Destination XL (DXL), the plus-size men's clothing chain, has reported a 6% drop in fourth-quarter sales, attributing the decline partly to the growing use of weight-loss drugs like Ozempic and Wegovy. Total sales for the quarter ending January 31, 2026, were $112.1 million, down from the previous year.
In an analyst call, CEO Harvey Kanter acknowledged the impact of GLP-1 drugs, stating, 'We didn't think it was going to be impacting the business as much at the level we think today it is.' He noted customer volatility, with some losing weight and others regaining it after stopping medication, leading to uncertainty in purchasing behaviour.
Kanter suggested that customers may delay buying new clothes until they reach a stable weight. 'Typically, weight loss of any kind up or down is a friend of ours. But I think right now, we're in a pattern where they're losing weight and they're on a journey, and they're trying not to buy clothes until they're done with that journey,' he said.
According to a KFF poll, one in eight US adults currently take a GLP-1 drug, while a Cleveland Clinic study found that nearly half of users stop due to cost. DXL also faced broader challenges in the big and tall retail sector, including soft traffic and cautious consumer spending.
Despite the downturn, DXL reported improving trends in early 2026, with February comparable sales down only 1.3%. The company is set to merge with FullBeauty Brands in the second quarter, aiming to create a $1.2 billion revenue retailer with significant cost synergies.
