughout fiscal 2026 and no new tariffs are added, we estimate that the impact of tariffs on gross margin will be approximately 150 basis points.
Selling, General & Administrative
SG&A expenses for the fourth quarter of fiscal 2025 were
On a dollar basis, SG&A expenses decreased by
For fiscal 2025, 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 operating costs, represented
Transaction-Related Costs
Transaction-related costs for the fourth quarter and fiscal 2025 were
Interest Income, Net
Net interest income for the fourth quarter of fiscal 2025 was
Income Taxes
In the fourth quarter of fiscal 2025, we recorded a charge of
The effective tax rate for the fourth quarter and fiscal 2025, before the
Net Income (Loss)
Net loss for the fourth quarter of fiscal 2025 was
Net loss for fiscal 2025 was
Results for the fourth quarter and fiscal 2025 included the
On a non-GAAP basis, adjusting for the charge to establish a full valuation allowance, transaction-related costs, accrual for estimated non-recurring legal settlement costs, and asset impairments, adjusted net loss for the fourth quarter of fiscal 2025 was
Adjusted EBITDA
Earnings before interest, taxes, depreciation and amortization, adjusted for the transaction-related costs, accrual for estimated non-recurring legal settlement costs, and impairment (gain) of assets, if any ("adjusted EBITDA"), a non-GAAP measure, for the fourth quarter of fiscal 2025 were
Cash Flow
Cash flow from operations for fiscal 2025 was
Free cash flow, before capital expenditures for store development, a non-GAAP measure, was
| (in millions) | Fiscal 2025 | Fiscal 2024 | |||||
| Cash flow from operating activities (GAAP basis) | $ | 2.1 | $ | 29.6 | |||
| Capital expenditures, excluding store development | (11.3 | ) | (14.5 | ) | |||
| Free Cash Flow before capital expenditures for store development (non-GAAP basis) | $ | (9.2 | ) | $ | 15.1 | ||
| Capital expenditures for store development | (8.8 | ) | (13.2 | ) | |||
| Free cash flow (non-GAAP basis) | $ | (18.0 | ) | $ | 1.9 | ||
Non-GAAP Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted net income (loss) per diluted 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 for reconciliations of these non-GAAP measures to the comparable GAAP measures that follow in the tables below.
Balance Sheet & Liquidity
As of January 31, 2026, we had cash and investments of
Inventory at January 31, 2026 decreased
Store Information
The following is a summary of our retail square footage for the past three years:
| 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) | |||||||||||||
| DXL retail | 258 | 1,853 | 247 | 1,795 | 232 | 1,725 | ||||||||||||
| DXL outlets | 17 | 86 | 15 | 76 | 15 | 76 | ||||||||||||
| CMXL retail | 5 | 15 | 8 | 25 | 17 | 55 | ||||||||||||
| CMXL outlets | 15 | 44 | 18 | 54 | 19 | 57 | ||||||||||||
| Total | 295 | 1,998 | 288 | 1,950 | 283 | 1,913 | ||||||||||||
During fiscal 2025, we opened eight new DXL stores, converted two Casual Male XL retail stores and one Casual Male XL outlet to DXL retail stores and two Casual Male XL outlets to DXL outlets, and closed one Casual Male XL retail store.
For fiscal 2026, we expect our capital expenditures to range from
Digital Commerce Sales
We distribute our national brands and our own 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 fiscal 2025, our direct sales were
Conference Call
The Company will hold a conference call to review its financial results on Thursday, March 19, 2026, at 9:00 a.m. ET.
To participate in the live webcast, please pre-register at: https://register-conf.media-server.com/register/BIad670bb4222b4f95be7c5aa56a774e30. 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/x69nmy8s. 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 income (loss), adjusted net income (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 income (loss), net income (loss) per diluted share or cash flow 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 income (loss) and adjusted net income (loss) per diluted share are calculated by excluding any asset impairment charge (gain), transaction-related costs, and accrual for estimated non-recurring legal settlement costs on a tax-effected basis using the applicable effective tax rate for the respective period. The accrual for estimated non-recurring legal settlement costs is excluded from adjusted net income (loss) due to the difficulty in predicting its timing. The Company believes that this comparability is useful in comparing the actual results period to period. Adjusted net income per diluted share is then calculated by dividing the adjusted net income by the weighted average shares outstanding for the respective period on a diluted basis.
Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization and adjusted for, accrual for estimated non-recurring legal settlement costs, transaction-related costs and asset impairment charge (gain), if any. 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 the sales momentum in January was interrupted by a severe Arctic weather event that impacted much of the country during the final two weeks of January, which created widespread disruption across our nearly 300 store fleet, materially pressured our quarterly results, and reduced our quarterly comparable sales; our belief that 2026 is off to a better start with comparable sales for the month of February down
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. We undertake no obligation and expressly disclaim any duty to update such statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. For example, these forward-looking statements could be affected by factors, including, without limitation, risks relating to the challenging macroeconomic environment, including volatility and changes in global trade policies; changes in consumer spending in response to the economic factors; the impact of tariffs and the ability to mitigate exposure and maintain supply; the impact of ongoing worldwide conflicts on the global economy; the impact of GLP-1s and similar weight-loss medications; our 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 + tall apparel market; risks associated with the ability to consummate the Merger and the timing of the closing of the Merger; the customary closing conditions leading to the completion of the Merger, including our stockholder approval; the ability to successfully integrate and scale our operations and employees; the ability and timing to realize anticipated benefits and synergies of the Merger; the potential impact of the announcement, pendency or consummation of the Merger on relationships, including with employees, customers, credit rating agencies, suppliers and competitors; the ability to retain key personnel; changes in financial markets; negative rating agency actions; the outcome of any legal proceedings that may be instituted against us or FullBeauty; the risk that any announcements relating to the Merger could have adverse effects on the market price of our common stock; diversion of management’s attention from ongoing business operations and opportunities; risks associated with volatility in the market price of the our common stock, the our ability to implement corporate actions such as a reverse stock split and those additional risks and factors that will be detailed in a proxy statement that we expect will be distributed to our stockholders during the second half of fiscal 2026 in connection with their votes on the issuance of our common stock in the Merger and other reports filed by us with the Securities and Exchange Commission ("SEC") from time to time, including those discussed under the heading “Risk Factors” in our most recently filed Annual Report on Form 10-K. These documents are available through our website or through the SEC’s Electronic Data Gathering and Analysis Retrieval (EDGAR) system at http://www.sec.gov. Neither us nor FullBeauty undertakes any duty to update any forward-looking statements contained herein, whether as a result of new information or developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.
Additional Information About the Merger and Where to Find It
In connection with the Merger, 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. 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 2025 annual meeting of stockholders, which was filed with the SEC on June 30, 2025, 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, November 5, 2025 and February 4, 2026 and the Form 4s filed by each of the executive officers on September 3, 2025.
FullBeauty 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 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 | For the fiscal year ended | ||||||||||||||
| January 31, 2026 | February 1, 2025 | January 31, 2026 | February 1, 2025 | ||||||||||||
| Sales | $ | 112,100 | $ | 119,203 | $ | 435,017 | $ | 467,015 | |||||||
| Cost of goods sold, including occupancy | 66,412 | 66,300 | 246,030 | 249,820 | |||||||||||
| Gross profit | 45,688 | 52,903 | 188,987 | 217,195 | |||||||||||
| Expenses: | |||||||||||||||
| Selling, general and administrative | 47,490 | 49,688 | 187,377 | 198,282 | |||||||||||
| Transaction-related costs | 3,577 | — | 4,228 | — | |||||||||||
| Impairment of assets | 210 | 1,303 | 210 | 1,303 | |||||||||||
| Depreciation and amortization | 4,057 | 3,646 | 15,331 | 13,878 | |||||||||||
| Total expenses | 55,334 | 54,637 | 207,146 | 213,463 | |||||||||||
| Operating income (loss) | (9,646 | ) | (1,734 | ) | (18,159 | ) | 3,732 | ||||||||
| Interest income, net | 185 | 411 | 810 | 2,084 | |||||||||||
| Income (loss) before provision (benefit) for income taxes | (9,461 | ) | (1,323 | ) | (17,349 | ) | 5,816 | ||||||||
| Provision (benefit) for income taxes | 20,123 | (7 | ) | 18,559 | 2,761 | ||||||||||
| Net income (loss) | $ | (29,584 | ) | $ | (1,316 | ) | $ | (35,908 | ) | $ | 3,055 | ||||
