Destination XL Group, Inc. (NASDAQ:DXLG) reported fourth-quarter results that missed Wall Street expectations, posting an adjusted loss per share of $0.10 compared with the analyst forecast of a $0.02 loss. The company’s shares showed little reaction following the release.
Revenue for the quarter totaled $112.1 million, broadly in line with the consensus estimate of $112.17 million but down 6.0% from $119.2 million in the same period a year earlier.
The retailer said an intense Arctic weather event during the final two weeks of January disrupted operations across its nearly 300-store network, weighing on quarterly performance. Comparable sales declined 7.3% in the quarter, with store sales falling 8.6% and direct-to-consumer sales down 4.3%.
Chief Executive Officer Harvey Kanter said business conditions have improved slightly at the start of the new fiscal year, noting that comparable sales in February declined only 1.3%, with early March showing a similar pattern.
For fiscal 2025, total revenue fell 6.9% to $435.0 million from $467.0 million in fiscal 2024. The company posted a net loss of $35.9 million, or $0.66 per diluted share, compared with net income of $3.1 million, or $0.05 per diluted share, the previous year. The results included a $20.4 million non-cash charge related to establishing a full valuation allowance against net deferred tax assets.
“Fiscal 2025 as a whole reflects the ongoing challenges facing the big + tall retail sector. Traffic remained soft, consumer sentiment was cautious, and customers shopped less frequently,” Kanter said. “We exited fiscal 2025 with a clean inventory position, no debt, and approximately $28.8 million in cash and investments.”
Destination XL also said it expects the planned merger with FullBeauty Brands to close in the second quarter of fiscal 2026. The combined company would generate roughly $1.2 billion in revenue and is expected to deliver approximately $25 million in annual cost synergies.