DESTINATION XL GROUP, INC. Segments Disclosure
L. SEGMENT DISCLOSURES
The Company sells clothing, footwear and accessories to big + tall men through its 295 store locations and its direct business, which includes its website, mobile app and certain marketplaces. The Company has identified its stores and its direct business as two separate operating segments. Resources are allocated and performance is assessed by our President and , whom we have determined to be our Chief Operating Decision Maker (the "CODM").
The CODM evaluates the performance of its operating segments and allocates resources based on sales performance, merchandise margins and 4-wall contribution (a non-GAAP measure). The accounting policies are the same as those described in the “Summary of Significant Accounting Policies” for the Company. The Company defines 4-wall contribution, which the CODM considers the performance measure for segment profitability, as segment revenues less cost of goods sold, occupancy costs and selling expenses.
We aggregate our two operating segments because they are economically similar. Both segments sell the same merchandise, at the same pricing, and share the same customer base, production, advertising spend and distribution. Our distribution channels are available to our customers regardless of how they initiate their transaction. Through our mobile app or website, a customer can initiate a purchase online and that purchase could be filled either by the distribution center or one of our stores. Similarly, a customer also has the option to pick up in store or have the merchandise shipped directly to them. The 4-wall contribution margin for each segment is materially similar, further supporting the economic similarity of these two operating segments and that no additional value would be provided by reporting the segments separately.
The following table is a summary of our segment disclosures and a reconciliation of 4-wall contribution (a non-GAAP measure) to net income (a GAAP measure):
|
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
|
Fiscal 2023 |
|
|||
(in thousands) |
|
|
|
|
|
|
|
|
|
|||
Sales |
|
$ |
435,017 |
|
|
$ |
467,015 |
|
|
$ |
521,815 |
|
Cost of goods sold |
|
|
(177,162 |
) |
|
|
(186,235 |
) |
|
|
(210,340 |
) |
Occupancy costs |
|
|
(68,868 |
) |
|
|
(63,585 |
) |
|
|
(59,053 |
) |
Store payroll and benefits |
|
|
(55,269 |
) |
|
|
(53,765 |
) |
|
|
(54,103 |
) |
Other selling expenses |
|
|
(26,131 |
) |
|
|
(26,928 |
) |
|
|
(25,790 |
) |
4-wall contribution (non-GAAP) |
|
|
107,587 |
|
|
|
136,502 |
|
|
|
172,529 |
|
|
|
|
|
|
|
|
|
|
|
|||
Advertising |
|
|
(26,680 |
) |
|
|
(31,844 |
) |
|
|
(30,932 |
) |
Corporate G&A |
|
|
(50,510 |
) |
|
|
(54,374 |
) |
|
|
(54,144 |
) |
Distributing and supporting G&A |
|
|
(28,787 |
) |
|
|
(31,371 |
) |
|
|
(31,560 |
) |
Depreciation and amortization |
|
|
(15,331 |
) |
|
|
(13,878 |
) |
|
|
(13,833 |
) |
Transaction-related costs |
|
|
(4,228 |
) |
|
|
— |
|
|
|
— |
|
Impairment of assets |
|
|
(210 |
) |
|
|
(1,303 |
) |
|
|
(116 |
) |
Loss from termination of retirement plans |
|
|
— |
|
|
|
— |
|
|
|
(5,690 |
) |
Interest income, net |
|
|
810 |
|
|
|
2,084 |
|
|
|
2,137 |
|
Income (loss) before provision (benefit) for income taxes |
|
$ |
(17,349 |
) |
|
$ |
5,816 |
|
|
$ |
38,391 |
|
Provision (benefit) for income taxes |
|
|
18,559 |
|
|
|
2,761 |
|
|
|
10,537 |
|
Net income (loss) (GAAP) |
|
$ |
(35,908 |
) |
|
$ |
3,055 |
|
|
$ |
27,854 |
|
The CODM does not receive information about assets at the segment level because the Company's assets are managed at a consolidated level by department as opposed to by segment.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 19, 2026 | Showing above |
| 2025 | Mar 20, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.