Destination XL is rationalizing its store base over the next several years as leases expire or kick-out rights become available, a move that will shrink the big-and-tall men's retailer's physical footprint. CFO Peter Stratton said on the chain's second-quarter earnings call that the company closed three stores in 2026 and has a few dozen leases coming up in 2027, which it will evaluate case by case over the next six months to decide how many more to close. The store rationalization work will have limited impact in 2026 but is expected to reduce occupancy and store operating costs beginning in 2027 and beyond, part of a multiyear project aimed at improving sales per square foot and four-wall profit. Destination XL's in-store comparable sales fell 4.3% in the second quarter, while its direct, or online, business declined just 1.6%, and Stratton said digital now approaches 70% of total demand at peer retailer Torrid, which has closed nearly 200 stores. RTM Nexus CEO Dominick Miserandino attributed the store closures directly to mass adoption of GLP-1 weight-loss drugs such as Ozempic, which he said puts the chain's core big-and-tall customer base in a purchasing holding pattern.
Destination XL Group IncIn-store comps fell 4.3% and its big-and-tall customer base is in a purchasing holding pattern amid GLP-1 adoption, prompting store closures
Torrid Holdings Inc