Destination XL Group, Inc. (DXLG) Covered Calls

Destination XL Group, Inc. is the leading integrated-commerce specialty retailer of Big + Tall men’s clothing and shoes. The firm operates a retail portfolio including DXL and Casual Male XL stores, as well as a comprehensive digital platform. By offering a vast assortment of exclusive styles and top designer brands in extended sizes, the company provides an unparalleled fit experience. Its mission is to empower Big + Tall men to wear exactly what they want.

You can sell covered calls on Destination XL Group, Inc. to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for DXLG (prices last updated Wed 4:16 PM ET):

Want to make money with covered calls?  Sign Up For A Free Trial

Destination XL Group, Inc. (DXLG) is the largest specialty retailer of Big + Tall men’s apparel in the United States. Operating primarily through its DXL and Casual Male XL brands, the company has successfully redefined the shopping experience for a historically underserved demographic. Headquartered in Canton, Massachusetts, the firm provides an "integrated-commerce" model that seamlessly blends over 280 physical retail and outlet locations with a high-growth e-commerce and mobile app ecosystem.

The 2026 FullBeauty Merger and Strategic Transformation

The first half of 2026 marked the most significant milestone in the company’s history with the completion of its merger with FullBeauty Brands. This "Merger of Equals" created a scaled, category-defining leader in inclusive-sizing apparel, uniting DXL’s dominant position in men’s Big + Tall with FullBeauty’s expansive portfolio of women’s inclusive brands. The combined entity now reflects a digital-first profile, with approximately 73% of total sales derived from direct-to-consumer channels.

By April 2026, the company successfully integrated FullBeauty’s "Digital Mall" infrastructure, allowing for cross-brand traffic and personalized marketing driven by combined first-party data. Despite a challenging fiscal 2025 where annual revenue dipped 6.8% to $435 million, the merger is expected to drive significant cost synergies and margin expansion through 2027. Management has extended the contract of CEO Harvey Kanter through August 2026 to oversee this critical integration.

Competitive Landscape

The specialty retail market for inclusive sizing is becoming increasingly competitive as department stores and fast-fashion retailers expand their extended-size offerings. Key competitors include:

1. The Gap, Inc.: A global apparel retailer that competes through its Old Navy and Gap brands. They have aggressively expanded their inclusive sizing and "body-positive" marketing to capture a broader share of the value-oriented and inclusive-fit market.
2. Abercrombie & Fitch Co.: A leading global specialty retailer of apparel and accessories. They compete for younger "Big + Tall" consumers through their Fitch and Hollister brands, which have recently expanded their size ranges to include more inclusive fits.
3. Kohl's Corporation: A leading omnichannel retailer that competes in the family apparel segment. They offer an extensive Big + Tall department and have a highly active options market, making them a primary peer for tactical retail trading strategies.
4. Macy's, Inc.: An omni-channel retailer that competes for the Big + Tall customer through its extensive private-label and branded men’s departments, often utilizing heavy promotional activity to drive volume.

Strategic Outlook and Shareholder Value

The firm is prioritizing "Fit Expertise" as its primary competitive advantage, leveraging decades of proprietary measurement data to ensure superior garment construction. Strategic efforts in 2026 are focused on "Channel Optimization," which includes a disciplined plan to open new DXL stores in high-traffic markets while closing legacy Casual Male XL locations.

Financially, the company remains focused on capital allocation that supports its "long-term growth" thesis. While the stock faced price volatility in early 2026 following the merger announcement, analysts cite significant potential as integration synergies materialize. With a debt-equitization plan in place following the FullBeauty transaction, the company enters the second half of 2026 with a strengthened balance sheet and a clear path to becoming the global authority in size-inclusive fashion.

Want more examples? DXJ Covered Calls | DXPE Covered Calls