Destination XL Group Inc. (NASDAQ: DXLG) announced that its board of directors has reevaluated the previously announced merger with FullBeauty Brands and is engaging in discussions to determine the path forward.

The board conducted a comprehensive review of the merger agreement originally executed in December 2025. While the board maintains belief in the combination's industrial logic, it determined that current merger terms are not in the best interests of stockholders due to challenging consumer conditions and FullBeauty's debt levels.

"The DXL Board of Directors is committed to creating stockholder value and taking actions that are in the best interests of DXL and its stockholders," said Lionel Conacher, chairman of the board. "Our objective is to determine the path forward that best positions DXL and its stockholders for future success."

The company separately released its first quarter fiscal 2026 financial results. President and Chief Executive Officer Harvey Kanter and Executive Vice President and Chief Financial Officer Peter Stratton will host a conference call at 9:00 a.m. ET to discuss the results.

Guggenheim Securities LLC serves as financial advisor to DXL, while Greenberg Traurig LLP acts as legal advisor and Joele Frank, Wilkinson Brimmer Katcher provides strategic communications advisory services.

Destination XL Group operates as a retailer of men's big and tall apparel through DXL Big + Tall retail and outlet stores, Casual Male XL stores, and e-commerce platforms. The company is headquartered in Canton, Massachusetts.