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Destination XL launches new business and Amazon is among first customers

The nation’s largest retailer of big and tall menswear has started a wholesale division.

As part of its strategic growth plan, Destination XL Group said it has launched a wholesale business unit focused on product development and distribution relationships with key retailers. Under the new model, the company will develop and distribute both private label and co-branded men’s big and tall apparel lines.

As part of the new initiative, Destination XL will serve as the provider of men’s big and tall sizes for Amazon’s private brand, Amazon Essentials, which is now available. The company will provide a range of styles in sizes 2XL and above, with the items marketed as “Amazon Essentials Fit by DXL.”

DXL has sold some goods on Amazon for the past couple of years. However, this is the first time the retailer has partnered with the online giant for wholesale product.

“We believe there is an opportunity to bring our big and tall expertise in comfort, fit and style to leading apparel retailers who recognize the growth potential of this dynamic market niche,” said David Levin, acting CEO. “This model will allow DXL to leverage its extensive big and tall experience and industry knowledge with its current product development infrastructure, affording a broader market reach, including new distribution channels and increased brand awareness beyond the current DXL footprint.”

DXL Group also released its holiday sales for the 9-weeks ended January 5, 2019. Sales increased 1.4% to $102.7 million and same-store sales rose 3.6%. Based on the holiday sales results and expectations for the remainder of the fourth quarter, the company reiterated its full-year guidance as previously disclosed.

“We experienced strong sales increases in both our store and direct channels as our customers continue to respond favorably to our merchandise assortment and marketing programs,” Levin said.
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