On this page of StockholderLetter.com we present the latest annual shareholder letter from DESTINATION XL GROUP, INC. — ticker symbol DXLG. Reading current and past DXLG letters to shareholders can bring important insights into the investment thesis.
O   ering great clothes that    t
Big + Tall men shouldn   t be
remarkable.
But it is.
Annual Report 2024
Dear Shareholders,
When I joined the Company back in 2019, what attracted me
to DXL was the opportunity to evolve the brand. Despite the
compelling assortment of both private and national brands,
coupled with a leading retail customer experience, our brand
positioning required meaningfully greater definition. The brand   s
positioning, now consumer-focused and commercially set,
requires driving greater awareness, more stores and enhanced
digital access for DXL to accelerate growth. Our objective today
is much the same as it was back then: to provide the Big + Tall
man with the freedom to choose his own style and to wear what
he wants. This singular focus to deliver a superior experience
to Big + Tall men, with an unrivaled FIT and an assortment of
footwear and apparel that can   t be found anywhere else, is
why we exist. I remain as enthusiastic and energized about our
Company today as I was on my first day in 2019: to bring DXL
to Big + Tall guys everywhere.
When I joined in 2019, our initial focus was to more clearly
define our Mission, Vision, and Strategy that would serve as a
compass as we began this journey. Less than a year later, as
a management team we were forced to quickly pivot our focus
and attention as the global pandemic gripped the world and
customer demand ground to a halt. In 2020, we were fighting
for our survival. We were decisive and we were aggressive
to preserve liquidity and ensure that our Company remained
solvent. What followed in 2021 and 2022 was a remarkable
recovery and inflection in consumer demand as our customers
emerged from lockdowns and began shopping for clothes once
again. We seized the opportunity and successfully leveraged the
consumers    orientation for normalcy and to get back to all that
seemed like a distant memory. During those years we achieved
the two most prosperous years across all elements of the
business in our Company   s history. We grew top line sales, we
achieved record profit levels, we recapitalized our balance sheet,
we paid off our debt, and we amassed a sizable cash position.
As a result, DXL was in a strong position with the financial
flexibility to play offense, and we began to lay the groundwork
for growth.
Fiscal year 2023 was a year of preparation, learning and staging.
We believe the men   s Big + Tall market in the US is approximately
$23.0 billion dollars a year which would peg our market share
at approximately 2.2%. We knew there was opportunity in this
market, which is highly fragmented, where almost everyone who
sells men   s apparel dabbles to one degree or another in
Big + Tall. We spent 2023 focusing on developing a strategic
long-range plan in which seeds were planted in 2022; a plan that
we believe will allow us to overcome four separate challenges
that are limiting our growth.
The first challenge is Awareness. Our internal research in
2023 confirmed that we have significant opportunity to grow
awareness of the DXL brand. When Big + Tall men are ready
to shop we need DXL to be top of mind. We intend to drive
that behavior through a new brand marketing campaign that
launched in May 2024. This is the first time in over 5 years that
DXL has pursued a coordinated brand campaign, and we are
optimistic that our efforts will drive greater awareness.
The second challenge is Accessibility. Our internal research in
2023 also told us that Big + Tall consumers do not shop with us
44% of the time because there is no store near them, and 35%
of the time because there is no store conveniently near them.
We have identified over 100 potential market opportunities
across the US that are not currently being served by a DXL store.
We opened 3 new stores in the second half of 2023, and we
expect to open 8 more new stores in 2024. We are optimistic
that we will open upwards of 50 new stores cumulatively over
the next several years.
The third challenge is Digital Friction. We are transitioning to
a new and improved eCommerce platform through a phased
approach. The first element of this new platform launched in
May 2024, with subsequent enhancements planned to deploy in
the third and fourth quarter of 2024. The new platform enables
critically important operating capabilities while serving as the
foundation for key growth drivers, specifically improvements in
CX and UX.
The fourth challenge, perhaps    opportunity    is a better word,
is what we are referring to as Alliances & Collaborations.
Regardless of how much we invest in the DXL brand, there
are certain consumers we will never capture on our own.
Collaborating with other retailers to bring the DXL experience
beyond our four walls and into another retailer   s environment
is the objective here. Our latest foray into this initiative was
launching DXL   s Big + Tall offering on Nordstrom   s digital
marketplace platform. This is a turn-key solution that brings
our assortment and sizing to a new Big + Tall customer who is
already shopping at a retailer that is closely aligned with our
vision of service and customer experience.
We have spent the past year developing and optimizing our longrange plan. Despite some of the macroeconomic challenges
of fiscal 2023 and our not meeting our sales and earnings
objectives, I am enthusiastic about the opportunities ahead. We
are focused on executing our plan to help make the lives of our
Big + Tall guys a little bit better by being his singular destination
to look and feel great. I am hopeful you will have a better
understanding of what we think is possible over the next three
to five years and, as always, we thank you for your interest and
support in DXL.
Sincerely,
Harvey S. Kanter
President and CEO
Destination XL Group, Inc.
 • shareholder letter icon 6/28/2024 Letter Continued (Full PDF)
 • stockholder letter icon 6/30/2023 DXLG Stockholder Letter
 • stockholder letter icon More "Apparel Stores" Category Stockholder Letters
 • Benford's Law Stocks icon DXLG Benford's Law Stock Score = 72


