DESTINATION XL GROUP, INC.

Destination XL Group reported a net loss of $(5.9) million, or $(0.11) per share, for the first quarter of fiscal 2026, a significant increase from the $(1.9) million net loss in the prior year. Sales decreased by 2.1% to $103.3 million. The company's cash and cash equivalents declined to $11.1 million from $23.8 million at the end of fiscal 2025, though net cash used in operating activities improved.

Destination XL Group, Inc. announced that its Board of Directors has reevaluated the previously announced merger of equals with FBB Holdings I, Inc. (FullBeauty). The Board believes the existing terms are no longer in the best interests of DXL stockholders, citing an increasingly challenging consumer environment and FullBeauty's indebtedness. DXL is now engaged in constructive discussions with FullBeauty to determine the optimal path forward, while still believing in the industrial logic of the combination. Separately, DXL also released its First Quarter Fiscal 2026 financial results today.

Destination XL Group, Inc. reported its first quarter fiscal 2026 results, with total sales decreasing by 2.1% to $103.3 million. The company experienced a net loss of $5.9 million, or $(0.11) per diluted share, a significant increase from the net loss of $1.9 million, or $(0.04) per diluted share, in the prior year's quarter. Adjusted EBITDA also declined to $(0.7) million from $0.2 million. The company cited macroeconomic pressures and the impact of GLP-1 medications as contributing factors to the sales decline. Additionally, transaction-related costs associated with the pending merger with FullBeauty Brands were noted.

Destination XL Group announced that its Board of Directors has reevaluated the previously announced merger of equals with FBB Holdings I, Inc. (FullBeauty). The Board believes the current terms are not in the best interests of DXL stockholders, citing a challenging consumer environment and FullBeauty's indebtedness, despite still believing in the industrial logic of the combination. DXL is now engaging in constructive discussions with FullBeauty to determine an optimal path forward. Separately, DXL also released its First Quarter Fiscal 2026 financial results today.

Destination XL Group, Inc. announced that its Board of Directors unanimously recommends shareholders reject the unsolicited tender offer from Zodiac Partners II, LLC for $0.82 per share. The Board, after review with advisors, determined the offer does not reflect the Company's underlying value and is opportunistic. In light of the resources required to review the offer, the Company has rescheduled its fiscal first quarter earnings release and conference call to June 3, 2026.

Destination XL Group filed a 10-K/A, primarily updating its corporate governance and executive compensation disclosures. Fiscal 2025 was a challenging year, marked by an 8.4% decline in comparable sales and a net loss of $(0.66) per diluted share. This performance led to a significant decrease in performance-based executive compensation, with total compensation for Named Executive Officers declining from fiscal 2024 levels. Despite the headwinds, the company maintained a strong liquidity position, ending fiscal 2025 with $28.8 million in cash and investments and no borrowings.

Destination XL Group, Inc. announced it is reviewing an unsolicited tender offer from Zodiac Partners II, LLC to acquire all outstanding shares for $0.82 per share in cash. The Board of Directors, with its independent financial and legal advisors, is carefully evaluating the offer, especially in light of the Company's existing merger agreement with FBB Holdings I, Inc. (FullBeauty). Shareholders are advised to take no action at this time, as the Board will make a recommendation in due course and file a Schedule 14D-9.

Destination XL Group, Inc. announced that its Board of Directors is carefully evaluating an unsolicited $0.82 per share cash tender offer from Zodiac Partners II, LLC. This evaluation is being conducted with independent financial and legal advisors, taking into account DXL's existing merger agreement with FBB Holdings I, Inc. The Board advises shareholders to take no action at this time and will provide a recommendation within ten business days by filing a Schedule 14D-9 with the SEC.

Destination XL Group, Inc. announced that its President and Chief Executive Officer, Harvey S. Kanter, will retire. The company notified Mr. Kanter on May 11, 2026, that his employment agreement would not be renewed, aligning with his desire to retire. His employment with the company will officially terminate on August 11, 2026.

Destination XL Group, Inc. announced it will release its first quarter fiscal 2026 financial results before the market opens on Thursday, May 28, 2026. President and Chief Executive Officer Harvey Kanter and Executive Vice President, Chief Financial Officer, and Treasurer Peter Stratton will host a conference call at 9:00 a.m. ET on the same morning to discuss the results. Interested parties can join the call via pre-registration or listen to a webcast, with a replay available afterwards.