Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~August 15, 2020,~~May 14, 2021, the registrant had ~~51,554,917~~63,526,601 shares of common stock, $0.01 par value per share, outstanding.

	August 1, 2020			February 1, 2020			May 1, 2021			January 30, 2021
	(Fiscal 2020)			(Fiscal 2019)			(Fiscal 2021)			(Fiscal 2020)

ASSETS
Current assets:
Cash and cash equivalents	$	20,414		$	4,338		$	5,843		$	18,997
Accounts receivable		2,574			6,219			4,671			6,416
Inventories		87,388			102,420			88,390			85,028
Prepaid expenses and other current assets		9,908			10,883			6,381			3,689
Total current assets		120,284			123,860			105,285			114,130

Non-current assets:
Property and equipment, net of accumulated depreciation and amortization		65,258			78,279			52,591			56,552
Operating lease right-of-use assets		157,095			186,413			130,061			134,321
Intangible assets		1,150			1,150			1,150			1,150
Other assets		593			1,215			598			602
Total assets	$	344,380		$	390,917		$	289,685		$	306,755

LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current portion of long-term debt							$	74		$	-
Accounts payable	$	18,533		$	31,763			31,639			27,091
Accrued expenses and other current liabilities		20,899			18,123			25,450			24,825
Operating leases, current		45,626			41,176			38,331			43,598
Borrowings under credit facility		66,545			39,301			33,371			59,521
Total current liabilities		151,603			130,363			128,865			155,035

Long-term liabilities:
Long-term debt		14,841			14,813
Long-term debt, net of current portion								16,669			14,869
Operating leases, non-current		165,310			182,051			129,856			135,819
Other long-term liabilities		5,241			5,267			4,811			5,109
Total long-term liabilities		185,392			202,131			151,336			155,797

Commitments and contingencies

Stockholders' equity:
Stockholders' equity (deficit):
Preferred stock, $0.01 par value, 1,000,000 shares authorized, NaN issued		—			—			—			—
Common stock, $0.01 par value, 100,000,000 shares authorized, 63,840,794 and 63,297,598 shares issued at August 1, 2020 and February 1, 2020, respectively		638			633
Common stock, $0.01 par value, 100,000,000 shares authorized, 76,212,032 and 64,656,384 shares issued at May 1, 2021 and January 30, 2021, respectively								762			647
Additional paid-in capital		313,874			312,933			319,443			314,747
Treasury stock at cost, 12,755,873 shares at August 1, 2020 and February 1, 2020		(92,658	)		(92,658	)
Treasury stock at cost, 12,755,873 shares at May 1, 2021 and January 30, 2021								(92,658	)		(92,658	)
Accumulated deficit		(208,494	)		(156,054	)		(211,895	)		(220,592	)
Accumulated other comprehensive loss		(5,975	)		(6,431	)		(6,168	)		(6,221	)
Total stockholders' equity		7,385			58,423
Total liabilities and stockholders' equity	$	344,380		$	390,917
Total stockholders' equity (deficit)								9,484			(4,077	)
Total liabilities and stockholders' equity (deficit)							$	289,685		$	306,755

The accompanying notes are an integral part of the consolidated financial statements.

	For the Three Months Ended						For the Six Months Ended						For the Three Months Ended
	August 1, 2020			August 3, 2019			August 1, 2020			August 3, 2019			May 1, 2021			May 2, 2020
	(Fiscal 2020)			(Fiscal 2019)			(Fiscal 2020)			(Fiscal 2019)			(Fiscal 2021)			(Fiscal 2020)

Sales	$	76,442		$	123,245		$	133,669		$	236,218		$	111,494		$	57,227
Cost of goods sold including occupancy costs		54,945			68,676			98,958			132,236			60,661			44,013
Gross profit		21,497			54,569			34,711			103,982			50,833			13,214

Expenses:
Selling, general and administrative		25,795			47,478			57,907			92,089			37,118			32,112
CEO transition costs		—			—			—			702
Impairment of assets		—			—			16,335			—			(652	)		16,335
Depreciation and amortization		5,340			6,210			11,072			12,548			4,500			5,732
Total expenses		31,135			53,688			85,314			105,339			40,966			54,179

Operating income (loss)		(9,638	)		881			(50,603	)		(1,357	)		9,867			(40,965	)

Interest expense, net		(1,052	)		(851	)		(1,793	)		(1,715	)		(1,142	)		(741	)

Income (loss) before provision (benefit) for income taxes		(10,690	)		30			(52,396	)		(3,072	)
Provision (benefit) for income taxes		24			(8	)		44			(29	)
Income (loss) before provision for income taxes														8,725			(41,706	)
Provision for income taxes														28			20


Net income (loss)	$	(10,714	)	$	38		$	(52,440	)	$	(3,043	)	$	8,697		$	(41,726	)


Net income (loss) per share - basic and diluted	$	(0.21	)	$	0.00		$	(1.03	)	$	(0.06	)	$	0.14		$	(0.82	)

Weighted-average number of common shares outstanding:
Basic		51,078			49,867			50,918			49,734			62,153			50,758
Diluted		51,078			50,175			50,918			49,734			63,000			50,758

The accompanying notes are an integral part of the consolidated financial statements.

	For the Three Months Ended						For the Six Months Ended						For the Three Months Ended
	August 1, 2020			August 3, 2019			August 1, 2020			August 3, 2019			May 1, 2021			May 2, 2020
	(Fiscal 2020)			(Fiscal 2019)			(Fiscal 2020)			(Fiscal 2019)			(Fiscal 2021)			(Fiscal 2020)
Net income (loss)	$	(10,714	)	$	38		$	(52,440	)	$	(3,043	)	$	8,697		$	(41,726	)

Other comprehensive income before taxes:
Foreign currency translation		(5	)		(59	)		(39	)		(83	)		(25	)		(34	)
Pension plans		253			191			495			392			78			242
Other comprehensive income before taxes		248			132			456			309			53			208
Tax provision related to items of other comprehensive income		—			(30	)		—			(81	)		—			—
Other comprehensive income, net of tax		248			102			456			228			53			208
Comprehensive income (loss)	$	(10,466	)	$	140		$	(51,984	)	$	(2,815	)	$	8,750		$	(41,518	)

The accompanying notes are an integral part of the consolidated financial statements.

