D.A. Davidson Maintains Buy Rating on Destination XL with $2.50 Average Price Target

D.A. Davidson analyst Michael Baker maintains a Buy rating on Destination XL (DXLG). The company's shares closed at $1.30. Baker covers Consumer Cyclical stocks like Dick's Sporting Goods and AutoZone. The analyst consensus on DXLG is a Moderate Buy with an average price target of $2.50. DXLG market cap is $63.16M with a P/E ratio of -24.39.

Destination XL Group (DXLG) reported its first-quarter 2025 earnings, revealing a notable miss on both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of -$0.04 against an expected $0.055. Revenue came in at $105.5 million, falling short of the anticipated $116.58 million. Despite these results, Destination XL’s stock price showed resilience, increasing by 5.05% to $1.24 in pre-market trading [1].

The company attributed the decline in revenue to a 9.4% decrease in comparable sales and a challenging economic environment impacting consumer spending on discretionary apparel. Despite these hurdles, the company remains debt-free and continues to invest in strategic initiatives, including new store openings and technology enhancements. The company plans to open six new stores by the end of 2025 [1].

Analysts remain cautiously optimistic about the company’s prospects. D.A. Davidson analyst Michael Baker maintains a Buy rating on DXLG, with a price target of $2.50. The analyst consensus on DXLG is a Moderate Buy, with an average price target of $2.50. DXLG's market capitalization stands at $63.16 million, with a P/E ratio of -24.39 [2].

Looking ahead, Destination XL anticipates gradual sales improvement, with single-digit negative comparable sales expected in Q2 2025 and positive comp sales projected in the second half of the year. The company plans to continue expanding its retail footprint with four additional store openings planned for 2025, bringing the total to 18 new locations [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-destination-xl-group-misses-q1-2025-earnings-forecast-93CH-4070773
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-destination-xl-group-misses-q1-2025-earnings-forecast-93CH-4070773