Investor Presentation

September 2017

Destination XL Group, Inc.

Forward-Looking Statements and Non-GAAP Measures

Forward-Looking Statements:
Certain information contained in this presentation constitute forward-looking statements under the federal securities laws
and include statements regarding the Company’s expectations on strategic opportunities, sales, gross margin, free cash
flows, EBITDA, projected 5-year IRR, capital expenditures, and store counts for fiscal 2017. The discussion of forward-
looking information requires management of the Company to make certain estimates and assumptions regarding the
Company's strategic direction and the effect of such plans on the Company's financial results. Such forward-looking
statements are subject to various risks and uncertainties that could cause actual results to differ materially from those
indicated. Such risks and uncertainties may include, but are not limited to: the failure to execute the Company's DXL
strategy and grow market share, failure to compete successfully with our competitors, failure to predict fashion trends,
extreme or unseasonable weather conditions, economic downturns, a weakness in overall consumer demand, trade and
security restrictions and political or financial instability in countries where goods are manufactured, fluctuations in price,
availability and quality of raw material, the interruption of merchandise flow from the Company's distribution facility, and the
adverse effects of general economic conditions, political issues abroad, natural disasters, war and acts of terrorism on the
United States and international economies. These, and other risks and uncertainties, are detailed in the Company's Annual
Report on Form 10-K filed with the Securities and Exchange Commission for the fiscal year ended January 28, 2017 filed
on March 20, 2017 and other Company filings with the Securities and Exchange Commission. The Company assumes no
duty to update or revise its forward-looking statements even if experience or future changes make it clear that any projected
results expressed or implied therein will not be realized.
Non-GAAP Measures:
Adjusted Net Loss, Adjusted Net Loss Per Diluted Share, EBITDA, Free Cash Flow and Free Cash Flow before DXL
expenditures are non-GAAP measures. The Company believes that these non-GAAP measures are useful as additional
means for investors to evaluate the Company's operating results, when reviewed in conjunction with the Company's GAAP
financial statements. Please see Appendix C for additional information concerning these non-GAAP measures and a
reconciliation to their respective GAAP measures, as applicable.

Destination XL Group, Inc.

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Agenda

• DXL Today

• Our Strategy

• Our Opportunity

• Key Investment Takeaways

Destination XL Group, Inc.

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 DXL Today

Destination XL Group, Inc. 4

 $450M+
annual sales
225
DXL Stores
31 DXL stores
scale & reach to serve
every market in
with annual sales
continental U.S. >$2.0M

88 DXL stores
with 4-wall cash flow
>25%

20.5% New store

53 DXL
3.2 years E-commerce 5yr - IRR

average age
sales
penetration
40% - 50% stores with
of DXL store
sales per sq ft
>$200
Destination XL Group, Inc.
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 Strategy

Destination XL Group, Inc. 6

Strategy: Differentiated Assortment & Experience
• CONVENIENCE AND EASE
– Convenient head-to-toe shopping all under one roof; casual to dress
to athletic styles.

• COMFORT AND FIT

– We ARE the fit experts with technical designs to precisely fit and
complement the body proportions of our guy. Sizes start at XL, waist
38, and shoes 10W & up.

• THE FINEST QUALITY & PERSONALIZED SERVICE

– Whether it’s a top designer or a value-priced private label, we offer
only the finest in quality and craftsmanship; and our service is
unparalleled.

• BEST SELECTION OF STYLES & BRANDS

– Over 100 brands and 1,000s of styles – from top designers and
exclusive private labels.

• MODERN, UNIQUE SHOPPING ENVIRONMENT

– A store environment that offers the ultimate “WOW” factor, featuring
spacious aisles and fitting rooms, plus an easy-to-shop layout.

Destination XL Group, Inc.

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Strategy: Destination Model vs. Mall Model

• Destination model acquires customers over time resulting in strong

year-over-year comps as the store matures as opposed to mall model
• Located in high traffic locations with convenient access and parking

Destination XL Group, Inc.

