Signal as much as our free cash publication for funding evaluation and skilled recommendation that will help you construct wealth
Signal as much as our free cash electronic mail for assist constructing your wealth
Signal as much as our free cash electronic mail for assist constructing your wealth
Vacation spot XL has seen gross sales fall by about 6 % as People flip to weight-loss medicine.
The plus-size males’s clothes chain not too long ago reported its earnings for the fourth quarter of the 2025 fiscal 12 months, which ended on January 31, 2026. Complete gross sales for the quarter have been $112.1 million, a 6 % lower from the 12 months earlier than.
In a name with analysts final Thursday, DXL CEO Harvey Kanter mentioned of GLP-1 medicine, “We did not suppose it was going to be impacting the enterprise as a lot on the stage we predict right this moment it’s.”
“And we even have been advised and see prospects which are transferring round, each transferring down in measurement, but additionally for no matter cause, on the medicine they usually determine to get off they usually’re transferring again up,” Kanter mentioned. “So there’s simply loads of volatility. I do not know that we’ll see what I might let you know some stage of stabilization of the buyer relative to GLP medicine for some time period.”
Kanter recommended prospects might not need to purchase extra garments till they’re at a weight they need to keep.
“Sometimes, weight lack of any type up or down is a good friend of ours. However I believe proper now, we’re in a sample the place they’re reducing weight they usually’re on a journey, they usually’re attempting to to not purchase garments till they’re executed with that journey. So we do suppose it’ll come again,” the CEO mentioned.
Retail Dive reported first on the consequences weight-loss medicine have had on DXL.
In response to a ballot launched by well being coverage group KFF final November, 1 in 8 US adults mentioned they’re taking a GLP-1 drug similar to Ozempic or Wegovy for weight reduction, diabetes or one other continual situation. Almost one in 5 adults mentioned they’ve taken a GLP-1 drug in some unspecified time in the future.
A current examine by Cleveland Clinic discovered 47.6 % of those that stopped taking weight-loss medicine did so for monetary causes, whether or not that be as a result of insurance coverage didn’t cowl it, a reduction for the drug was now not obtainable or out-of-pocket prices have been unaffordable.
One other 14.6 % mentioned they stopped due to unwanted side effects, and one other 11.8 % mentioned they stopped due to drug shortages.
Get a free fractional share price as much as £100.Capital in danger.
Phrases and circumstances apply.
Go to web site
ADVERTISEMENT
Get a free fractional share price as much as £100.Capital in danger.
Phrases and circumstances apply.
Go to web site
ADVERTISEMENT
The usage of GLP-1 medicine by prospects was simply one among a number of elements impacting the plus-size attire trade.
“Fiscal 2025 as a complete displays the continuing challenges going through the massive + tall retail sector. Site visitors remained tender, shopper sentiment was cautious, and prospects shopped much less often, typically prioritizing necessities and cheaper price factors,” Kanter mentioned in a current press launch.
Regardless of a lower in fourth-quarter gross sales, DXL stays optimistic concerning the fiscal 12 months forward.
“Our fourth quarter comparable gross sales via the vacation season and into early January have been down 5.8 %, an enchancment from the remainder of the 12 months. That momentum was interrupted by a extreme Arctic climate occasion that impacted a lot of the nation in the course of the closing two weeks of January,” Kanter mentioned. “Nevertheless, I’m happy to report that 2026 is off to a greater begin with comparable gross sales for the month of February down 1.3 % and early March seems to be following an analogous development.”
DXL will shut a merger with FullBeauty Manufacturers within the second quarter of the 2026 fiscal 12 months.
“This merger creates a scaled, category-defining retailer for inclusive attire, which we count on will generate $1.2 billion of income, $25 million of annual run-rate value synergies, and significant business synergies, making a compelling alternative to drive long-term worth for DXL shareholders,” Kanter mentioned.
