Destination Xl Group, Inc. (DXLG) Stock Analysis and Metrics

Sector: Consumer Cyclical Industry: Apparel Retail CIK: 0000813298

Market Cap 34.13 Mn

P/B 0.25

P/E -4.47

P/S 0.08

ROIC (Qtr) -2.13

Div Yield % 0.00

Rev 1y % (Qtr) -5.23

Total Debt (Qtr) 213.29 Mn

Debt/Equity (Qtr) 1.55

About

Destination XL Group, Inc., also known as DXL, is a prominent player in the specialty retail industry, specifically focusing on big & tall men's apparel. The company's operations span across the United States, with a diverse range of retail locations and brand names. DXL's primary business activities revolve around the retail sale of men's apparel and shoes, tailored to meet the needs of big & tall men. The company's product range is extensive, encompassing a wide variety of lifestyles, from formal business attire to casual denim. DXL's offerings...

Destination XL Group, Inc., also known as DXL, is a prominent player in the specialty retail industry, specifically focusing on big & tall men's apparel. The company's operations span across the United States, with a diverse range of retail locations and brand names.

DXL's primary business activities revolve around the retail sale of men's apparel and shoes, tailored to meet the needs of big & tall men. The company's product range is extensive, encompassing a wide variety of lifestyles, from formal business attire to casual denim. DXL's offerings include tops, bottoms, and shoes, all available under its own brands and over 100 national brands.

The company's revenue generation is primarily driven by its retail stores and e-commerce platform. DXL operates 232 DXL retail stores, 17 Casual Male XL retail stores, and several outlet stores. These retail locations offer a mix of own brands and national brands at varying price points. Additionally, DXL's e-commerce platform, dxl.com, offers a broad range of products, including exclusive brands and national brands. The company's digital sales have seen significant growth, increasing by 47.4% from fiscal 2019.

DXL holds a strong position within the big & tall men's apparel market. The company's proprietary fit and extensive selection of exclusive brands distinguish it from its competitors. DXL's key competitors include other big & tall men's apparel retailers, such as Bonobos and J.Crew.

In terms of marketing and brand-building, DXL plans to increase its advertising-to-sales ratio over the next few years, with a focus on enhancing brand awareness and customer engagement. The company has launched several marketing campaigns, including a comprehensive campaign for its UNTUCKit, Fit by DXL collaboration with UNTUCKit.

Looking ahead, DXL has outlined four key initiatives for fiscal 2024: marketing and brand-building, store development, new website launch, and alliances/collaborations. The company expects to open eight new DXL stores and convert five Casual Male XL stores to DXL stores. Furthermore, DXL plans to expand its UNTUCKit, Fit by DXL program and explore other strategic collaborations with national brands.

Price action

Investment thesis

Bull case

Robust tangible asset base of 400.39M provides 11.35x coverage of working capital 35.26M, indicating strong operational backing.
Tangible assets of 400.39M provide robust 17.99x coverage of other current liabilities 22.25M, indicating strong asset backing.
Operating cash flow of 13.92M fully covers other non-current liabilities 499000 by 27.89x, showing strong long-term stability.
Cash reserves of 14.59M provide solid 29.25x coverage of other non-current liabilities 499000, indicating strong liquidity.
Strong tangible asset base of 400.39M provides 348.16x coverage of intangibles 1.15M, indicating robust asset quality.

Bear case

Operating cash flow of 13.92M barely covers its investment activities of (2.31M), with a coverage ratio of -6.03, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
With cash reserves of 14.59M against inventory of 85.04M, the 0.17 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
Free cash flow of (11.40M) provides weak coverage of capital expenditures of 25.32M, with a -0.45 ratio suggesting additional external financing needs for growth initiatives.
Operating earnings of (11.29M) show weak coverage of depreciation charges of 14.92M, with a -0.76 ratio indicating high capital intensity and potential reinvestment needs.
Operating cash flow of 13.92M provides minimal -8.86x coverage of tax expenses of (1.57M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Consolidation Items Breakdown of Revenue (2025)

Contract with Customer, Sales Channel Breakdown of Revenue (2025)

Peer comparison

Companies in the Apparel Retail

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	TJX	Tjx Companies Inc /De/	258.23 Bn	187.23	12.14	13.19 Bn
2	ROST	Ross Stores, Inc.	72.84 Bn	60.07	5.37	5.19 Bn
3	LULU	lululemon athletica inc.	20.56 Bn	11.81	1.86	1.76 Bn
4	BURL	Burlington Stores, Inc.	19.19 Bn	34.23	1.71	5.94 Bn
5	GAP	Gap Inc	11.39 Bn	14.10	0.73	5.52 Bn
6	URBN	Urban Outfitters Inc	6.47 Bn	13.23	1.08	1.18 Bn
7	BOOT	Boot Barn Holdings, Inc.	5.75 Bn	26.25	2.65	0.70 Bn
8	ANF	Abercrombie & Fitch Co /De/	4.83 Bn	9.24	0.93	1.13 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	0.60	1.40
EV to Cash from Ops. EV/CFO	17.19	10.76
EV to Debt EV to Debt	1.12	4.34
EV to EBIT EV/EBIT	-21.18	-65.50
EV to EBITDA EV/EBITDA	51.20	7.78
EV to Free Cash Flow [EV/FCF] EV/FCF	-20.99	15.40
EV to Market Cap EV to Market Cap	7.01	2.07
EV to Revenue EV/Rev	0.54	1.41
Price to Book Value [P/B] P/B	0.25	6.30
Price to Earnings [P/E] P/E	-4.47	240.04

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Dividend Coverage Ratio	0.00	0.87
Dividend Payout Ratio % Div Payout % (Qtr)	0.00	12.36
Dividend per Basic Share Div per Share (Qtr)	0.00	0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr)	0.00	14.72
Interest Coverage Int. cover (Qtr)	5.42	9.50

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex 1y % (Qtr)	4.10	2.00
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	105.32	97.51
Dividend Growth (1y) % Dividend Growth (1y) %	0.00	4.12
EBIAT Growth (1y) % EBIAT 1y % (Qtr)	-214.43	-5.24
EBITDA Growth (1y) % EBITDA 1y % (Qtr)	-82.86	-28.04
EBIT Growth (1y) % EBIT 1y % (Qtr)	-191.55	-4.11
EBT Growth (1y) % EBT 1y % (Qtr)	-163.64	-9.48
EPS Growth (1y) % EPS 1y % (Qtr)	-188.24	-7.53
FCF Growth (1y) % FCF 1y % (Qtr)	-547.23	-177.06
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr)	-14.25	-2.43

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Util Ratio (Qtr)	1.10	1.42
Cash Payout Ratio Cash Payout (Qtr)	0.00	0.06
Cash Ratio Cash Ratio (Qtr)	0.17	0.44
Current Ratio Curr Ratio (Qtr)	1.41	1.64
Debt to Equity Ratio Debt/Equity (Qtr)	1.55	1.24
Interest Cover Ratio Int Coverage (Qtr)	5.42	9.50
Times Interest Earned Times Interest Earned (Qtr)	5.42	9.50

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin % (Qtr)	0.80	1.59
EBIT Margin % EBIT Margin % (Qtr)	-2.55	-10.83
EBT Margin % EBT Margin % (Qtr)	-2.08	-4.08
Gross Margin % Gross Margin % (Qtr)	44.40	41.09
Net Profit Margin % Net Margin % (Qtr)	-1.70	-5.43

Research Tools

Destination Xl Group, Inc. (NASDAQ: DXLG)