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Strategy: Lifestyle Assortment Approach

• Effectively displaying the full

range of brands
and categories

• Floor sections targeted to

specific lifestyles

• Comfortable tailoring and

fitting areas

• Ambiance appeals to target

customers as well as female
companion shoppers

Destination XL Group, Inc.

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Strategy: The Perfect Fit

Destination XL Group, Inc.

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Strategy: World Class Brand Portfolio

Brand Class Good Better Best Luxury

Luxury
5%

Best
28%
Good
51%

Better
16%

Merchandise Mix

Private label
Designer Brands 45%
55%

Over 100 brands, 1,000s of styles!

Destination XL Group, Inc.
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Destination XL Group, Inc.
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 Opportunity

Destination XL Group, Inc. 13

 Opportunity: Awareness

6 out of 10 Big and Tall Guys

don’t know who we are!

-Based on Nielson’s brand tracker study most recently completed in August 2017

Destination XL Group, Inc.

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Opportunity: End-of-Rack Customer (waist size 38”- 46”)

End-of-Rack Improves Quality of Sale

• Spends 120% more than 48”+ customers

• Visits 52% more often than 48”+ customers

• For Q2’ 2017, End-of-Rack was 46.1% of
bottoms business compared to 44.6% in Q2’
2016

Destination XL Group, Inc.

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 Opportunity: Increase Marketing Spend to Build Awareness

(in millions)
• $29.0 million investment in
$40 40 marketing in fiscal 2017.
$30 30 • Return on investment beyond

$20 20 fiscal 2017 due to high customer

retention.
$10 10
• Incremental marketing spend
$0 - more heavily weighted in Q4 ’17.
2013 2014 2015 2016 2017E
• No television/radio advertising in
Marketing Spend Brand Awareness
Q3 ‘16 or Q4 ‘16.

Destination XL Group, Inc.

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Opportunity: Key Marketing Initiatives

Acquisition Retention Reactivation

• XL Rewards program
• Spring media campaign • Direct Mail Reactivations

• New visual
• Fall media campaign • Email Reactivations with
merchandising program
aggressive offers
• Increase digital • Social media
advertising

• Mobile app

Destination XL Group, Inc.

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Opportunity: Digital Engagement
……………………………………………………………….………

Personalization/ Clienteling
Segmentation
Launching “in-store
Changing rules of clienteling” system for
engagement to improved visibility of
streamline customer history,
communications with preferences and more
customers proactive service

Mobile Technology On-line Guided

Selling
Launched DXL mobile
Adding guided selling
app; upgrading mobile
features to our direct
website to best-in-class,
channels to replicate the
progressive technology high-touch, in-store
experience for the direct
consumers
Destination XL Group, Inc.
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 Opportunity: International

• 2 DXL stores opened in Toronto in Q1 2017

• International franchising / licensing model

Destination XL Group, Inc.

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 Key Investment Takeaways

Destination XL Group, Inc. 20

 Key Investment Takeaways: Inventory Productivity

• Through our inventory productivity project, we have reduced our inventory by 20% in our
warehouse and 3% in our stores, year-over-year.
• For fiscal 2017, we expect inventory to be $10.0 million to $14.0 million less than fiscal 2016

Inventory Turn Inventory Days on Hand

2.1 200
2.1

2.0 192
2.0 190 189
2.0
2.0 186
1.9 183
1.9 1.9 180 180
176

1.8 170
Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2
Fiscal 2016 Fiscal 2017 Fiscal 2017
Fiscal 2016

• Inventory Turn is calculated as cost of goods sold, including occupancy costs, divided by average inventory, on a trailing twelve-month basis.
• Inventory Days on Hand is calculated as average inventory divided by cost of goods sold, including occupancy costs, multiplied by number of days
on a trailing twelve-month basis.

Destination XL Group, Inc.

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Key Investment Takeaways: Strong Free Cash Flow
Trend

$13.0-
$18.0
2014 2015 $5.8

2016 2017E

2014 $(15.0)

$(27.1)

Free Cash Flow In millions

*Free Cash Flow is a non-GAAP measure. See Appendix C for a reconciliation to its comparable GAAP measure.