Accumulated

Additional

Other

Common Stock

Paid-in

Treasury Stock

Accumulated

Comprehensive

Shares

Amounts

Capital

Shares

Amounts

Deficit

Income (Loss)

Total

Balance at February 1, 2020

63,297

$
633

$
312,933

(12,755
)

$
(92,658
)

$
(156,054
)

$
(6,431
)

$
58,423

Board of directors compensation

93

1

148

149

Stock compensation expense

452

452

Issuance of common stock, upon RSUs release

437

4

(4
)

—

Deferred stock vested

6

—

—

—

Accumulated other comprehensive income (loss):

Pension plan, net of taxes

242

242

Foreign currency, net of taxes

(34
)

(34
)
Net loss

(41,726
)

(41,726
)
Balance at May 2, 2020

63,833

$
638

$
313,529

(12,755
)

$
(92,658
)

$
(197,780
)

$
(6,223
)

$
17,506

Stock compensation expense

345

345

Deferred stock vested

8

—

—

—

Accumulated other comprehensive income (loss):

Pension plan, net of taxes

253

253

Foreign currency, net of taxes

(5
)

(5
)
Net loss

(10,714
)

(10,714
)
Balance at August 1, 2020

63,841

$
638

$
313,874

(12,755
)

$
(92,658
)

$
(208,494
)

$
(5,975
)

$
7,385

																	Accumulated
					Additional												Other
	Common Stock				Paid-in			Treasury Stock						Accumulated			Comprehensive
	Shares		Amounts		Capital			Shares			Amounts			Deficit			Income (Loss)			Total
Balance at January 30, 2021		64,656	$	647	$	314,747			(12,755	)	$	(92,658	)	$	(220,592	)	$	(6,221	)	$	(4,077	)
Issuance of common stock through private direct offering, net of offering costs		11,111		111		4,264															4,375
Board of directors compensation		137		1		108															109
Stock compensation expense						327															327
Issuance of common stock, upon RSUs release		308		3		(3	)														—
Accumulated other comprehensive income (loss):
Pension plan, net of taxes																		78			78
Foreign currency, net of taxes																		(25	)		(25	)
Net income															8,697						8,697
Balance at May 1, 2021		76,212	$	762	$	319,443			(12,755	)	$	(92,658	)	$	(211,895	)	$	(6,168	)	$	9,484

The accompanying notes are an integral part of the consolidated financial statements.

																		Accumulated
						Additional												Other																						Accumulated
	Common Stock					Paid-in			Treasury Stock						Accumulated			Comprehensive										Additional												Other
	Shares			Amounts		Capital			Shares			Amounts			Deficit			Income (Loss)			Total			Common Stock				Paid-in			Treasury Stock						Accumulated			Comprehensive
Balance at February 2, 2019		62,242		$	622	$	310,393			(12,755	)	$	(92,658	)	$	(153,534	)	$	(6,183	)	$	58,640
																								Shares		Amounts		Capital			Shares			Amounts			Deficit			Income (Loss)			Total
Balance at February 1, 2020																									63,297	$	633	$	312,933			(12,755	)	$	(92,658	)	$	(156,054	)	$	(6,431	)	$	58,423
Board of directors compensation		36			—		142															142			93		1		148															149
Stock compensation expense							414															414							452															452
RSUs granted for achievement of performance-based compensation, reclassified from liability to equity							304															304
Issuance of common stock, upon RSUs release		374			4		(4	)														—			437		4		(4	)														—
Shares withheld for taxes related to net share settlement of RSUs		(78	)		—		(192	)														(192	)
Deferred stock vested		2			—		—															—			6		—		—															—
Change in accounting principle due to adoption of ASC 842																5,276						5,276
Accumulated other comprehensive income (loss):
Pension plan, net of taxes																			150			150																			242			242
Foreign currency, net of taxes																			(24	)		(24	)																		(34	)		(34	)
Net loss																(3,081	)					(3,081	)															(41,726	)					(41,726	)
Balance at May 4, 2019		62,576		$	626	$	311,057			(12,755	)	$	(92,658	)	$	(151,339	)	$	(6,057	)	$	61,629
Board of directors compensation		45			—		142															142
Stock compensation expense							514															514
Issuance of common stock, upon RSUs release		67			1		(1	)														—
Shares withheld for taxes related to net share settlement of RSUs		(3	)		—		(6	)														(6	)
Cancellation of restricted stock		(20	)		—		—															—
Deferred stock vested		3			—		—															—
Accumulated other comprehensive income (loss):
Pension plan, net of taxes																			142			142
Foreign currency, net of taxes																			(40	)		(40	)
Net income																38						38
Balance at August 3, 2019		62,668		$	627	$	311,706			(12,755	)	$	(92,658	)	$	(151,301	)	$	(5,955	)	$	62,419
Balance at May 2, 2020																									63,833	$	638	$	313,529			(12,755	)	$	(92,658	)	$	(197,780	)	$	(6,223	)	$	17,506

The accompanying notes are an integral part of the consolidated financial statements.

	For the Six Months Ended						For the three months ended
	August 1, 2020			August 3, 2019			May 1, 2021			May 2, 2020
	(Fiscal 2020)			(Fiscal 2019)			(Fiscal 2021)			(Fiscal 2020)
Cash flows from operating activities:
Net loss	$	(52,440	)	$	(3,043	)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Net income (loss)							$	8,697		$	(41,726	)
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Amortization of deferred debt issuance costs		72			69			215			35
Impairment of assets		16,335			—			(652	)		16,335
Depreciation and amortization		11,072			12,548			4,500			5,732
Stock compensation expense		797			928			327			452
Board of directors stock compensation		149			284			109			149

Changes in operating assets and liabilities:
Accounts receivable		3,645			23			1,745			4,281
Inventories		15,032			(3,537	)		(3,362	)		(5,905	)
Prepaid expenses and other current assets		975			(889	)		(2,692	)		5,920
Other assets		622			(441	)		4			606
Accounts payable		(13,230	)		2,511			4,548			98
Operating leases, net		4,487			(2,115	)		(6,318	)		(1,327	)
Accrued expenses and other liabilities		3,488			(5,420	)		644			(1,461	)
Net cash provided by (used for) operating activities		(8,996	)		918			7,765			(16,811	)

Cash flows from investing activities:
Additions to property and equipment, net		(2,128	)		(7,597	)		(803	)		(1,590	)
Net cash used for investing activities		(2,128	)		(7,597	)		(803	)		(1,590	)

Cash flows from financing activities:
Net borrowings under credit facility		27,225			7,502
Debt issuance costs associated with credit facility amendment		(25	)		—
Tax withholdings paid related to net share settlements of RSUs		—			(198	)
Net cash provided by financing activities		27,200			7,304
Net increase in cash and cash equivalents		16,076			625
Proceeds from issuance of common stock from private direct offering, net of offering costs								4,375			—
Repayment of existing FILO loan								(15,000	)		—
Proceeds from new FILO loan								17,500			—
Net borrowings (repayments) under credit facility								(26,173	)		40,214
Debt issuance costs								(818	)		(4	)
Net cash provided by (used for) financing activities								(20,116	)		40,210
Net increase (decrease) in cash and cash equivalents								(13,154	)		21,809
Cash and cash equivalents:
Beginning of period		4,338			4,868			18,997			4,338
End of period	$	20,414		$	5,493		$	5,843		$	26,147

The accompanying notes are an integral part of the consolidated financial statements.

