10-Q · June 3, 2026
Destination XL Group, Inc. (DXLG) reported disappointing Q1 2026 results with revenue of $103.3 million, falling short of the $105.8 million estimate, marking a decline from $105.5 million in the prior year. The company…
Earnings analysis · 10-Q
DXLG earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
DXL delivered a mixed quarter: EPS was $0.04 versus the $0.02 consensus estimate, but revenue of $111.6 million missed the $118.0 million estimate. Gross margin was 45.2% and operating margin was 0.6%, helped in part by…
Read full summary
DXL delivered a mixed quarter: EPS was $0.04 versus the $0.02 consensus estimate, but revenue of $111.6 million missed the $118.0 million estimate. Gross margin was 45.2% and operating margin was 0.6%, helped in part by a $4.6 million tariff refund, while free cash flow improved to $5.0 million from negative $13.0 million in the prior quarter. The company lowered fiscal 2026 capital-expenditure guidance to $8.0 million-$10.0 million from $9.0 million-$12.0 million and provided no quantitative revenue or EPS outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.04
What stood out
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EPS beat despite revenue miss
Reported EPS was $0.04 versus the $0.02 consensus estimate, while revenue was $111.6 million versus the $118.0 million estimate.
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Profitability returned to positive
Gross margin was 45.2% and operating margin was 0.6%, an improvement from the prior quarter’s 44.3% gross margin and negative 5.8% operating margin.
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Free cash flow improved
Free cash flow was $5.0 million for the quarter, compared with negative $13.0 million in the prior quarter.
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Tariff refund aided results
The company received a $4.6 million tariff refund, which supported quarterly profitability and margin performance.
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Lower planned capital spending
Fiscal 2026 capital-expenditure guidance was reduced to $8.0 million-$10.0 million from $9.0 million-$12.0 million, indicating lower planned investment intensity.
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Marketing outlook disclosed
Management expects marketing costs to be approximately 5.8% of sales; the filing did not provide quantitative revenue or EPS guidance.
What to watch
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Sales remain below expectations
Revenue of $111.6 million missed the $118.0 million consensus estimate, indicating continued sales pressure despite the $4.6 million tariff refund and positive 0.6% operating margin.
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Tariff benefit may not recur
The company remains exposed to tariff-related volatility: the quarter benefited from a one-time $4.6 million tariff refund, while no recurring benefit was identified.
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No risk-factor update
The 10-Q states there were no material changes to the risk factors disclosed in the Fiscal 2025 Annual Report and no material changes to interest-rate exposure; therefore, previously disclosed business risks remain applicable.
Management's outlook
Fiscal 2026 capital-expenditure guidance was lowered to $8.0 million-$10.0 million, net of tenant incentives, from $9.0 million-$12.0 million. Marketing costs are expected to be approximately 5.8% of sales; no revenue or EPS guidance was provided.
Earlier filings 4
10-K · May 26, 2026
Destination XL Group, Inc. reported a challenging fiscal year 2025 with total revenue of $465 million, reflecting a 1.7% decrease compared to the previous year. The company experienced significant operating losses,…
10-K · March 19, 2026
Destination XL Group (DXLG) presents a challenging financial landscape with a significant shift from profitability to substantial losses in fiscal 2025. The company reported a net loss of $(35.9) million for the year,…
10-Q · December 11, 2025
Destination XL Group, Inc. reported a challenging fiscal Q3 2025, with revenues declining to $101.9 million, down 5.2% year-over-year, and a net loss of $4.1 million compared to the prior year's loss of $1.8 million.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.