Destination XL Group, Inc.

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Key Investment Takeaways:
Significantly Improving Leverage

$300 $272.2
$257.5
10.0
$250 $218.5
$200 $167.9
$150 3.7
3.3 3.0
$100
$50 2.0

$0 1.0
2013 2014 2015 2016

Market Cap Leverage Ratio

2013 2014 2015 2016 2017E (3)
(assuming mid-
point of guidance)

Total Debt (1) $25.7 $52.3 $69.1 $63.8 $53.8

EBITDA (2) $7.8 $14.1 $23.3 $31.6 $22.5
Debt/EBITDA 3.3 3.7 3.0 2.0 2.4
(1) Gross, before unamortized debt issuance costs.
(2) EBITDA is a non-GAAP measure. See Appendix C for a reconciliation of this non-GAAP measure.
(3) Assuming mid-point of EBITDA guidance and a corresponding $10M decrease in total debt..
Destination XL Group, Inc.
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Key Investment Takeaways:

Quality, Service, Selection

World Class Brand portfolio
Customer Awareness
End-of-Rack Customer
eCommerce
International

Destination XL Group, Inc.

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 April 2017

Destination XL Group, Inc.

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 Appendix A

Q2 2017
Financial Results

Destination XL Group, Inc. 26

Financial Highlights: Q2 2017

Comparable sales edged positive in Q2

+0.1%
• Total Sales increase of 2.8% Q2 2017 vs. Q2 2016

+20.5% E-commerce sales as a percentage of total sales, on a trailing

twelve-month basis, vs. 19.4% for trailing twelve-month at end of Q2
2016

Net loss for Q2

$(3.7) M • Versus net income of $0.2M in Q2 2016
• Includes increase in advertising expense of $1.1M; Impairment
charge for certain store assets of $1.7M

Destination XL Group, Inc.

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Financial Highlights: First Six Months 2017

Comparable sales for YTD a decrease of 0.9%

-0.9% • Total Sales increase of 1.3% YTD 2017 vs. YTD 2016

Net loss for YTD

$(9.8M) • Versus net income of $0.4 million YTD 2016
• Includes increase in advertising expense of $4.6M; Impairment
charge for certain store assets of $1.7M
• Inventory has decreased by $9.0M, or 7.4%, as compared to the
end of the second quarter of last year.

Destination XL Group, Inc.

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Financial Highlights: Key Q2 and YTD 2017 Metrics

EBITDA *
$6.7M
• Versus $8.5M in Q2 2016
• YTD EBITDA of $9.3M vs. $16.9M for YTD 2016

38% 2013
End-of-rack percentage of bottoms business
46.1% • Up from 44.6% in Q2 2016

Shares of common stock repurchased YTD at average price of

$2.49/share
1.9M
• With $7.3M available for future purchases under share
repurchase authorization

* EBITDA is a non-GAAP measure. See Appendix C for a reconciliation of non-GAAP measures to their
comparable GAAP measures.
. Destination XL Group, Inc.
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 Financial Highlights: Six Months 2017 YOY
Gross Margin (% of Sales) SG&A Expense (% of Sales)

46.3% 45.7% 41.6%

38.8%

6 mos 2016 6 mos 2017 6 mos 2016 6 mos 2017

EBITDA ($ in millions)**
Diluted EPS*
$16.9
$0.01 $(0.20)

$(0.14) $9.3

6 mos 2016 6 mos 2017 6 mos 2016 6 mos 2017

* On a non-GAAP basis, EPS, assuming a normalized tax rate, was $(0.12) per diluted share for the first six months of 2017, compared with
$0.01 per diluted share for the first six months of 2016. See Appendix C for a reconciliation to its comparable GAAP measure.
** EBITDA is a non-GAAP measure; see Appendix C for a reconciliation to its comparable GAAP measure.

Destination XL Group, Inc.

