Overview
- Fourth-quarter net loss widened to $29.6 million as sales fell 6% to $112.1 million, with comparable sales down 7.3% including an 8.6% decline in stores and a 4.3% drop online.
- Fiscal 2025 sales fell 6.9% to $435 million and the company posted a $35.9 million net loss, while recording a $20.4 million non-cash valuation allowance against deferred tax assets.
- DXL cited late-January arctic weather and a consumer shift toward essentials and lower price points, and said preliminary research suggests GLP-1 use may affect roughly 25% of customers, delaying purchases and causing sizing volatility.
- The retailer stressed inventory discipline and liquidity with no debt and about $28.8 million in cash, plans higher private-brand penetration to above 60% in 2026, is scaling FitMap sizing technology across 188 stores and online, and paused new openings for 2026.
- Leaders expect momentum to improve with February comps down 1.3%, target breakeven comps before summer and growth in the back half of 2026, and say the all-stock merger with FullBeauty remains on track for a Q2 2026 close with FullBeauty owning 55% and Jim Fogarty as CEO.