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Destination XL (DXLG)
NASDAQ:DXLG
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Destination XL
(NASDAQ:DXLG)
58Neutral
Destination XL (DXLG) vs. S&P 500 (SPY)
Market Cap
$77.61M
Dividend YieldN/A
Average Volume (3M)261.03K
Price to Earnings (P/E)32.1
Beta (1Y)1.49
Revenue Growth-10.50%
EPS Growth-88.94%
CountryUS
Employees1,447
SectorConsumer Cyclical
Sector Strength50
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.04
Shares Outstanding53,524,864
10 Day Avg. Volume439,297
30 Day Avg. Volume261,031
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)N/A
P/FCF Ratio43.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.13Price Target Upside46.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Destination XL Business Overview & Revenue Model
Company DescriptionDestination XL Group, Inc. (DXLG) is a leading retailer in the United States specializing in men's big and tall apparel. The company operates a range of retail stores under the DXL and Casual Male XL brands, offering a comprehensive selection of clothing, shoes, and accessories designed specifically for larger and taller men. With a focus on delivering quality and style, Destination XL provides an extensive product assortment from formal wear to casual attire, catering to a niche market that values fit and comfort.
How the Company Makes MoneyDestination XL makes money primarily through the sale of men's big and tall apparel and accessories via its retail stores and e-commerce platform. Revenue is generated from the in-store and online purchase of a wide variety of clothing items, including shirts, pants, suits, outerwear, and footwear. The company also offers private label brands, which typically have higher margins than third-party brands. Additionally, Destination XL benefits from customer loyalty programs and targeted marketing initiatives that drive repeat purchases. Strategic partnerships with popular clothing brands and exclusive offerings further augment the company's revenue streams.
Destination XL Financial Statement Overview
Summary
Destination XL has demonstrated robust revenue growth and improved profitability. The company has transitioned from negative to positive net profit margins, indicating better operational efficiency. However, recent declines in revenue and profit margins, along with the need for consistent cash flow management, are areas to watch.Income Statement
Destination XL has demonstrated robust revenue growth over the years, particularly recovering from a challenging year in 2021. Gross profit margins are healthy, and the company has transitioned from negative to positive net profit margins, indicating improved operational efficiency. However, recent declines in revenue and profit margins need to be monitored.72
Positive
Balance Sheet
The balance sheet shows a positive trend with increasing equity and a reduction in debt over the years, improving the debt-to-equity ratio. The equity ratio is strengthening, suggesting better financial stability. Despite these improvements, the company still needs to maintain this trajectory to ensure long-term solvency.65
Positive
Cash Flow
Cash flow analysis reveals strong operating cash flow with fluctuations in free cash flow due to variable capital expenditures. The company's transition to positive free cash flow in recent years is a positive sign, but consistent cash flow generation remains a priority for sustained growth.68
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 467.01M | 521.82M | 545.84M | 505.02M | 318.95M | Gross Profit |
| 217.19M | 252.42M | 272.60M | 249.82M | 104.86M | EBIT |
| 3.73M | 41.94M | 58.59M | 61.98M | -45.67M | EBITDA |
| 18.91M | 55.89M | 73.81M | 76.86M | -39.04M | Net Income Common Stockholders |
| 3.06M | 27.85M | 89.12M | 56.71M | -64.54M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 48.42M | 60.05M | 52.07M | 15.51M | 19.00M | Total Assets |
| 380.95M | 357.74M | 350.60M | 279.96M | 306.75M | Total Debt |
| 184.62M | 154.54M | 181.57M | 190.80M | 253.81M | Net Debt |
| 172.71M | 126.95M | 129.50M | 175.29M | 234.81M | Total Liabilities |
| 239.73M | 208.79M | 213.37M | 221.74M | 310.83M | Stockholders Equity |
| 141.22M | 148.95M | 137.23M | 58.22M | -4.08M |
| Cash Flow | Free Cash Flow | |||
| 1.86M | 32.18M | 50.30M | 70.27M | -5.47M | Operating Cash Flow |
| 29.58M | 49.59M | 59.94M | 75.54M | -1.23M | Investing Cash Flow |
| -31.34M | -49.15M | -9.64M | -5.27M | -4.24M | Financing Cash Flow |
| -13.93M | -24.93M | -13.73M | -73.76M | 20.13M |
Destination XL Technical Analysis
Negative
1.45
Price Trends
2.30
Negative
2.47
Negative
2.78
Negative
Market Momentum
-0.21
Positive
19.94
Positive
6.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DXLG, the sentiment is Negative. The current price of 1.45 is below the 20-day moving average (MA) of 1.85, below the 50-day MA of 2.30, and below the 200-day MA of 2.78, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 19.94 is Positive, neither overbought nor oversold. The STOCH value of 6.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DXLG.