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 Financial Highlights: Cash Flow & Balance Sheet
YTD YTD
($ in millions)
Q2 2016 Q2 2017
Capital Expenditures:
DXL stores $9.7 $10.2
Other maintenance/infrastructure 4.1 3.6
Total $13.8 $13.8
Inventory $121.3 $112.3
Clearance inventory 7.7% 7.5%
Total debt* $63.6 $68.3
Borrowings under credit facility* $41.2 $53.4
Excess availability $66.0 $43.7

• Higher DXL CAPEX due to 15 DXL openings YTD 2017 versus 12 openings in prior year

• Inventory decrease of $9.0M, or 7.4% as compared to Q2 2016 as a result of inventory optimization project
• On track to open 20 DXL retail and outlet stores in fiscal 2017 versus 30 openings in prior year
* Net of unamortized debt issuance costs

Destination XL Group, Inc.

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 Financial Highlights: FY 2017 Updated Guidance
($ in millions, except per share data) Guidance
Sales $470.0~$480.0
Total comparable sales increase 1.0%~4.0%
Gross margin 45.5%-46.0%
SG&A expenses 230~290 bps increase
EBITDA* $20.0~$25.0
Net loss per share, diluted $(0.24)~$(0.34)
Adjusted net loss per diluted share * $(0.14)~$(0.21)
Total Capital expenditures Approximately $22.0
DXL capital expenditures Approximately $13.7
Free cash flow* $13.0 to $18.0
Free cash flow before DXL capital $26.7 to $31.7
expenditures*

* EBITDA, Adjusted net loss per diluted share, Free Cash Flow and Free Cash Flow before DXL expenditures are non-GAAP measures. See
Appendix C for a reconciliation of these non-GAAP measures to their comparable GAAP measures.

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 Appendix B

DXL Store Performance Metrics

Destination XL Group, Inc.

DXL Store Performance Metrics:
Consistent 4-Wall Cash Flow Model with High IRR

DXL Average Store Model (1)

($ in 000s; except psf data) Year 1 Year 2 Year 3 Year 4 Year 5

Sales $1,080 $1,220 $1,350 $1,460 $1,570

Sales per Square Foot $155 $175 $195 $210 $225

Gross Margin (net of occupancy) $440 $540 $620 $700 $770

Gross Margin % 40.7% 44.3% 45.9% 47.9% 49.0%

4-Wall Cash Flow (2) $150 $250 $310 $370 $420

4-Wall Cash Flow Margin % (2) 13.9% 20.5% 23.0% 25.3% 26.8%

Payback Period (2) 2.48 years

IRR (5-Year) (3) 36%

(1) Represents the Company’s average expected results for a new DXL store based on internal data.
(2) 4-Wall Cash Flow approximates projected Cash Flow from Operations on a store level.
(3) IRR (Internal Rate of Return) is the rate at which the net present value of cash flows from a project or
investment equal zero. IRR is calculated by taking the initial investment in a store, which includes the
build-out costs, net of tenant allowances, plus the cost of inventory at opening against the projected
cash flows for the first 5 years.

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DXL Store Performance Metrics: Impressive ROI
Performance of DXL stores, by year of opening(1):
Year-1 Sales per sq. ft. CAPEX per sq. ft. (2)

$166 $164 $77 $73

$162 $70 $64 $64
$151
$145

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017E FY 2013 FY 2014 FY 2015 FY 2016 FY 2017E

