Jeremy Hamblin

Keegan Tierney Cox

Michael Baker

William Forsberg

Bryce Butler

- Destination XL Group reported Q2 2026 net sales of **$115.5 million**, a decrease from the prior year, with comparable sales down **9.2%**.  **[813298_tx_351601_6]**  However, comparable sales trends showed sequential improvement, from a **10.4%** decline in May to a **7%** decline in July, with August month-to-date results better than July.  **[813298_tx_351601_1]** **[813298_tx_351601_6]** 
- The company is undergoing a significant strategic shift to prioritize **private brands**, aiming to increase their sales penetration from the current **56.5%** to **over 60% in 2026** and **over 65% in 2027**, which is expected to drive higher profitability.  **[813298_tx_351601_3]** **[813298_tx_351601_9]** 
- DXLG anticipates an increase in FY 2025 inventory costs by just under **$4 million** due to tariffs, which they plan to offset with retail price increases and supply chain cost savings.  **[813298_tx_351601_4]**  Despite sales challenges, operating expenses are down year-over-year, and corporate headcount has decreased by **15%** since the pandemic.  **[813298_tx_351601_4]** **[813298_tx_351601_5]** 
- Cash and short-term investments were **$33.5 million** at quarter-end, and year-to-date free cash flow was a use of **$14.2 million**.  **[813298_tx_351601_6]** **[813298_tx_351601_7]**  The company secured a 5-year extension of its credit facility and has paused future store openings to prioritize free cash flow generation.  **[813298_tx_351601_5]** **[813298_tx_351601_7]** **[813298_tx_351601_10]**

DESTINATION XL GROUP (DXLG)