Destination XL Q2 sales fall on lower store traffic; exits FullBeauty merger
DXLG•Outlook
- Company expects fiscal 2026 marketing costs to be about 5.8% of sales
- Company sees fiscal 2026 capital expenditures at $8 mln-$10 mln, down from prior $9 mln-$12 mln
- Company estimates tariffs to impact fiscal 2026 gross margin by about 100 basis points if current rates remain
Overview
- US Big + Tall apparel retailer's fiscal Q2 sales fell 3.4% yr/yr, comparable sales down 3.5%
- Adjusted EPS for fiscal Q2 rose to $0.05 from $0.01 yr/yr
- Company withdrew from proposed merger with FullBeauty, citing concerns over FullBeauty's performance
Key Details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Beat | $111.60 mln | $109 mln (1 Analyst) |
| Q2 Adjusted EPS | Beat | $0.05 | -$0.04 (1 Analyst) |
| Q2 EPS | $0.04 | ||
| Q2 Net Income | $2 mln | ||
| Q2 Adjusted EBITDA | $7.70 mln | ||
| Q2 Comparable sales Growth | -3.50% |
Analyst Coverage
- The one available analyst rating on the shares is "buy"
- The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
