Destination XL Group (DXL) and FullBeauty Brands, both giants in the big-and-tall/inclusive-sizing category, will combine in a “merger of equals” with combined net sales of $1.2 billion for the year that ended in October 2025. The deal, which has been approved by both companies’ boards, is expected to generate $25 million in annual run-rate cost synergies by 2027 through cost-of-goods optimization and organizational efficiencies.
The combined company will reflect a mix with direct-to-consumer accounting for 73% of total sales and brick-and-mortar making up the remaining 27%. In addition to its 296 brick-and-mortar stores, the new entity will have a strong DTC presence with approximately 34 million households in its combined database. Growth will come from “disciplined” store openings, according to a company statement, reflecting the new company’s ecommerce focus.
“By uniting DXL and FullBeauty we are creating a leader in a fragmented market that will define the next decade of inclusive fashion,” said current FullBeauty CEO Jim Fogarty, who will serve as CEO of the new combined company, in a statement. “Together we will be a powerful engine for innovation — combining data science, digital scale, proprietary fit technology and differentiated store expertise.”
FullBeauty has previously grown primarily through acquisition. In June 2024 the company acquired the Avenue brand, its fourth purchase in just over one year, including Dia, CUUP and Eloquii, which FullBeauty bought from Walmart in April 2023.
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The brands expect to benefit from cross-brand and cross-channel traffic and by leveraging FullBeauty’s digital mall capabilities, marketplace infrastructure, print marketing and private label credit expertise. DXL’s key contributions will be its stores, national brand and fit expertise. Additionally, both brands’ focus on fit, flexibility and ongoing customer support positions the new company to meet new and existing customers at every stage of their weight fluctuation journey, including those on GLP-1 medications, through offerings including the DXL FiTMAP and FullBeauty’s free exchange program.
“We are excited about what this transaction means for our associates, customers and shareholders,” said Harvey Kanter, President and CEO of DXL in a statement. “Together with FullBeauty, we will be better able to serve our customers across the plus-size and big-and-tall apparel market, providing them more brands, more styles and more options whether they shop in stores or online through our powerful omnichannel platform.”
With FullBeauty CEO Fogarty serving as CEO of the new combined company, current DXL CFO Peter Stratton take on the CFO role. Following the completion of the all-stock transaction, FullBeauty shareholders will own 55% of the company, with the remainder held by DXL shareholders.
DXL also is no stranger to brand partnerships. In October 2023 the brand partnered with Untuckit to create a capsule shirt collection in sizes designed specifically for big-and-tall men, and in April 2024 DXL partnered with Nordstrom to bring its experience with larger-size apparel to the department store’s newly launched marketplace.