In the opinion of management of Destination XL Group, Inc., a Delaware corporation (collectively with its subsidiaries, referred to as the “Company”), the accompanying unaudited Consolidated Financial Statements contain all adjustments necessary for a fair presentation of the interim financial statements. These financial statements do not include all disclosures associated with annual financial statements and, accordingly, should be read in conjunction with the notes to the Company’s audited Consolidated Financial Statements for the fiscal year ended ~~February 1, 2020~~January 30, 2021 included in the Company’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on March 19, ~~2020.~~2021.

The information set forth in these statements may be subject to normal year-end adjustments. The information reflects all adjustments that, in the opinion of management, are necessary to present fairly the Company’s results of operations, financial position and cash flows for the periods indicated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s business historically has been seasonal in nature, and the results of the interim periods presented are not necessarily indicative of the results to be expected for the full year.

The Company’s fiscal year is a 52- or 53- week period ending on the Saturday closest to January 31. Fiscal ~~2020~~2021 and fiscal ~~2019~~2020 are 52-week periods ending on January 29, 2022 and January 30, 2021, ~~and February 1, 2020,~~ respectively.

~~Impact of~~ COVID-19 Pandemic and its impact on ~~Business~~results and comparability of financial statements

On March 11, 2020, the World Health Organization declared the current outbreak of a novel coronavirus disease (“COVID-19”) as a global pandemic. The COVID-19 pandemic ~~has~~ had an adverse effect on the Company’s operations ~~employees, distribution and logistics, its vendors and customers.~~during fiscal 2020. All of the Company’s store locations were closed temporarily on March 17, 2020 and the majority of the Company’s workforce was furloughed in March 2020. The Company began reopening stores in late April and by the end of June 2020 all retail stores had been ~~reopened.~~ ~~While all of our stores are open, they are operating~~reopened but the majority with reduced operating ~~hours and it has been and may continue to be necessary to close and re-open stores in response to any ongoing COVID concerns.~~

In response to the uncertainty that exists relating to the COVID-19 pandemic, the Company has taken significant precautionary measures to reduce expenses, preserve liquidity, and mitigate the adverse impact of the pandemic to the Company. The majority of the Company’s workforce was furloughed in March 2020 and 34 employees were laid-off in May 2020. As store locations were reopened, employees were gradually brought back, however, due to the reduced store traffic and sales, 430 store associates were laid-off in July. For the safety of its employees, employees at the Company’s headquarters will continue to work from home, where possible, until at least January 2021. For store personnel and roles that require employees to be on-site, such as its distribution center, the Company is providing protective equipment, practicing social distancing and has increased sanitizing standards. The management team (director-level and above) took a temporary salary reduction ranging from 10%-20% during the period April 5, 2020 through August 2, 2020 and the Company’s non-employee directors suspended their second quarter fiscal 2020 compensation.

hours. In March 2020, as a proactive measure, the Company drew $30.0 million under its revolving facility in order to increase the Company’s cash position and preserve financial flexibility. In addition, in April 2020 the Company entered into an amendment to its credit facility to, among other things, increase its borrowing base availability and permit the Company the ability to enter into promissory notes with its merchandise vendors. See Note 3, ~~Debt, for a discussion of the amendment.~~ During the second quarter of fiscal 2020, the Company entered into rent concessions with the majority of its landlords, in the form of rent abatements, rent deferments and, to a lesser extent, lease term extensions. ~~See Note 4,~~ ~~Leases~~,As a result of the impact of the pandemic on our business in fiscal 2020, including the closure of all of our stores in the first quarter of fiscal 2020, results for ~~more discussion. Further, since early March,~~ the ~~Company has taken proactive steps~~first quarter fiscal of 2021 may not be comparable to ~~manage cash by substantially eliminating capital spend, negotiating deferred payment terms~~the results for the first quarter of fiscal 2020.

While vaccines are being widely distributed and many areas where our stores are located are beginning to re-open with ~~vendors~~limited or no restrictions, the duration of the COVID-19 pandemic and ~~in limited cases, entering into short term notes, reducing operating expenses~~its variants remain uncertain and ~~cancelling purchase orders for merchandise, where possible. The Company intends to proceed cautiously and~~could continue to ~~take proactive steps to manage its liquidity.~~have a material adverse impact on the Company’s results of operations, financial condition and cash flows.

The Company has 3 principal operating segments: its stores, direct and ~~wholesales~~wholesale businesses. The Company considers its stores and direct operating segments to be similar in terms of economic characteristics, production processes and operations, and has therefore aggregated them into 1 reportable segment, retail segment, consistent with its omni-channel business approach. Due to the immateriality of the wholesale segment’s revenues, profits and assets, its operating results are aggregated with the retail segment for both periods.

In fiscal 2018, the Company purchased the rights to the domain name “dxl.com.” The domain name has a carrying value of $1.2 million and is considered an indefinite-lived asset. Due to the significant impact of the COVID-19 pandemic on the Company’s business during the first six months of fiscal 2020, the Company performed a qualitative review of the domain name as of May 2, 2020 and August 1, 2020, and concluded that it was more likely than not that the intangible asset was not impaired and therefore no quantitative assessment was required. As a result of the ongoing uncertainty surrounding the impact of the COVID-19 pandemic on the Company’s operations, it may be necessary to perform similar qualitative reviews at various points throughout the remainder of fiscal 2020.

During the first ~~six~~three months ended May 1, 2021, no event or circumstance occurred which would cause a reduction in the fair value of fiscal 2020, the Company received extended payment terms with certain of its merchandise vendors, by entering into short-term notes. The short-term notes, totaling $3.5 million, have terms of less than one-year and accrue interest at an annual rate of 4.0%, with payments due monthly. At August 1, 2020, the outstanding balance of the notes was $2.0 million and is included in Accounts Payable on the Consolidated Balance Sheet.this intangible asset.

ASC Topic 825, Financial Instruments, requires disclosure of the fair value of certain financial instruments. ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements.

The valuation techniques utilized are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of assets or liabilities.

The Company utilizes observable market inputs (quoted market prices) when measuring fair value whenever possible.

