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Destination XL GroupDXLG -1.73%48 Gross Margin % is 44.28% as of Apr. 2026, which is 2% below its 10-year median of 45.23. GuruFocus rates DXLG with a GF Score™ of 48/100 and a GF Value™ of $2.59 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,121 Retail - Cyclical companies, Destination XL Group ranks better than 63.07% on this metric.
Destination XL Group (NAS:DXLG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Destination XL Group had a gross margin of 44.28% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Destination XL Group Gross Margin % Related Terms
Destination XL Group Gross Margin % Historical Data
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The historical data trend for Destination XL Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DXLG vs BRIA, BIRD, KMFG: Gross Margin % Comparison
For the Apparel Retail subindustry, Destination XL Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Destination XL Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Destination XL Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Destination XL Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Destination XL Group (DXLG) has a Gross Margin % of 44.28% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Destination XL Group and its competitors. This is near median its historical median of 45.23. Over the past decade, Destination XL Group's Gross Margin % has ranged from 32.88 to 49.94. According to the industry distribution chart, Destination XL Group ranks #414 out of 1121 companies in the Retail - Cyclical industry, placing it in the top 36.9%.
Is Destination XL Group's Gross Margin % too high?
Destination XL Group's current Gross Margin % of 44.28% is near median its 10-year median of 45.23. Over the past 10 years, this metric has ranged from a low of 32.88 to a high of 49.94. The Retail - Cyclical industry median Gross Margin % is 36.09. Destination XL Group's value of 44.28% is 22.7% above this industry median. Based on the distribution chart, Destination XL Group ranks #414 out of 1121 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Destination XL Group has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Destination XL Group's Gross Margin % compare to BRIA and BIRD?
According to the Retail - Cyclical industry distribution chart, Destination XL Group ranks #414 out of 1121 companies for Gross Margin %. This puts Destination XL Group in the upper half of its industry. The industry median Gross Margin % is 36.09. Destination XL Group's value of 44.28% is 22.7% above this benchmark. Historically, Destination XL Group's own Gross Margin % has ranged from 32.88 to 49.94 over the past decade. While the company's 10-year median is 45.23 vs. the industry median of 36.09, Destination XL Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.09, based on 1,121 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Destination XL Group's current Gross Margin % of 44.28% is 22.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Destination XL Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Destination XL Group's current Gross Margin % is 44.28%, which is near median its own 10-year median of 45.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Destination XL Group stock overvalued right now?
Based on GuruFocus' analysis, Destination XL Group (DXLG) is currently considered Possible Value Trap. The stock's GF Value™ is $2.59, compared to a current price of $0.61 — trading 76.5% below its estimated fair value. The current Gross Margin % is 44.28%, which is near median its 10-year median of 45.23 and 22.7% above the Retail - Cyclical industry median of 36.09. Destination XL Group's overall GF Score™ is 48/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Destination XL Group (DXLG), the current Gross Margin % is 44.28% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Destination XL Group (DXLG) Overvalued in 2026?
Based on GuruFocus' analysis, Destination XL Group stock appears to be undervalued.
The current stock price of $0.61 is trading 76.5% below its estimated GF Value™ of $2.59.
GuruFocus considers Destination XL Group to be Possible Value Trap.
Key valuation signals for DXLG:
Gross Margin %: 44.28% (near median its 10-year median of 45.23)
GF Value™: $2.59 vs. price of $0.61 (76.5% below fair value)
Industry Position: 22.7% above the Retail - Cyclical median (#414 of 1121)
No single metric tells the full story. See the DXLG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Destination XL Group Inc is a retailer of branded and Tall men's clothing and shoes in the United States. It also sells products across the world. The company sells its products under the trade names Destination XL, DXL, DXL Men's Apparel, DXL outlets, Casual Male XL, and Casual Male XL outlets. The company has two principal operating segments: Store and Direct business. The company have two principal operating segments: company's stores and direct business.
48GF Score
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