Destination XL reports holiday sales decline amid FullBeauty merger

Canton-based specialty retailer Destination XL Group, Inc. (DXL) has announced preliminary, unaudited sales results for the nine-week holiday period ended January 3, 2026. Total sales for the period reached 89.9 million dollars, compared to 94.7 million dollars for the corresponding holiday season the previous year.

Comparable sales (comp sales) for the nine-week period decreased 5.8 percent, reflecting ongoing challenges in the Big + Tall sector. Within the omnichannel framework, comp sales from brick and mortar stores fell 7.2 percent, while the direct-to-consumer (D2C) business saw a more moderate decline of 2.8 percent.

Direct business shows sequential improvement

Harvey Kanter, president and chief executive officer of DXL, noted that despite the overall decline, the holiday results represented an improvement over the 8.7 percent comp sales decrease experienced through the first nine months of fiscal 2025. The D2C segment, in particular, showed recovery through strategic promotions, narrowing its decline from the 14.6% decrease recorded earlier in the year.

Kanter stated that while promotional activities drove a favourable response online, they were insufficient to fully offset declining store traffic. He attributed the retail performance to a difficult macroeconomic environment and continued pressure on discretionary spending within the inclusive apparel market.

FullBeauty merger to create scaled apparel leader

On December 11, 2025, DXL entered into a definitive agreement to combine with FBB Holdings I, Inc. (FullBeauty) in a merger of equals. The transaction aims to create a category-defining retailer for inclusive apparel by leveraging complementary strengths across gender, product, and channel.

The two companies reported combined net sales of approximately 1.2 billion dollars for the 12 months ending October 2025 and adjusted EBITDA of approximately 45 million dollars.

The transaction is expected to close in the first half of fiscal year 2026, subject to DXL shareholder approval and customary closing conditions.