DXLG - Destination XL Is Turning Around And Fairly Valued But Not An Opportunity
2024-03-05 13:23:43 ET
Summary
- Destination XL is an American apparel retailer specializing in big & tall men.
- The company has been turning around after a dismal decade of terrible operations pre-pandemic.
- The company's positioning is very interesting, concentrating in an underserved but affluent customer segment.
- I commend several of management's new initiatives, and the focus on cost control.
- The current price seems justified by fears around the economy and weight-loss drugs. At lower prices, DXLG is probably an opportunity.
Destination XL ( DXLG ) is an American apparel retailer specializing in big & tall men.
Destination XL has an interesting market positioning, focusing on assortment and customer service for tall, overweight males. The company commands relatively high gross margins, which indicates a premium bias on its products sold.
Destination had terrible operations before the pandemic, barely ever making a profit. After the pandemic, the company shows a much better profile, even against the recent macroeconomic headwinds. Part of the improvements might be credited to management....
Destination XL Is Turning Around And Fairly Valued, But Not An Opportunity