Destination XL Losses Mount as Big and Tall Shoppers Remain Cautious

The men’s large and gangly manufacture continues to beryllium nether strain.

Destination XL Group, the country’s largest retailer of men’s large and gangly merchandise, fell further into the reddish successful the 4th quarter, posting a nett nonaccomplishment of $29.6 million, oregon 54 cents a diluted share, up importantly from the $1.3 cardinal nonaccomplishment successful the 4th fourth of fiscal 2024. Sales were besides down successful the play ending Jan. 31, dropping 6 percent to $112.1 cardinal from $119.2 cardinal the anterior year. Comparable-store income fell 7.3 percent with brick-and-mortar income down 8.6 percent and online measurement down 4.3 percent.

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The Canton, Mass.-based retailer blamed the upwind and cautious user sentiment for the mediocre showing but said that concern has begun to amended truthful acold this year.

“Our fourth-quarter comparable income done the vacation play and into aboriginal January were down 5.8 percent, an betterment from the remainder of the year,” said Harvey Kanter, president and main enforcement officer. “That momentum was interrupted by a terrible arctic upwind lawsuit that impacted overmuch of the state during the last 2 weeks of January, which created wide disruption crossed our astir 300-store fleet, materially pressured our quarterly results, and reduced our quarterly comparable sales. However, I americium pleased to study that 2026 is disconnected to a amended commencement with comparable income for the period of February down 1.3 percent and aboriginal March appears to beryllium pursuing a akin trend.”

He added that the large and gangly lawsuit shopped little often past twelvemonth and prioritized “essentials and little terms points.” In response, the institution worked to negociate expenses and inventories to support margins. It besides expanded its backstage statement assortment, heightened its absorption connected “value-driven” nationalist brands, launched a caller loyalty programme and rolled retired its proprietary FitMap exertion to much stores crossed the chain. The integer sizing level is presently offered successful 188 stores and online.

“As a result, we exited fiscal 2025 with a cleanable inventory position, nary debt, and approximately $28.8 million in currency and investments,” Kanter said. “We judge that equilibrium expanse spot gives america flexibility and resilience arsenic we mean to proceed to execute with subject successful a challenging environment.”

The concern whitethorn alteration aboriginal this twelvemonth erstwhile DXL’s planned merger with FullBeauty Brands comes to fruition. As reported, the retailer past 4th said that it would merge with FBB Holdings Inc., an inclusive-size retailer for men and women that operates nether the FullBeauty and KingSize names. The combined concern volition person yearly income of astir $1.2 billion.