The fair value of long-term debt is classified within Level 2 of the valuation hierarchy. At ~~August~~May 1, ~~2020,~~2021, the fair value approximated the carrying amount based upon terms available to the Company for borrowings with similar arrangements and remaining maturities.

The fair value of the “dxl.com” domain name, an indefinite-lived asset, is measured on a non-recurring basis in connection with the Company’s annual impairment test and is classified within Level 3 of the valuation hierarchy. See Intangibles above.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and short-term borrowings approximate fair value because of the short maturity of these instruments.

Other comprehensive income (loss) includes amounts related to foreign currency and pension plans and is reported in the Consolidated Statements of Comprehensive Income (Loss). Other comprehensive income (loss) and reclassifications from AOCI for the three ~~and six~~ months ended ~~August~~May 1, ~~2020~~2021 and ~~August 3, 2019,~~May 2, 2020, respectively, were as follows:

August 1, 2020

August 3, 2019

For the three months ended:

(in thousands)

Pension
Plans

Foreign
Currency

Total

Pension
Plans

Foreign
Currency

Total

Balance at beginning of the quarter

$
(6,236
)

$
13

$
(6,223
)

$
(5,371
)

$
(686
)

$
(6,057
)

Other comprehensive income (loss) before
reclassifications, net of taxes

77

(5
)

72

27

(40
)

(13
)

Amounts reclassified from accumulated other
comprehensive income, net of taxes ⁽¹⁾

176

—

176

115

—

115

Other comprehensive income (loss) for the period

253

(5
)

248

142

(40
)

102

Balance at end of quarter

$
(5,983
)

$
8

$
(5,975
)

$
(5,229
)

$
(726
)

$
(5,955
)

	August 1, 2020									August 3, 2019									May 1, 2021									May 2, 2020
For the six months ended:	(in thousands)
For the three months ended:																			(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(6,478	)	$	47		$	(6,431	)	$	(5,521	)	$	(662	)	$	(6,183	)
Balance at beginning of the quarter																			$	(6,224	)	$	3		$	(6,221	)	$	(6,478	)	$	47		$	(6,431	)

Other comprehensive income (loss) before reclassifications, net of taxes		154			(39	)		115			55			(64	)		(9	)		90			(25	)		65			77			(34	)		43

Amounts reclassified from accumulated other comprehensive income, net of taxes ⁽¹⁾		341			—			341			237			—			237			(12	)		—			(12	)		165			—			165

Other comprehensive income (loss) for the period		495			(39	)		456			292			(64	)		228			78			(25	)		53			242			(34	)		208

Balance at end of quarter	$	(5,983	)	$	8		$	(5,975	)	$	(5,229	)	$	(726	)	$	(5,955	)	$	(6,146	)	$	(22	)	$	(6,168	)	$	(6,236	)	$	13		$	(6,223	)

All share-based payments, including grants of employee stock options and restricted stock, are recognized as an expense in the Consolidated Statements of Operations based on their fair values and vesting periods. The fair value of stock options is determined using the Black-Scholes valuation model and requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their vested stock options before exercising them (the “expected term”), the estimated volatility of the Company’s common stock price over the expected term and the number of options that will ultimately not complete their vesting requirements (“forfeitures”). The Company reviews its valuation assumptions at each grant date and, as a result, is likely to change its valuation assumptions used to value employee stock-based awards granted in future periods. The values derived from using the Black-Scholes model are recognized as an expense over the vesting period, net of estimated forfeitures. The estimation of stock-based awards that will ultimately vest requires judgment. Actual results and future changes in estimates may differ from the Company’s current estimates.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the assumptions in the table below as it relates to stock options granted during the first ~~six~~three months of fiscal ~~2020.~~2021. There were no grants of stock options during the first ~~six~~three months of fiscal ~~2019.~~2020.

The Company has outstanding performance stock units (PSUs) with a market condition. The respective grant-date fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model. The valuation included assumptions with respect to the Company’s historical volatility, risk-free rate and cost of equity.

The Company reviews its long-lived assets for events or changes in circumstances that might indicate the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of the assets by determining whether the carrying value of such assets over their respective remaining lives can be recovered through projected undiscounted future cash flows. The model for undiscounted future cash flows includes assumptions, at the individual store level, with respect to expectations for future sales and gross margin rates as well as an estimate for occupancy costs used to estimate the fair value of the respective store’s operating lease right-of-use asset. The amount of impairment, if any, is measured based on projected discounted future cash flows using a discount rate reflecting the Company’s average cost of funds.

AsFor the first quarter of fiscal 2021, the Company recognized a non-cash gain of $0.8 million, related to the Company’s decision to close certain retail stores, which resulted in a revaluation of the existing lease liabilities. To the extent that such gain related to previously recorded impairment charges against the operating lease right-of-use asset, $0.7 million of the gain was included as an offset to asset impairment charges with the remaining $0.1 million of the gain included as a reduction in store occupancy costs.

In the first quarter of fiscal 2020, as a result of the significant impact of the COVID-19 pandemic on the Company’s business ~~during the first quarter of fiscal 2020~~ and the continued uncertainty ~~the Company reassessed the recoverability of the carrying value for its long-lived assets as of May 2, 2020, assuming~~at that ~~its stores would gradually open~~ ~~throughout~~ the second quarter of fiscal 2020 but that consumer retail spending will remain substantially curtailed for a period of time. Due to uncertainty around the duration and extent of the pandemic’s impact on future cash flows, the Company’s projections were based on multiple probability-weighted scenarios. Based on the results of that assessment,time, the Company recorded an impairment charge of $16.3 million in the first quarter of fiscal 2020. The impairment charge included approximately $12.5 million for the write-down of certain right-of-use assets and $3.8 million for the write-down of property and equipment, related to stores where the carrying value exceeded fair value.

~~There was 0 material impairment of long-lived assets in the second quarter of fiscal 2020 or for first six months of fiscal 2019.~~

The Company adopted ASU 2016-02, “Leases (Topic 842)” in ~~the first quarter of~~ fiscal ~~2019 on a modified retrospective basis and applied the new standard to all leases through a cumulative-effect adjustment to beginning accumulated deficit.~~

2019. Under ASC 842, the Company determines if an arrangement contains a lease at the inception of a contract. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of the remaining future minimum lease payments, initial direct costs and any lease incentives are included in the value of those right-of use assets. As the interest rate implicit in the Company’s leases is not readily determinable, the Company utilizes its incremental borrowing rate, based on information available at the lease measurement date to determine the present value of future payments. The Company elected the lessee non-lease component separation practical expedient, which permits the Company to not separate non-lease components from the lease components to which they relate. The Company also made an accounting policy election that the recognition requirement of ASC 842 will not be applied to certain, if any, non-store leases, with a term of 12 months or less, recognizing those lease payments on a straight-line basis over the lease term. At ~~August~~May 1, ~~2020,~~2021, the Company ~~has~~had 0 short-term leases.

