Destination XL calls off merger with FullBeauty
Destination XL Group has changed course — at least for the time being.
The parent company of DXL Big + Tall stores and Casual Male XL stores said that its board “reevaluated” its previously announced merger with FullBeauty, and decided that the existing terms of the agreement are not “in the best interests of DXL stockholders.”
In December, Destination XL and FullBeauty, an inclusive-size online retailer for men and women, said they would combine forces in a “merger of equals.” Under the terms of the deal, a newly formed subsidiary of DXL would have been created, with DXL remaining the publicly traded entity
In a release, Destination XL said it is in constructive discussions with FullBeauty to determine the best path forward, and that the board continues to believe in the “industrial logic” of the combination.
“However, given the increasingly challenging consumer environment since the execution of the merger agreement in December 2025 and FullBeauty’s indebtedness, the board believes that the existing terms of the merger agreement are not in the best interests of DXL stockholders,” the company stated.
First Quarter
The news about the merger came the same day that Destination XL released its first-quarter results. The retailer reported a net loss of $5.9 million, or $0.11 per diluted share, for the quarter, as compared to a net loss of $1.9 million, or $(0.04) per diluted share, for the first quarter of fiscal 2025. The adjusted net loss was $0.06 per diluted share as compared to an adjusted net loss of $0.04 for the prior year.
Total sales fell 2.1% to $103.3 million. Comparable sales decreased 3.8%.
"We are encouraged by our first quarter results, which reflect an improving sales performance and continued progress toward our strategic priorities," stated president and CEO Harvey Kanter. "While comparable sales declined 3.8%, we saw positive momentum in key areas of the business, including higher conversion rates and increased average order value across both stores and online. We will continue to navigate the challenging environment, building on the strength of our offering and assortment and the trust our customers place in the DXL brand."