DXL Q2 sales down 3.4% to $111.6M; board urges AGAINST FullBeauty merger

DESTINATION XL GROUP, INC.

Q2 sales $111.6M, down 3.4% YoY; comps -3.5%, improving from -5.7% May to -1.9% July
Net income $2.0M ($0.04/diluted) vs $0.3M loss prior year; includes $4.6M tariff refund; adj. EPS $0.05
Adjusted EBITDA $7.7M vs $4.7M prior year; gross margin 47.9% up 270bps on tariff refund
DXL Board recommends stockholders vote AGAINST FullBeauty merger issuance proposal; cites FullBeauty's declining performance, negative equity value
Cash and investments $20.1M at Aug 1, 2026 vs $33.5M prior year; no debt; FY26 tariff impact est. ~100bps on gross margin

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