The Company’s store leases typically contain options that permit renewals for additional periods of up to five years each. In general, for store leases with an initial term of 10 years or more, the options to extend are not considered reasonably certain at lease commencement. For stores leases with an initial term of 5 years, the Company evaluates each lease independently and, only when the Company considers it reasonably certain that it will exercise an option to extend, will the associated payment of that option be included in the measurement of the right-of-use asset and lease liability. Renewal options are not included in the lease term for automobile and equipment leases because they are not considered reasonably certain of being exercised at lease commencement. Renewal options were not considered for the Company’s corporate headquarters and distribution center lease, which was entered into in 2006 and was for an initial 20-year term. At the end of the initial term, the Company will have the opportunity to extend this lease for 6 additional successive periods of five years.

For store leases, the Company accounts for lease components and non-lease components as a single lease component. Certain store leases may require additional payments based on sales volume, as well as reimbursement for real estate taxes, common area maintenance and insurance, and are expensed as incurred as variable lease costs. Other store leases contain one periodic fixed lease payment that includes real estate taxes, common area maintenance and insurance. These fixed payments are considered part of the lease payment and included in the right-of-use assets and lease liabilities. Tenant allowances are included as an offset to the right-of-use asset and amortized as reductions to rent expense over the associated lease term.

~~In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments.” This guidance amends several aspects of the measurement of credit losses on financial instruments, including trade receivables.~~ Topic 326 replaces the existing incurred credit loss model with an impairment model (known as the current expected credit loss ("CECL") model), which is based on expected losses rather than incurred losses. The amendments are effective ~~for fiscal years, and interim periods within those fiscal years,~~ ~~beginning after December 15, 2019. The Company adopted this standard in the first quarter of fiscal 2020 and it did not have a material impact on the Company’s Consolidated Financial Statements.~~

~~In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.”~~ This guidance modifies the disclosure requirements on fair value measurements in Topic 820 by removing disclosures regarding transfers between Level 1 and Level 2 of the fair value hierarchy, by modifying the measurement uncertainty disclosure, and by requiring additional disclosures for Level 3 fair value measurements, among others. The Company adopted this standard in the first quarter of fiscal 2020 with new disclosures adopted on a prospective basis. The adoption of this standard did not have a material impact on the Company’s Consolidated Financial Statements and related disclosures.

~~In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes.”~~ ~~This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740,~~ ~~Income Taxes~~, while also clarifying and amending existing guidance, including interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. In the first quarter of fiscal 2020, the Company elected early adoption of ASU 2019-12. The provisions related to intra period tax allocation and interim recognition of enactment of tax laws are being adopted on a prospective basis. The effect of the adoption of ASU 2019-12 was not material to the Company's ~~Consolidated Financial Statements~~.

No new accounting pronouncements, issued or effective during the first ~~six~~three months of fiscal ~~2020,~~2021, have had or are expected to have a significant impact on the Company’s Consolidated Financial Statements.

The Company operates as a retailer of big and tall men’s clothing, which includes stores, direct and wholesale. Revenue is recognized by the operating segment that initiates a customer’s order. Store sales are defined as sales that originate and are fulfilled directly at the store level. Direct sales are defined as sales that originate online, including those initiated online at the store level, on its website or on third-party marketplaces. Wholesale sales are defined as sales made to wholesale customers pursuant to the terms of each customer’s contract with the Company. Generally, all revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration in exchange for those goods. Sales tax collected from customers and remitted to taxing authorities is excluded from revenue and is included as part of accrued expenses on the Consolidated Balance Sheets.

Unredeemed Gift Cards, Gift Certificates, and Credit Vouchers. Upon issuance of a gift card, gift certificate, or credit voucher, a liability is established for its cash value. The liability is relieved and net sales are recorded upon redemption by the customer. Based on historical redemption patterns, the Company can reasonably estimate the amount of gift cards, gift certificates, and credit vouchers for which redemption is remote, which is referred to as “breakage”. Breakage is recognized over two years in proportion to historical redemption trends and is recorded as sales in the Consolidated Statements of Operations. The gift card liability, net of breakage, was ~~$2.1~~$2.2 million and ~~$2.7~~$2.8 million at ~~August~~May 1, ~~2020~~2021 and ~~February 1, 2020,~~January 30, 2021, respectively.

Unredeemed Loyalty Coupons. The Company offers a free loyalty program to its customers for which points accumulate based on the purchase of merchandise. Over 90% of the Company’s customers participate in the loyalty program. Under ASC 606, Revenue from Contracts with Customers, these loyalty points provide the customer with a material right and a distinct performance obligation with revenue deferred and recognized when the points are expected to redeem or expire. The cycle of earning and redeeming loyalty points is generally under one year in duration. The loyalty accrual, net of breakage, was $1.0 million and $1.0 million at ~~August~~May 1, ~~2020~~2021 and ~~February 1, 2020,~~January 30, 2021, respectively.

Shipping. Shipping and handling costs are accounted for as fulfillment costs and are included in cost of sales for all periods presented. Amounts related to shipping and handling that are billed to customers are recorded in sales, and the related costs are recorded in cost of goods sold, including occupancy costs, in the Consolidated Statements of Operations.

As noted above under Segment Information in Note 1, the Company’s business consists of 1 reportable segment, its retail segment. Substantially all of the Company’s revenue is generated from its stores and direct businesses. The operating results from the

wholesale segment, which were immaterial, have been aggregated with this reportable segment, but the revenues are separately reported below. Accordingly, the Company has determined that the following sales channels depict the nature, amount, timing, and uncertainty of how revenue and cash flows are affected by economic factors:

	For the three months ended								For the six months ended								For the three months ended
(in thousands)	August 1, 2020				August 3, 2019				August 1, 2020				August 3, 2019				May 1, 2021				May 2, 2020
Store sales	$	38,465	53.9	%	$	95,119	78.9	%	$	70,792	55.9	%	$	181,834	78.7	%	$	74,880	69.1	%	$	32,327	58.6	%
Direct sales		32,959	46.1	%		25,406	21.1	%		55,841	44.1	%		49,239	21.3	%		33,542	30.9	%		22,882	41.4	%
Retail segment	$	71,424			$	120,525			$	126,633			$	231,073			$	108,422			$	55,209
Wholesale segment		5,018				2,720				7,036				5,145				3,072				2,018
Total Sales	$	76,442			$	123,245			$	133,669			$	236,218			$	111,494			$	57,227

