Destination XL Group Reports Stronger Sales Momentum in Q1 2026, Eyes Break-Even comps by Summer
Destination XL Group (DXL), a leading apparel retailer for men and women, has reported a stronger sales momentum in its fiscal first quarter of 2026, with comparable sales improving to -1.3% in February, according to Harvey Kanter, the company's President and CEO.
In an earnings call earlier this morning, Kanter stated that prior to the severe Arctic weather event in mid-January, DXL's Q4 quarter-to-date comp sales were down 5.8%, but improved to -1.3% in February. The company is optimistic about its prospects for 2026, expecting continued comp sales improvement over the first two quarters, moving to break even before summer's end and turning positive later this year.
The improving sales trend is driven by a combination of increased traffic to stores and higher average order values (AOV), which are contributing factors in DXL's recent trends. While still early days for fiscal 2026, the company is encouraged by these developments, particularly after the ongoing challenges faced by the big and tall retail sector reflected in its fiscal 2025 results.
DXL has been focusing on strategic initiatives such as FitMAP (a comprehensive approach to merchandise assortment planning), assortment, and strategic promotions to enhance customer engagement and drive sales. The company's core pillars of discipline include tightly managing expenses, driving structured inventory receipt flow, and protecting margins in response to tariffs and promotions.
As reported earlier this morning, DXL's fiscal Q4 2025 comparable sales decreased by 7.3%, with full-year comparable sales down 8.4% compared to fiscal 2024. The company expects its merger agreement with FullBeauty Brands to close in the second quarter of fiscal 2026, subject to customary closing conditions and shareholder approval.
DXL has a clean inventory position as it exited fiscal 2025, with $28.8 million in cash and investments, providing flexibility and resilience for navigating the year ahead. The company's disciplined approach and strategic initiatives have laid the groundwork for improved sales performance in 2026, making DXL an attractive investment opportunity.
