DXLG Q1 2026 Earnings Call Transcript

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DATE

Wednesday, June 3, 2026 astatine 9 a.m. ET

CALL PARTICIPANTS

• President & Chief Executive Officer — Harvey S. Kanter

• Executive Vice President, Chief Financial Officer, and Treasurer — Peter H. Stratton Jr.

Full Conference Call Transcript

Harvey S. Kanter: Thank you, Shelly, and bully morning, everyone. As always, we admit your clip and involvement successful DXL. Before I get into our quarterly results, fto maine commencement by reiterating our assurance that DXL is good positioned for maturation and worth creation. DXL has a coagulated instauration built connected the spot of our brand, loyal marque relationships with our lawsuit and fiscal position. The changes we are making to our assortment, promotional strategy, and lawsuit acquisition to amended align with today's worth conscious large and gangly user are opening to carnivore fruit. Our inventory levels are cleanable and stable. Inventory turnover is strong, and clearance levels are successful enactment with our 10% targets.

Additionally, we conscionable delivered the strongest quarterly comparable income effect successful the past 3 years astatine antagonistic 3.8%. We are wide eyed with respect to the headwinds successful our marketplace and proceed to instrumentality decisive enactment to navigate these challenges. We are aligning our outgo structure, our gross operation by reviewing firm overhead and our store portfolio. We are leaving nary chromatic unturned and moving with urgency to finalize and instrumentality these outgo redeeming actions implicit the coming months. Importantly, DXL has a fortress equilibrium expanse with implicit $16 cardinal of currency connected hand, nary debt, and excess availability of $70 cardinal giving america flexibility arsenic we proceed strengthening our concern for the future.

We are pleased with the traction we are already driving done our maturation initiatives which we volition speech astir shortly. And judge we person a coagulated program successful spot to instrumentality DXL to profitability. And with that, fto maine crook to our archetypal 4th results. I americium pleased to study that our archetypal 4th show reflected betterment arsenic we began fiscal 26 which was owed to the institution circumstantial initiatives which we person been implementing. Comparable income were down 1.3% successful February, down 2.7% successful March, and down 6.8% successful April.

While the displacement successful the eastbound calendar had immoderate effect connected the examination betwixt March and April We besides judge softer April request reflected broader macroeconomic unit connected user assurance and discretionary spending including the existent planetary conflict, higher substance costs, and inflation. We besides judge the increasing interaction GLP-1 medications is contributing to structural alteration successful request wrong the large and gangly category. For the quarter, comparable income were down 3.8%, representing our champion quarterly comp show since the 2nd 4th of 23. Although we inactive person meaningful enactment ahead, we are encouraged by the betterment successful the 4th and judge it whitethorn bespeak that our turnaround efforts are opening to summation traction.