Destination XL Reports 25% of Customers Use GLP-1 Weight Loss Drugs

✴︎

3.21.2026

Quick Facts

Destination XL believes 25% of customers use GLP-1 drugs like Ozempic and Wegovy
Fiscal 2025 sales fell 8.4% to $435 million as customers postpone clothing purchases during weight loss
Company will merge with FullBeauty Brands in Q2 2026 to create $1.2 billion inclusive apparel retailer

Destination XL Group reported that weight loss drugs are creating significant volatility in its customer base, with CEO Harvey Kanter estimating 25% of shoppers now use GLP-1 medications.

The big and tall retailer’s fiscal 2025 sales dropped 8.4% to $435 million as customers delay purchases while losing weight. Comparable sales fell 8.4% for the year, with stores down 6.9% and direct business down 11.8%.

“We didn’t think it was going to be impacting the business as much at the level we think today it is,” Kanter told analysts. “I think right now, we’re in a pattern where they’re losing weight and they’re on a journey, and they’re trying to not to buy clothes until they’re done with that journey.”

The company conducted primary research with CoreSite Research to understand GLP-1 impact on big and tall consumers. The study found customers experience weight fluctuations that create buying volatility. Some stop the medication and regain weight, while others feel more confident and shop more frequently as their size changes.

Revenue for Q4 2025 was $119.2 million, down from $137.1 million in the prior year quarter. Gross margin compressed to 44.4% from 47% as the company managed inventory challenges.

Through the first six weeks of fiscal 2026, comparable sales declined 12.5%. The company expects gradual improvement from low double-digit negatives in Q1 to positive comparisons in the second half.

Destination XL announced a merger with FullBeauty Brands in December 2025, creating a combined company with $1.2 billion in annual sales. The transaction closes in Q2 2026 and targets $25 million in annual cost synergies.

“By uniting DXL and FullBeauty we are creating a leader in a fragmented market,” said FullBeauty CEO Jim Fogarty, who will lead the combined company. Both brands offer fit flexibility and customer support programs designed to serve shoppers through weight fluctuations.

The men’s apparel sector faces broader challenges beyond GLP-1 impact. Kanter cited lower store traffic and reduced online conversion as customers remain selective about spending on men’s big and tall clothing.