DXLG

EX-99.1

2 dxlg-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Destination XL Group, Inc. Reports Second Quarter Financial Results

Sales of $111.6 million, Net Income of $0.04 per diluted share, Adjusted Net Income of $0.05 per diluted share

CANTON, Mass., September 09, 2026 – Destination XL Group, Inc. (NASDAQ: DXLG)(“DXL” or the “Company”), the leading integrated-commerce specialty retailer of Big + Tall men’s clothing and footwear, today reported operating results for the second quarter of fiscal 2026.

Second Quarter Financial Highlights

• Total sales for the second quarter were $111.6 million, down 3.4% from $115.5 million in the second quarter of fiscal 2025. Comparable sales for the second quarter of fiscal 2026 decreased 3.5% as compared to the second quarter of fiscal 2025.

• Net income for the second quarter was $2.0 million, or $0.04 per diluted share, as compared to a net loss of $(0.3) million, or $0.00 per diluted share, for the second quarter of fiscal 2025. Net income for the second quarter of fiscal 2026 includes a refund for tariffs of $4.6 million.

• Adjusted net income (a non-GAAP measure) for the second quarter was $0.05 per diluted share as compared to an adjusted net income of $0.01 per diluted share for the second quarter of fiscal 2025.

• Adjusted EBITDA (a non-GAAP measure) for the second quarter was $7.7 million as compared to $4.7 million for the second quarter of fiscal 2025.

• Total cash and investments were $20.1 million at August 1, 2026, as compared to $33.5 million at August 2, 2025, with no outstanding debt for either period.

Management’s Comments

“DXL’s singular commitment to serving the Big + Tall customer has allowed us to establish a differentiated leadership position in an underserved market that represents meaningful opportunities for future growth. We have a strong brand, loyal customer base and a clear understanding of our customers’ priorities. As we navigate a dynamic consumer environment, our team is focused on delivering the right product and value, deepening our engagement with customers across channels and operating the business with greater discipline,” said Lionel F. Conacher, Chairman and Interim Chief Executive Officer.

“Our second quarter results show encouraging sequential improvement in comparable sales trends and continued progress on the actions we are taking to strengthen the business. Comparable sales improved from down 5.7% in May, to down 2.8% in June, and down 1.9% in July, even as traffic remained under pressure across stores and digital. While there is more work ahead, we remain confident that our disciplined operating approach and focus on execution will position us to drive continued performance improvements over the remainder of the year,” Mr. Conacher concluded.

Strategic Priorities

We continue to advance several strategic initiatives designed to strengthen our market leadership in the big + tall sector while enhancing the customer experience across channels.

FiTMAP®

We have exclusive rights to our fit technology platform until 2030. FiTMAP® remains one of the Company’s most important long-term growth drivers. This FiTMAP technology is currently available in 188 stores. Since launch, over 150,000 customers have engaged with the platform, and early results continue to reinforce its value. Customers who use FiTMAP have demonstrated stronger conversion, higher average order values, greater purchase frequency and lower return rates, underscoring the role personalized fit can play in driving both customer satisfaction and profitable growth.

Leverage AI

We are sharpening our focus on artificial intelligence (“AI”) as consumer shopping behavior evolves. As the Company believes AI-powered search and discovery tools may become increasingly important in ecommerce, the Company is investing to ensure that its products and content are more visible, relevant and accessible in these emerging environments. We have launched new AI initiatives to improve product data quality, enrich item-level attributes and strengthen our ability to connect product, pricing and inventory information across AI-enabled platforms. These efforts are intended to improve discoverability, support future commerce applications and position the Company to compete effectively as digital shopping journeys become more conversational and agent-driven.

GLP-1 Medications and Similar Weight-Loss Medications

We continue to deepen our understanding of how the use of glucagon-like peptide-1 (“GLP-1”) medications and similar weight-loss medications may be influencing customer behavior and category demand. Our research indicates that a meaningful portion of our customer base is currently using GLP-1 medications, contributing to more dynamic sizing needs over time. We are responding thoughtfully by broadening select assortments in smaller sizes and using customer insights to inform future merchandising, marketing and re-engagement strategies. Importantly, the Company sees this as bo

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