DXLG Shareholder/Stockholder Letter Transcript:

O   ering great clothes that    t
Big + Tall men shouldn   t be
remarkable.
But it is.
Annual Report 2024

Dear Shareholders,
When I joined the Company back in 2019, what attracted me
to DXL was the opportunity to evolve the brand. Despite the
compelling assortment of both private and national brands,
coupled with a leading retail customer experience, our brand
positioning required meaningfully greater definition. The brand   s
positioning, now consumer-focused and commercially set,
requires driving greater awareness, more stores and enhanced
digital access for DXL to accelerate growth. Our objective today
is much the same as it was back then: to provide the Big + Tall
man with the freedom to choose his own style and to wear what
he wants. This singular focus to deliver a superior experience
to Big + Tall men, with an unrivaled FIT and an assortment of
footwear and apparel that can   t be found anywhere else, is
why we exist. I remain as enthusiastic and energized about our
Company today as I was on my first day in 2019: to bring DXL
to Big + Tall guys everywhere.
When I joined in 2019, our initial focus was to more clearly
define our Mission, Vision, and Strategy that would serve as a
compass as we began this journey. Less than a year later, as
a management team we were forced to quickly pivot our focus
and attention as the global pandemic gripped the world and
customer demand ground to a halt. In 2020, we were fighting
for our survival. We were decisive and we were aggressive
to preserve liquidity and ensure that our Company remained
solvent. What followed in 2021 and 2022 was a remarkable
recovery and inflection in consumer demand as our customers
emerged from lockdowns and began shopping for clothes once
again. We seized the opportunity and successfully leveraged the
consumers    orientation for normalcy and to get back to all that
seemed like a distant memory. During those years we achieved
the two most prosperous years across all elements of the
business in our Company   s history. We grew top line sales, we
achieved record profit levels, we recapitalized our balance sheet,
we paid off our debt, and we amassed a sizable cash position.
As a result, DXL was in a strong position with the financial
flexibility to play offense, and we began to lay the groundwork
for growth.
Fiscal year 2023 was a year of preparation, learning and staging.
We believe the men   s Big + Tall market in the US is approximately
$23.0 billion dollars a year which would peg our market share
at approximately 2.2%. We knew there was opportunity in this
market, which is highly fragmented, where almost everyone who
sells men   s apparel dabbles to one degree or another in
Big + Tall. We spent 2023 focusing on developing a strategic
long-range plan in which seeds were planted in 2022; a plan that
we believe will allow us to overcome four separate challenges
that are limiting our growth.
The first challenge is Awareness. Our internal research in
2023 confirmed that we have significant opportunity to grow
awareness of the DXL brand. When Big + Tall men are ready
to shop we need DXL to be top of mind. We intend to drive
that behavior through a new brand marketing campaign that
launched in May 2024. This is the first time in over 5 years that
DXL has pursued a coordinated brand campaign, and we are
optimistic that our efforts will drive greater awareness.
The second challenge is Accessibility. Our internal research in
2023 also told us that Big + Tall consumers do not shop with us
44% of the time because there is no store near them, and 35%
of the time because there is no store conveniently near them.
We have identified over 100 potential market opportunities
across the US that are not currently being served by a DXL store.
We opened 3 new stores in the second half of 2023, and we
expect to open 8 more new stores in 2024. We are optimistic
that we will open upwards of 50 new stores cumulatively over
the next several years.
The third challenge is Digital Friction. We are transitioning to
a new and improved eCommerce platform through a phased
approach. The first element of this new platform launched in
May 2024, with subsequent enhancements planned to deploy in
the third and fourth quarter of 2024. The new platform enables
critically important operating capabilities while serving as the
foundation for key growth drivers, specifically improvements in
CX and UX.
The fourth challenge, perhaps    opportunity    is a better word,
is what we are referring to as Alliances & Collaborations.
Regardless of how much we invest in the DXL brand, there
are certain consumers we will never capture on our own.
Collaborating with other retailers to bring the DXL experience
beyond our four walls and into another retailer   s environment
is the objective here. Our latest foray into this initiative was
launching DXL   s Big + Tall offering on Nordstrom   s digital
marketplace platform. This is a turn-key solution that brings
our assortment and sizing to a new Big + Tall customer who is
already shopping at a retailer that is closely aligned with our
vision of service and customer experience.
We have spent the past year developing and optimizing our longrange plan. Despite some of the macroeconomic challenges
of fiscal 2023 and our not meeting our sales and earnings
objectives, I am enthusiastic about the opportunities ahead. We
are focused on executing our plan to help make the lives of our
Big + Tall guys a little bit better by being his singular destination
to look and feel great. I am hopeful you will have a better
understanding of what we think is possible over the next three
to five years and, as always, we thank you for your interest and
support in DXL.
Sincerely,
Harvey S. Kanter
President and CEO
Destination XL Group, Inc.



shareholder letter icon 6/28/2024 Letter Continued (Full PDF)
 

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