On May 24, 2018, the Company entered into the Seventh Amended and Restated Credit Agreement, as amended, with Bank of America, N.A., as agent, providing for a secured ~~$140.0~~$125.0 million ~~credit facility.~~revolver facility and a $15.0 million “first-in, last-out” (FILO) term facility (the “existing FILO loan”). On ~~April 15, 2020,~~March 16, 2021, the Company entered into ~~a Third~~the Fourth Amendment to the Seventh Amended and Restated Credit Facility, as amended (the ~~“Third~~“Fourth Amendment”)~~. The Third Amendment, among other things, (i) extended~~ to allow for the ~~current advance rate~~refinancing of ~~10%~~the “existing FILO loan”, which is discussed further under the “first-in, last out” (FILO) term facility (the “FILO loan”), from May 24, 2020 to December 31, 2020, at which time it will step-down to 7.5%; (ii) lowered the Loan Cap, as described below, and eliminated the springing financial covenant, (iii) increased the Applicable Margins under the FILO and Revolving Facility (defined below) by 150 basis points and (iv) permitted the Company to enter into promissory notes with vendors in satisfaction of outstanding payables for existing goods, in an aggregate amount not to exceed $15.0 million“Long-Term Debt” (as amended, the “Credit Facility”). The Fourth Amendment did not impact the terms to the Company’s $125.0 million revolver facility.

The Credit Facility provides maximum committed borrowings of $125.0 million in revolver loans, with the ability, pursuant to an accordion feature, to increase the Credit Facility by an additional $50.0 million upon the request of the Company and the agreement of the lender(s) participating in the increase (the “Revolving Facility”). The Revolving Facility provides for a sublimit of $20.0 million for commercial and standby letters of credit and up to $15.0 million for swingline loans. The Company’s ability to borrow under the Revolving Facility (the “Loan Cap”) is determined using an availability formula based on eligible assets. Pursuant to the Third Amendment, the excess availability under the Credit Facility cannot be less than the greater of (i) 10% of the Revolving Loan Cap (calculated without giving effect to the FILO (first-in, last-out) Push Down Reserve) or (ii) $10.0 million. The maturity date of the Credit Facility is May 24, 2023. The Company’s obligations under the Credit Facility are secured by a lien on substantially all of its assets.

To help manage its near-term liquidity in light of the uncertainty related to COVID-19 and provide financial flexibility, the Company drew $30.0 million under its secured revolving credit facility in March 2020. At ~~August~~May 1, ~~2020,~~2021, the Company had outstanding borrowings under the Revolving Facility of ~~$66.8~~$33.6 million, before unamortized debt issuance costs of ~~$0.3~~$0.2 million. At ~~August~~May 1, ~~2020,~~2021, outstanding standby letters of credit were ~~$2.8~~$2.7 million and there were 0 outstanding documentary ~~letters of credit were $0.6 million.~~letters. Unused excess availability was ~~$12.4~~$51.1 million at ~~August~~May 1, ~~2020.~~2021. Average monthly borrowings outstanding under the Revolving Facility during the first ~~six~~three months of fiscal ~~2020~~2021 were ~~$69.2~~$51.2 million, resulting in an average unused excess availability of approximately ~~$23.2~~$24.3 million. The Company’s ability to borrow under the Revolving Facility was determined using an availability formula based on eligible assets, with increased advance rates based on seasonality.

Borrowings made pursuant to the Revolving Facility bear interest, calculated under either the Federal Funds rate or the LIBOR rate, at a rate equal to the following: (a) the Federal Funds rate plus a varying percentage based on the Company’s excess availability, of either 1.75% or 2.00%, or (b) the LIBOR rate (the Company being able to select interest periods of 1 week, 1 month, 2 months, 3 months or 6 months) plus a varying percentage based on the Company’s excess availability, of either 2.75% or 3.00%. The Company was also subject to an unused line fee of 0.25%. At ~~August~~May 1, ~~2020,~~2021, the Company’s prime-based interest rate was 5.25%. At ~~August~~May 1, ~~2020,~~2021, the Company had approximately ~~$62.0~~$28.0 million of its outstanding borrowings in LIBOR-based contracts with an interest rate of 4.00%. The LIBOR-based contracts expired on ~~August~~May 3, ~~2020.~~2021. When a LIBOR-based borrowing expires, the borrowings revert back to prime-based borrowings unless the Company enters into a new LIBOR-based borrowing arrangement.

Borrowings and repayments under the Revolving Facility for the ~~six~~three months ended ~~August~~May 1, ~~2020~~2021 and ~~August 3, 2019~~May 2, 2020 were as follows:

	For the six months ended						For the three months ended
(in thousands)	August 1, 2020			August 3, 2019			May 1, 2021			May 2, 2020
Borrowings	$	53,471		$	72,384		$	15,136		$	52,560
Repayments		(26,246	)		(64,882	)		(41,309	)		(12,346	)
Net borrowings (repayments)	$	27,225		$	7,502		$	(26,173	)	$	40,214

The fair value of the amount outstanding under the Revolving Facility at ~~August~~May 1, ~~2020~~2021 approximated the carrying value.

Long-term debt at ~~August~~May 1, ~~2020~~2021 and ~~February 1, 2020~~January 30, 2021 is as follows:

(in thousands)	August 1, 2020			February 1, 2020			May 1, 2021			January 30, 2021
FILO Loan	$	15,000		$	15,000
FILO Loan –existing								—		$	15,000
FILO Loan – new							$	17,500			—
Less: unamortized debt issuance costs		(159	)		(187	)		(757	)		(131	)
Total long-term debt		14,841			14,813			16,743			14,869
Less: current portion of long-term debt		—			—
Less: current portion of long-term debt, net of debt issuance costs								(74	)		—
Long-term debt, net of current portion	$	14,841		$	14,813		$	16,669		$	14,869

On March 16, 2021, the Company refinanced its existing $15.0 million FILO loan and entered into a new $17.5 million FILO loan (the “new FILO loan”). The total borrowing capacity under the new FILO loan is based on a borrowing base, generally defined as a specified percentage of the value of eligible accounts (including certain trade names) that step down over time, plus a specified percentage of the value of eligible inventory that steps down over time.

