Destination XL Q2 Sales Down 9 Percent

Destination XL Group(NASDAQ:DXLG) reported second quarter fiscal 2025 results on August 14, 2025, with comparable sales down 9.2% year over year and net sales of $115.5 million. Management highlighted a strategic shift toward private brands, cost discipline amid sector headwinds, and proactive tariff mitigation. The following insights detail the most significant developments and risks for long-term investors.Private brand penetration reached 56.5% of sales, up from under 50% several years ago, and management targets more than 60% in fiscal 2026 and above 65% in 2027. Private brands deliver higher initial markup (IMU) rates than national brands, supporting margin expansion even as promotions increase.This accelerated shift to private brands positions the company to structurally improve merchandise margins and gain greater control over inventory and promotional levers, enhancing long-term profitability even in a challenging demand environment.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool