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Posted On: 05/08/2017 11:45:20 AM
Post# of 2218
$SHLD $BONT $DXLG PART THREE/ 4 Retail Stocks On The Verge Of Bankruptcy
By Josh Enomoto, InvestorPlace Contributor
https://dynamicwealthreport.com/4-retail-stoc...ankruptcy/
Retail Stocks Near Bankruptcy: Destination XL Group (DXLG)
On the surface, Destination XL Group Inc (NASDAQ
XLG) sounds like an ingenious winner among retail stocks. DXLG specializes in “big and tall” apparel, primarily in the U.S., but also in the U.K. We being the land of McDonald’s Corporation (NYSE:MCD), this is a perfect fit. The American waist line continues to expand, which should in turn ring the registers at DXLG.
Unfortunately for DXLG stock, theory and reality do not mix favorably. I can pull up multiple charts and graphs to make my point if I wanted to. Instead, let’s use common experiences. Personally, I’m incredibly cheap, and I suspect, so are many of you. In any store, the first aisle I visit is the discount bin. The problem with apparel retailers is that the discounts are usually only for gigantic sizes.
Maybe I’m a little too slow to the sale. Regardless, Destination XL is embattled because it has too many competitors. At any point in time, a big and tall person can waltz into any apparel store and find incredible deals. That makes DXLG products not unique in the slightest, and therefore, I’m not surprised by its 39.5% downfall this year.
The pain in retail stocks is far from over, and unremarkable businesses like DXLG may end up in bankruptcy.
By Josh Enomoto, InvestorPlace Contributor
https://dynamicwealthreport.com/4-retail-stoc...ankruptcy/
Retail Stocks Near Bankruptcy: Destination XL Group (DXLG)
On the surface, Destination XL Group Inc (NASDAQ
XLG) sounds like an ingenious winner among retail stocks. DXLG specializes in “big and tall” apparel, primarily in the U.S., but also in the U.K. We being the land of McDonald’s Corporation (NYSE:MCD), this is a perfect fit. The American waist line continues to expand, which should in turn ring the registers at DXLG. Unfortunately for DXLG stock, theory and reality do not mix favorably. I can pull up multiple charts and graphs to make my point if I wanted to. Instead, let’s use common experiences. Personally, I’m incredibly cheap, and I suspect, so are many of you. In any store, the first aisle I visit is the discount bin. The problem with apparel retailers is that the discounts are usually only for gigantic sizes.
Maybe I’m a little too slow to the sale. Regardless, Destination XL is embattled because it has too many competitors. At any point in time, a big and tall person can waltz into any apparel store and find incredible deals. That makes DXLG products not unique in the slightest, and therefore, I’m not surprised by its 39.5% downfall this year.
The pain in retail stocks is far from over, and unremarkable businesses like DXLG may end up in bankruptcy.
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