Destination XL Risk Analysis
Destination XL disclosed 25 risk factors in its most recent earnings report. Destination XL reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Destination XL Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $132.89B | 27.75 | 61.98% | 1.27% | 3.95% | ― | |
72 Outperform | $41.38B | 19.84 | 40.28% | 1.17% | 3.69% | 13.71% | |
70 Outperform | $1.93B | 9.76 | 46.71% | 3.69% | -3.44% | -11.74% | |
59 Neutral | $12.26B | 11.12 | -0.55% | 3.78% | 1.42% | -20.63% | |
58 Neutral | $77.61M | 32.15 | 2.11% | ― | -10.50% | -88.94% | |
52 Neutral | $275.32M | ― | -0.50% | ― | 1.57% | 98.64% | |
33 Underperform | $111.48M | ― | -521.67% | ― | -10.65% | -129.52% |
* Consumer Cyclical Sector Average
Performance Comparison
DXLG
Destination XL
1.45
-2.10
-59.15%
BKE
Buckle
37.98
0.94
2.54%
ROST
Ross Stores
125.42
-18.14
-12.64%
PLCE
Children's Place
8.72
-2.10
-19.41%
TJX
TJX Companies
118.21
19.83
20.16%
ZUMZ
Zumiez
14.37
-0.43
-2.91%
Destination XL Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -28.22% | Next Earnings Date: May 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic initiatives and financial stability, indicating a strong foundation and future potential. However, significant challenges such as declining sales, new store performance issues, and economic uncertainties were noted. The company is actively addressing these issues through strategic promotions and partnerships.Highlights
Strategic Initiatives and Expansion
Opened seven new stores and converted eight others from Casual Male to DXL. Launched a new e-commerce platform and upgraded the loyalty program to DXL Rewards.
Financial Stability
Despite a challenging year, DXL maintained positive net earnings, positive free cash flow, and adjusted EBITDA margins of 4.3%. The company ended the fiscal year with $48.4 million in cash and no debt.
Inventory Management Success
Inventory balance decreased by 6.8% with clearance penetration below 10%, demonstrating effective inventory management.
Nordstrom Partnership
Launched collaboration with Nordstrom online marketplace, offering 37 brands and over 2,200 styles.
Lowlights
Decline in Comparable Sales
Comparable sales decreased by 8.7% in Q4, with store sales down 6.7% and direct sales down 12.7%.
New Store Performance Challenges
All 11 new stores opened did not meet sales expectations, largely due to low brand awareness and traffic issues.
Lack of Traffic
Overall traffic to stores was significantly down, which remains a major challenge for growth.
Tariffs and Economic Uncertainty
Uncertainty about tariffs could impact margins, with potential exposure in Vietnam, India, and Bangladesh.
Company Guidance
During the Destination XL Group, Inc. fourth quarter fiscal 2024 earnings call, the company did not issue specific guidance for fiscal 2025, citing increased market volatility and macroeconomic uncertainties, including the potential impact of tariffs. Despite a 12.5% decline in comparable sales for the first six weeks of fiscal 2025, CEO Harvey Kanter expressed optimism about strategic initiatives designed to capture a larger share of the big and tall market. These initiatives include an upgraded e-commerce platform, a new loyalty program, strategic store openings, and partnerships with Nordstrom and TravisMathew. The company aims to stabilize its business and drive growth by enhancing customer acquisition and retention while maintaining financial discipline, as evidenced by a solid balance sheet with $48.4 million in cash and no debt. Although they expect comparable sales to improve from a double-digit negative in the first quarter to positive in the second half of the year, they refrained from providing a range of expected sales and EBITDA outcomes for the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.