Net Sales
$115.5 million, a decrease from $124.8 million in the second quarter of last year. This was primarily due to a 9.2% decrease in comparable sales, partially offset by an increase in noncomparable sales from new stores. The decline was attributed to customers pulling back on discretionary spending and shifting towards value-driven private brands.
Comparable Sales
Declined 9.2% for the second quarter. Stores outperformed direct with comparable store sales down 7.1%, while direct was down 14.4%. The decline was primarily due to reduced store traffic and challenges with the new e-commerce platform.
Gross Margin Rate
45.2%, a decrease from 48.2% in the second quarter of last year. The 300 basis point decrease was due to a 240 basis point increase in occupancy costs from lower sales and increased rents, and a 60 basis point decrease in merchandise margins due to higher markdown rates and increased freight costs.
SG&A Expense
41.2% of sales, a decrease from 43% in the second quarter of 2024. On a dollar basis, SG&A expenses decreased by $6.1 million, primarily due to lower marketing spend and lower performance incentive accruals, partially offset by an increase in employee health care benefits.
EBITDA
$4.6 million, a decrease from $6.5 million in the second quarter of last year. The decrease was primarily driven by lower sales, partially offset by reductions in operating expenses.
Inventory Balance
$78.9 million, a modest increase of $300,000 from $78.6 million last year. The increase was due to accelerated receipts to mitigate the impact of tariffs.
Cash and Short-term Investments
$33.5 million, a decrease from $63.2 million a year ago. The decrease was due to share repurchases and capital spent on new store development.
DXLG
$1.085+Infinity%1D
Analyst Views on DXLG
Wall Street analysts forecast DXLG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DXLG is USD with a low forecast of 1.00 USD and a high forecast of 1.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast DXLG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DXLG is USD with a low forecast of 1.00 USD and a high forecast of 1.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 1.060
Low
1.00
Averages
High
1.00
Current: 1.060
Low
1.00
Averages
High
1.00
DA Davidson
Michael Baker
Strong Buy
Maintains
$3 → $2.5
2025-03-21
Reason
DA Davidson
Michael Baker
Price Target
$3 → $2.5
2025-03-21
Maintains
Strong Buy
Reason
DA Davidson
Michael Baker
Strong Buy
Maintains
$3.5 → $3
2024-12-24
Reason
DA Davidson
Michael Baker
Price Target
$3.5 → $3
2024-12-24
Maintains
Strong Buy
Reason
DA Davidson analyst Michael Baker lowered the firm's price target on Destination XL (DXLG) to $3 from $3.50 and keeps a Buy rating on the shares. The firm cites the Fund 1 Investments having made a takeover bid for the company at $3 per share, which equates to an enterprise value of $128M. Given Fund 1's bid for Nordstrom (JWN), the Destination XL deal should be favorable from a shareholder perspective given its lower EBITDA margins compared to Nordstrom, the analyst tells investors in a research note.
About DXLG
Destination XL Group, Inc. is a specialty retailer of big + tall men’s apparel with retail locations throughout the United States. It operates under the trade names of Destination XL, DXL, DXL Men's Apparel, DXL outlets, DXL Big + Tall, Casual Male XL, and Casual Male XL outlets. It operates approximately 247 DXL retail stores, 15 DXL outlet stores, 7 Casual Male XL retail stores, 19 Casual Male XL outlet stores, and a digital business. Its DXL retail stores, e-commerce site, and mobile application offers its customers merchandise to fit a variety of lifestyles from casual to business, young to mature, in all price ranges and in all large sizes from XL and up. In addition, it also offers a selection of shoes in sizes 10W to 18W on its websites. Its Casual Male XL retail stores primarily carry moderate-priced national brands and its own brands of casual sportswear and dresswear. It also operates Casual Male XL outlets and DXL outlets for its customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