The ~~Third Amendment~~new FILO loan will be subject to quarterly principal repayments of $218,750 beginning December 31, 2021. The new FILO loan is subject to a prepayment penalty, if any portion of the principal for the new FILO Loan is prepaid during the initial two-year period, equal to the greater of (i) the incremental interest that would have been incurred with respect to that principal repayment during the two year period and (ii) 3% of the principal prepayment, unless the prepayment occurs after March 16, 2022 in connection with the Company’s renegotiation of its Credit ~~Facility extended these advance rates by approximately seven months before they begin~~Agreement in which case the prepayment premium would be equal to ~~step down.~~1% of the principal prepayment. The new FILO ~~loan can be repaid, in whole or in part, subject to certain payment conditions. The term~~ loan expires on May 24, 2023, ~~if not repaid~~but may be automatically extended in ~~full prior to that date.~~

~~As a result~~connection with any extension of ~~extending~~ the ~~advance rates~~revolving facility under the Credit Agreement, but no later than March 16, 2026, without approval from the FILO ~~loan, the applicable margin rates for borrowings were increased by approximately 150 basis points. Accordingly,~~ bo~~rrowings~~lender.

Borrowings made under the new FILO loan will bear interest, ~~calculated under either the Federal Funds rate or~~at the LIBOR rate at(with a LIBOR floor of 1.0%) plus an applicable margin rate of 7.50% through September 16, 2021. Thereafter, the applicable margin rate will be 7.50% for so long as the Company’s 12-month trailing consolidated EBITDA (as defined in the Credit Facility, as amended) measured as of the end of each month is less than $18.0 million, or 7.00% when the 12-month trailing consolidated EBITDA is equal to ~~the following: (a) the Federal Funds rate plus a carrying percentage based on the Company’s excess availability, of either 3.75%~~ or ~~4.00% until May 24, 2021 or 3.25% or 3.50% after May 24, 2021 or (b)~~greater than $18.0 million. Accordingly, the LIBOR rate (the Company being able to select interest periods of 1 week, 1 month, 2 months, 3 months or 6 months) plus a varying percentage based on the Company’s excess availability of either 4.75% or 5.00% until May 24, 2021, or 4.25% or 4.50% after May 24, 2021. At August 1, 2020, the outstanding balance of $15.0 million was in a 6-month LIBOR-based contract with an interest rate ~~of 6.00%~~at May 1, 2021 was 8.5%. The LIBOR-based contract expired on November 15, 2020. When a LIBOR-based contract expires, the borrowings revert back to prime-based borrowings unless the Company enters into a new LIBOR-based borrowing arrangement.

The Company paid interest and fees totaling ~~$1.6~~$1.1 million and ~~$1.8~~$0.7 million for the ~~six~~three months ended ~~August~~May 1, ~~2020~~2021 and ~~August 3, 2019,~~May 2, 2020, respectively.

The Company leases all of its store locations and its corporate headquarters, which also includes its distribution center, under operating leases. The store leases typically have initial terms of 5 years to 10 years, with options that usually permit renewal for additional five-year periods. The initial term of the lease for the corporate headquarter was for 20 years, with the opportunity to extend for 6 additional successive periods of five years, beginning in fiscal 2026. The Company also leases certain equipment and other assets under operating leases, typically with initial terms of 3 to 5 years. The Company is generally obligated for the cost of property taxes, insurance and common area maintenance fees relating to its leases, which are considered variable lease costs and are expensed as incurred.

~~Due to the COVID-19 pandemic and all stores having to close temporarily, the Company held rent payments for the period of April through June 2020. During the second quarter~~ of fiscal 2020, the Company received concessions with the majority of its landlords in the form of rent deferrals, abatements and, to a lesser extent, lease extensions. For the remainder of the leases, the outstanding lease payments were paid and the leases remain in good standing. ASC 842 requires the assessment of any lease modification to determine if the modification should be treated as a separate lease and if not, modification accounting would be applied. Lease modification accounting requires the recalculation of the ROU asset, lease liability and lease expense over the respective lease term. In April 2020, the FASB issued guidance allowing entities to make a policy election to account for lease concessions related to the COVID-19 pandemic as though enforceable rights and obligations for those concessions existed. The election applies to any lessor-provided lease concession related to the impact of the COVID-19 pandemic, provided the concession does not result in a substantial increase in the rights of the lessor or in the obligations of the lessee. The Company has opted not to elect this practical expedient and instead account for these rent concessions as lease modifications ~~during the second quarter of fiscal 2020~~ in accordance with ASC 842. As of ~~August~~May 1, ~~2020, no material amounts related to leases remain in Accounts Payable, and~~2021, the Company’s operating leases liabilities represent the present value of the remaining future minimum lease payments updated based on ~~second quarter~~ concessions and lease modifications.

The following table is a summary of the Company’s components of net lease cost for the ~~second~~first quarter ended May 1, 2021 and ~~first six months ended August 1, 2020 and August 3, 2019:~~May 2, 2020:

	For the three months ended				For the six months ended
									For the three months ended
	August 1, 2020		August 3, 2019		August 1, 2020		August 3, 2019		May 1, 2021		May 2, 2020
(in thousands)
Operating lease cost	$	11,300	$	13,215	$	23,932	$	26,468	$	11,126	$	12,640
Variable lease costs⁽¹⁾		3,266		3,954		7,069		7,999		3,774		3,800
Total lease costs	$	14,566	$	17,169	$	31,001	$	34,467	$	14,900	$	16,440

Supplemental cash flow and balance sheet information related to leases for the ~~first six~~three months ended ~~August~~May 1, ~~2020~~2021 and ~~August 3, 2019~~May 2, 2020 is as follows:


(dollars in thousands)	For the six months ended					For the three months ended
Cash paid for amounts included in the measurement of lease liabilities:	August 1, 2020			August 3, 2019		May 1, 2021		May 2, 2020
Operating cash flows for operating leases⁽¹⁾	$	18,527		$	29,221	$	17,112	$	9,805
Non-cash operating activities:
Right-of-use assets obtained in exchange for operating lease liabilities	$	559		$	3,053	$	2,137	$	559
Net decrease in right-of-use assets due to lease modifications associated with rent concessions during the second quarter of fiscal 2020	$	(578	)	-

Weighted average remaining lease term	5.0 yrs.			5.6 yrs.		4.4 yrs.		5.2 yrs.
Weighted average discount rate	6.48%			7.10%		6.72%		7.08%

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the Consolidated Balance Sheet as of ~~August~~May 1, ~~2020:~~2021:

(in thousands)
2020 (remaining)	$	27,978
2021		58,166
2021 (remaining)			$	35,609
2022		49,959		48,389
2023		41,321		40,987
2024		31,031		31,691
2025				23,102
Thereafter		38,509		15,787
Total minimum lease payments	$	246,964	$	195,565
Less: amount of lease payments representing interest		36,028		27,378
Present value of future minimum lease payments	$	210,936	$	168,187
Less: current obligations under leases		45,626		38,331
Long-term lease obligations	$	165,310	$	129,856

The following is a summary of the Company’s Long-Term Incentive Plan (“LTIP”). All equity awards granted under long-term incentive plans are issued from the Company’s stockholder-approved 2016 Incentive Compensation Plan. See Note 6, Stock-Based Compensation.

