Destination XL Group (DXLG) risk factors, FY2025 10-K

Other

1. 01We may not be successful in executing our long-term strategy and growing our market share
2. 02Our marketing programs and efforts to drive traffic and convert that traffic into an increased loyal customer base are critical to achieving market share growth within the big + tall men’s apparel market and may not be successful
3. 03Our direct business is a component of our growth strategy and the failure to develop our digital infrastructure could disrupt our business and negatively impact our sales
4. 04If we are unable to develop and implement our integrated commerce initiatives successfully, our market share and financial results could be adversely affected
5. 05Our business may be adversely affected if we are unable to manage and grow our store portfolio successfully
6. 06Our business may be adversely affected due to disruptions in the global supply chain
7. 07The loss of, or disruption in, our centralized distribution center could negatively impact our business and operations
8. 08We are dependent on third parties to manufacture the merchandise that we sell
9. 09Our business is highly competitive, and competitive factors may reduce our revenues and profit margins
10. 10Our business may be negatively impacted and we may be liable if third parties misappropriate proprietary information of our customers and breach our security systems
11. 11The operation of our business, the rate of our expansion and our ability to respond to changing business and economic conditions all depend on the availability of adequate capital, which in turn depends on cash flow generated by our business and, if necessary, the availability of equity or debt capital
12. 12We may be unable to predict fashion trends and customer preferences successfully
13. 13The loss of any of our key trademarks or licenses could adversely affect demand for our products
14. 14Fluctuations in the price, availability and quality of raw materials and finished goods could increase costs
15. 15If our long-lived assets become impaired, we may need to record significant non-cash impairment charges

Risks Related to Environmental, Social and Governance Issues

1. 16The effects of climate change may adversely impact our business
2. 17We may be unable to achieve our environmental, social and governance objectives
3. 18Our business is subject to evolving regulations and expectations with respect to environmental, social and governance matters that may expose us to increased risks
4. 19Our business is seasonal and is affected by general political and economic conditions
5. 20The global impact of a health pandemic, similar to the COVID-19 pandemic, may have an adverse effect on our business, financial results, liquidity, supply chain and workforce
6. 21Our success depends significantly on our key personnel and our ability to attract and retain additional personnel
7. 22Labor shortages or increases in labor costs due to new regulations could harm our business
8. 23The failure to comply with laws, rules and regulations could negatively affect our business operations and financial performance

Risks Related to Our Corporate Structure and Stock

1. 24Our stock price has been and will likely continue to be volatile and fluctuate substantially
2. 25Our certificate of incorporation, as amended, limits transfers of our common stock and may, along with state law, inhibit potential acquisition bids that could be beneficial to our stockholders