Average Square Footage

Projected 5-Year IRR
8,636
47% 7,409 6,891 6,660 6,210
37% 41%
35% 32%

FY 2013E FY 2014E FY 2015E FY 2016E FY 2017E FY 2013 FY 2014 FY 2015 FY 2016 FY 2017E

(1) Reflects 51 DXL stores opened in fiscal 2013, 39 DXL stores opened in fiscal 2014, 29 DXL stores opened in fiscal 2015, 26 DXL stores
in fiscal 2016 and 19 DXL stores expected to open in fiscal 2017
(2) Capital expenditures, net of tenant allowances .
Destination XL Group, Inc.
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 Appendix C
Non-GAAP Reconciliation
• The Company uses non−GAAP financial measures, such as “EBITDA,” ”Free Cash Flow,” “Free Cash Flow before DXL Capital Expenditures,” “Adjusted net loss” and
“Adjusted net loss per diluted share” in assessing its operating performance. The Company believes that these non−GAAP measures serve as an appropriate measure to be
used in evaluating the performance of its business. The Company defines EBITDA as Earnings before interest, taxes and depreciation and amortization. Free cash flow is
defined as cash flow from operating activities less capital expenditures. Adjusted net loss and Adjusted net loss per diluted share are calculated assuming a normalized tax
rate of 40%.
• These measures as defined by the Company may not be comparable to similarly titled measures reported by other companies. The Company does not intend for non−GAAP
financial measures to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP. The following tables provide a reconciliation of for
each of these Non-GAAP measures.

GAAP TO NON-GAAP RECONCILIATION OF EBITDA

For the three months ended For the six months ended
July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016
(in millions)
Net income (loss), GAAP basis $ (3.7) $ 0.2 $ (9.8) $ 0.4
Add back:
Provision for income taxes 0.0 0.0 0.1 0.1
Interest expense 0.8 0.8 1.6 1.6
Depreciation and amortization 9.6 7.5 17.4 14.9
EBIT DA, non-GAAP basis $ 6.7 $ 8.5 $ 9.3 $ 16.9

GAAP TO NON-GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)

For the three months ended For the six months ended
July 29, 2017 July 30, 2016 July 29, 2017 July 30, 2016
Per diluted Per diluted Per diluted Per diluted
$ share $ share $ share $ share
(in thousands, except per share data)
Net income (loss) (GAAP basis) $ (3,731) $ (0.08) $ 199 $ 0.00 $ (9,796) $ (0.20) $ 413 $ 0.01

Add back: Actual income tax provision 35 35 64 92

Income tax (provision) benefit, assuming a
normal tax rate of 40% 1,478 (94) 3,893 (202)
Adjusted net income (loss) (non-GAAP basis) $ (2,218) $ (0.05) $ 140 $ 0.00 $ (5,839) $ (0.12) $ 303 $ 0.01

Weighted average number of common shares

outstanding on a diluted basis 48,556 49,953 49,146 49,902

Destination XL Group, Inc.

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Non-GAAP Reconciliation (cont.)
GAAP TO NON-GAAP FREE CASH FLOW RECONCILIATION

For the six months ended

(in millions) July 29, 2017 July 30, 2016

Cash flow from operating activities (GAAP basis) (1) $ 14.3 $ 19.1
Capital expenditures, infrastructure projects (3.6) (4.1)
Free Cash Flow, before DXL capital expenditures $ 10.8 $ 15.0
Capital expenditures for DXL stores (10.2) (9.7)
Free Cash Flow (non-GAAP basis) $ 0.6 $ 5.3

2017 FORECAST GAAP TO NON-GAAP RECONCILIATIONS

Projected
Fiscal 2017
(in millions, except per share data) per diluted share
Net loss (GAAP basis) $(11.7)-$(16.7)
Add back:
Provision for income taxes 0.1
Interest expense 3.0
Depreciation and amortization 33.7
EBIT DA (non-GAAP basis) $20.0-$25.0

Net loss (GAAP basis) $(11.7)-$(16.7) $(0.24)-$(0.34)

Income tax benefit, assuming 40% rate $4.7-$6.7 $0.10-$0.13
Adjusted net loss (non-GAAP basis) $(7.0)-$(10.0) $(0.14)-$(0.21)
Weighted average common shares outstanding - diluted 48.5

Cash flow from operating activities (GAAP basis) $35.0-$40.0

Capital expenditures, infrastructure projects (8.3)
Free Cash Flow, before DXL capital expenditures (non-
GAAP basis) $26.7-$31.7
Capital expenditures for DXL stores (13.7)
Free Cash Flow (non-GAAP basis) $13.0-$18.0

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Investor Contact

Tom Filandro
Managing Director, ICR
646-277-1235 (D)
Tom.Filandro@icrinc.com

www.DestinationXL.com

Destination XL Group, Inc.

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