| Net income (loss) per share - basic | $ | (0.54 | ) | $ | (0.02 | ) | $ | (0.66 | ) | $ | 0.05 | ||||
| Net income (loss) per share - diluted | $ | (0.54 | ) | $ | (0.02 | ) | $ | (0.66 | ) | $ | 0.05 | ||||
| Weighted-average number of common shares outstanding: | |||||||||||||||
| Basic | 54,655 | 53,712 | 54,104 | 56,779 | |||||||||||
| Diluted | 54,655 | 53,712 | 54,104 | 59,590 | |||||||||||
| DESTINATION XL GROUP, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| January 31, 2026 and February 1, 2025 | |||||||
| (In thousands) | |||||||
| Unaudited | |||||||
| January 31, | February 1, | ||||||
| 2026 | 2025 | ||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 23,807 | $ | 11,901 | |||
| Short-term investments | 5,029 | 36,516 | |||||
| Inventories | 73,522 | 75,486 | |||||
| Other current assets | 8,608 | 7,984 | |||||
| Property and equipment, net | 60,010 | 56,982 | |||||
| Operating lease right-of-use assets | 194,068 | 171,084 | |||||
| Deferred income taxes, net of valuation allowance | — | 19,343 | |||||
| Intangible assets | 1,150 | 1,150 | |||||
| Other assets | 753 | 509 | |||||
| Total assets | $ | 366,947 | $ | 380,955 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Accounts payable | $ | 22,941 | $ | 24,344 | |||
| Accrued expenses and other liabilities | 26,685 | 30,773 | |||||
| Operating leases | 209,227 | 184,615 | |||||
| Stockholders' equity | 108,094 | 141,223 | |||||
| Total liabilities and stockholders' equity | $ | 366,947 | $ | 380,955 | |||
| CERTAIN COLUMNS IN THE FOLLOWING TABLES MAY NOT FOOT DUE TO ROUNDING | |||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION OF ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (Unaudited) | |||||||||||||||
| For the three months ended | For the fiscal year ended | ||||||||||||||
| January 31, 2026 | February 1, 2025 | January 31, 2026 | February 1, 2025 | ||||||||||||
| (in millions, except margin percentages) | |||||||||||||||
| Net income (loss) (GAAP basis) | $ | (29.6 | ) | $ | (1.3 | ) | $ | (35.9 | ) | $ | 3.1 | ||||
| Add back: | |||||||||||||||
| Transaction-related costs | 3.6 | - | 4.2 | - | |||||||||||
| Impairment of assets | 0.2 | 1.3 | 0.2 | 1.3 | |||||||||||
| Accrual for estimated non-recurring legal settlement costs | — | 1.0 | - | 1.0 | |||||||||||
| Depreciation and amortization | 4.1 | 3.6 | 15.3 | 13.9 | |||||||||||
| Interest income, net | (0.2 | ) | (0.4 | ) | (0.8 | ) | (2.1 | ) | |||||||
| Provision (benefit) for income taxes | 20.1 | (0.0 | ) | 18.6 | 2.8 | ||||||||||
| Adjusted EBITDA (non-GAAP basis) | $ | (1.8 | ) | $ | 4.2 | $ | 1.6 | $ | 19.9 | ||||||
| Sales | $ | 112.1 | $ | 119.2 | $ | 435.0 | $ | 467.0 | |||||||
| Adjusted EBITDA margin (non-GAAP), as a percentage of sales | -1.6 | % | 3.5 | % | 0.4 | % | 4.3 | % | |||||||
| GAAP TO NON-GAAP RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER SHARE (Unaudited) | |||||||||||||||||||||||||||||||
| For the three months ended | For the fiscal year ended | ||||||||||||||||||||||||||||||
| January 31, 2026 | February 1, 2025 | January 31, 2026 | February 1, 2025 | ||||||||||||||||||||||||||||
| $ | Per diluted share | $ | Per diluted share | $ | Per diluted share | $ | Per diluted share | ||||||||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||||||||||||
| Net income (loss) | $ | (29.6 | ) | $ | (0.54 | ) | $ | (1.3 | ) | $ | (0.02 | ) | $ | (35.9 | ) | $ | (0.66 | ) | $ | 3.1 | $ | 0.05 | |||||||||
| Adjust: | |||||||||||||||||||||||||||||||
| Transaction-related costs | 3.6 | - | 4.2 | - | |||||||||||||||||||||||||||
| Impairment of assets | 0.2 | 1.3 | 0.2 | 1.3 | |||||||||||||||||||||||||||
| Accrual for estimated non-recurring legal settlement costs | - | 1.0 | - | 1.0 | |||||||||||||||||||||||||||
| Charge to establish a full valuation allowance against net deferred tax assets | 20.4 | - | 20.4 | - | |||||||||||||||||||||||||||
| Income tax effect of above adjustments (1) | (0.1 | ) | (0.0 | ) | (0.5 | ) | (1.1 | ) | |||||||||||||||||||||||
| Adjusted net income (non-GAAP basis) | $ | (5.5 | ) | $ | (0.10 | ) | $ | 1.0 | $ | 0.02 | $ | (11.5 | ) | $ | (0.21 | ) | $ | 4.3 | $ | 0.07 | |||||||||||
| Weighted average number of common shares outstanding on a diluted basis | 54.7 | 53.7 | 54.1 | 59.6 | |||||||||||||||||||||||||||
(1) The income tax effect of pre-tax adjustments to adjusted net income (loss) was calculated using the applicable effective tax rate for each respective period. For the fourth quarter and fiscal 2025, the applicable effective tax rate, before the charge to establish a full valuation allowance against deferred tax assets, was
| GAAP TO NON-GAAP RECONCILIATION OF FREE CASH FLOW (Unaudited) | |||||||
| For the fiscal year ended | |||||||
| (in millions) | January 31, 2026 | February 1, 2025 | |||||
| Cash flow from operating activities (GAAP basis) | $ | 2.1 | $ | 29.6 | |||
| Capital expenditures, excluding store development | $ | (11.3 | ) | $ | (14.5 | ) | |
| Free Cash Flow before capital expenditures for store development (Non-GAAP basis) | $ | (9.2 | ) | $ | 15.1 | ||
| Capital expenditures for store development | (8.8 | ) | (13.2 | ) | |||
| Free cash flow (non-GAAP basis) | $ | (18.0 | ) | $ | 1.9 | ||
