Destination XL Group Inc
NASDAQ:DXLG
Destination XL Group Inc
Destination XL Group, Inc. engages in the retail of specialty products. The company is headquartered in Canton, Massachusetts and currently employs 1,353 full-time employees. The firm operates under the trade names of Destination XL, DXL, DXL outlets, Casual Male XL and Casual Male XL outlets. The company operates approximately 220 Destination XL stores, 16 DXL outlet stores, 35 Casual Male XL retail stores, 19 Casual Male XL outlet stores and a digital business, including an e-commerce site at dxl.com, a mobile site m.destinationXL.com and mobile application. The firm's segments include retail segment and wholesale business segment. Its retail segment operates store segment, which includes DXL Men’s Apparel stores, Casual Male XL retail stores, DXL outlet, and Casual Male XL outlet stores; and direct business segment, which includes online business, through its Website, application and third-party marketplace.
Destination XL Group, Inc. engages in the retail of specialty products. The company is headquartered in Canton, Massachusetts and currently employs 1,353 full-time employees. The firm operates under the trade names of Destination XL, DXL, DXL outlets, Casual Male XL and Casual Male XL outlets. The company operates approximately 220 Destination XL stores, 16 DXL outlet stores, 35 Casual Male XL retail stores, 19 Casual Male XL outlet stores and a digital business, including an e-commerce site at dxl.com, a mobile site m.destinationXL.com and mobile application. The firm's segments include retail segment and wholesale business segment. Its retail segment operates store segment, which includes DXL Men’s Apparel stores, Casual Male XL retail stores, DXL outlet, and Casual Male XL outlet stores; and direct business segment, which includes online business, through its Website, application and third-party marketplace.
Merger Announcement: DXL and FullBeauty announced a merger to create a leading inclusive apparel retailer, with DXL shareholders owning 45% and FullBeauty shareholders 55% of the combined company.
Synergy Targets: The merger expects to achieve $25 million in annual run rate cost synergies by 2027, with significant actions planned in the first 12 months post-closing.
Financial Results: DXL's Q3 2025 net sales were $101.9 million, down from $107.5 million last year, with a 7.4% decrease in comparable sales.
Profitability: DXL reported a Q3 EBITDA loss of $2 million compared to $1 million in earnings last year. Gross margin fell to 42.7% from 45.1%.
Capital Structure: The combined company will have a $172 million term loan maturing August 2029 at LIBOR plus 750, with no other significant debt at closing.
Shareholder Support: Boards of both companies unanimously approved the merger, with voting agreements representing 19.4% of DXL shares in favor.
Growth and Omnichannel Strategy: The combined entity will have approximately $1.2 billion in LTM net sales, a 34 million household customer database, and nearly 300 stores.
