Destination XL Group 2026 Q2 Earnings Sharp Net Loss Amid Revenue Decline

Destination XL Group reported its Q2 2026 earnings on August 27, 2025, revealing a challenging performance with a notable net loss and revenue contraction. The results fell below expectations, with no improvement in guidance provided.

Revenue
Total revenue for the quarter declined by 7.5% to $115.50 million, reflecting weaker demand across its channels. The Retail segment accounted for the full $115.50 million in revenue, with $83.69 million generated from store sales and $31.81 million from direct sales, illustrating the company’s reliance on in-person and online channels to maintain top-line performance.

Earnings/Net Income
Earnings per share remained flat at $0.00, but the company reported a net loss of $265,000 in Q2 2026, marking an 111.1% deterioration from a net income of $2.38 million in the same period a year prior. This sharp decline highlights the growing financial pressures the company faces.

Price Action
DXLG shares have seen a continued slide in recent months, with a 10.27% drop on the latest trading day, a 0.76% decline for the week, and a 6.43% loss month-to-date.

Post-Earnings Price Action Review
Historically, a strategy of buying DXLG shares following a revenue increase has underperformed badly. Over the past three years, it has delivered a -76.80% return compared to a benchmark gain of 58.85%, with an excess return of -135.65% and a CAGR of -39.61%. The high volatility and significant drawdowns, reflected in a Sharpe ratio of -0.69, underscore the high-risk nature of the stock.

CEO Commentary
CEO Harvey S. Kanter acknowledged the financial pressures from weak apparel demand and constrained consumer spending in the Big and Tall market. He noted modest sequential improvement in comp sales and outlined a strategic shift to expand private brand offerings and optimize promotional and inventory strategies. Kanter remains cautiously optimistic about the team’s resilience and the company’s readiness for 2026.

Guidance
Destination XL Group expects to see sequential sales improvements in the second half of 2025 and is preparing for 2026 with strategic cost control, including pausing new store development. While no specific revenue or EPS guidance was provided, the company emphasized pricing adjustments and tariff mitigation as part of its financial strategy.

Additional News
On June 25, 2025, MarketBeat published a news piece about DXLG, although no earnings metrics were provided. The content required JavaScript and cookies to load, limiting immediate access to additional details. In the three weeks following the earnings report, no major M&A activity, C-level executive changes, or dividend/buyback announcements were disclosed, leaving the earnings performance as the primary topic of discussion.