Destination XL

Q2 FY2027 EarningsQ2 FY26 results beat consensus across the board, with revenue of $111.6M vs. $109M expected and GAAP EPS of $0.04 vs. a predicted loss of $(0.04). Profitability was significantly bolstered by a one-time $4.6M tariff refund, driving a gross margin of 47.9% compared to the 44.2% estimate. While comparable sales fell 3.5% YoY due to persistent traffic headwinds, management noted encouraging sequential improvement through July and effectively scrapped the FullBeauty merger to protect shareholder value.