At ~~August~~May 1, ~~2020,~~2021, the Company has three active LTIPs: ~~2018-2020 LTIP,~~ 2019-2021 LTIP, 2020-2022 LTIP and ~~2020-2022~~the 2021-2023 LTIP. Each participant in the plan participates based on that participant’s “Target Cash Value” which is defined as the participant’s annual base salary (on the participant’s effective date) multiplied by his or her LTIP percentage. Under each LTIP, 50% of each participant’s Target Cash Value is subject to time-based vesting and 50% is subject to performance-based vesting. ~~All~~The time-based awards under ~~the 2018-2020 LTIP were granted in restricted stock units (RSUs) and the time-based awards for~~ the 2019-2021 LTIP were granted in a combination of 50% RSUs and 50% cash. For the 2020-2022 LTIP, the time-based awards were granted in a combination of 50% stock options and 50% cash, and for the 2021-2023 LTIP the time-based awards were granted in a combination of 25% stock options and 75% cash.

Performance targets for the ~~2018-2020 LTIP,~~ 2019-2021 LTIP, 2020-2022 LTIP and ~~2020-2022~~2021-2023 LTIP were established and approved by the Compensation Committee on ~~October 24, 2018,~~ August 7, 2019, ~~and~~ June 11, 2020, and March 8, 2021, respectively. The performance period for each LTIP is three years. Awards for any achievement of performance targets will not be granted until the performance targets are achieved and then will be subject to additional vesting through August 31, ~~2021,~~2022, August 31, ~~2022~~2023 and August, 31, ~~2023,~~2024, respectively. The time-based awards under the ~~2018-2020 LTIP,~~ 2019-2021 LTIP, 2020-2022 LTIP and ~~2020-2022~~2021-2023 LTIP vest in four equal installments through April 1, ~~2022,~~2023, April 1, ~~2023~~2024 and April 1, ~~2024,~~2025, respectively. Assuming that the Company achieves the performance targets at target levels and all time-based awards vest, the compensation expense associated with the ~~2018-2020 LTIP,~~ 2019-2021 LTIP, 2020-2022 LTIP and ~~2020-2022~~2021-2023 LTIP is estimated to be approximately ~~$3.7~~$3.8 million, $3.8 million and ~~$3.8~~$4.0 million, respectively. Approximately half of the compensation expense for each LTIP relates to the time-based awards, which are being expensed straight-line over ~~41 months,~~ 44 months, 46 months and 4649 months, respectively.

~~Through~~At May 1, 2021, the ~~end of~~performance targets under the ~~second quarter of fiscal 2020, the~~2019-2021 LTIP was not deemed probable and, therefore, 0 accrual related to performance awards has been recorded. The Company has accrued ~~$0.2~~$0.3 million ~~for performance awards~~ under the ~~2018-2020~~2020-2022 LTIP and $0.1 million ~~for performance awards~~ under the ~~2020-2022 LTIP. There was 0 accrual at August 1, 2020~~2021-2023 LTIP for the performance ~~awards under the 2019-2021 LTIP.~~awards.

The Company has one active stock-based compensation plan: the 2016 Incentive Compensation Plan (the “2016 Plan”). The initial share reserve under the 2016 Plan was 5,725,538 shares of common stock. A grant of a stock option award or stock appreciation right will reduce the outstanding reserve on a one-for-one basis, meaning 1 share for every share granted. A grant of a full-value award, including, but not limited to, restricted stock, restricted stock units and deferred stock, will reduce the outstanding reserve by a fixed ratio of 1.9 shares for every share granted. ~~On August 8, 2019, the~~The Company’s shareholders approved ~~an amendment~~amendments to increase the share reserve by 2,800,000 shares on August 8, 2019 and by an additional ~~2,800,000 shares.~~1,740,000 shares on August 12, 2020. At ~~August~~May 1, ~~2020,~~2021, the Company had ~~842,466~~22,901 shares available under the 2016 Plan. ~~Subsequent to the end of the second quarter of fiscal 2020, the Company’s shareholders approved an amendment to increase the share reserve by an additional 1,740,000 shares.~~

In accordance with the terms of the 2016 Plan, any shares outstanding under the previous 2006 Incentive Compensation Plan (the “2006 Plan”) at August 4, 2016 that subsequently terminate, expire or are cancelled for any reason without having been exercised or paid are added back and become available for issuance under the 2016 Plan, with stock options being added back on a one-for-one

basis and full-value awards being added back on a 1 to 1.9 basis. At ~~August~~May 1, ~~2020, 464,016~~2021, 412,826 stock options remained outstanding under the 2006 Plan.

The 2016 Plan is administered by the Compensation Committee. The Compensation Committee is authorized to make all determinations with respect to amounts and conditions covering awards. Options are not granted at a price less than fair value on the date of the grant. Except with respect to 5% of the shares available for awards under the 2016 Plan, no award will become exercisable unless such award has been outstanding for a minimum period of one year from its date of grant.

The following tables summarize the share activity and stock option activity for the ~~Company’s 2006 Plan, 2016 Plan and inducement awards, on a combined basis, for the~~ first ~~six~~three months of fiscal ~~2020:~~2021:

	RSUs ⁽¹⁾			Deferred shares ⁽²⁾			Fully-vested shares ⁽³⁾			Performance Share Units ⁽⁴⁾		Total number of shares			Weighted-average grant-date fair value		RSUs ⁽¹⁾			Deferred shares ⁽²⁾		Performance Share Units ⁽³⁾		Total number of shares			Weighted-average grant-date fair value
Shares
Outstanding non-vested shares at beginning of year		1,420,803			295,604			—			720,000		2,436,407		$	1.95		815,292			435,568		720,000		1,970,860		$	1.69
Shares granted		—			45,714			69,440			—		115,154		$	1.08		8,054			—		—		8,054		$	0.66
Shares vested/issued		(436,839	)		(13,936	)		(69,440	)		—		(520,215	)	$	2.20		(308,055	)		—		—		(308,055	)	$	2.22
Shares canceled		(17,443	)		—			—			—		(17,443	)	$	2.11		—			—		—		—			—
Outstanding non-vested shares at end of quarter		966,521			327,382			—			720,000		2,013,903		$	1.84		515,291			435,568		720,000		1,670,859		$	1.58

	Number of shares			Weighted-average exercise price per option		Weighted-average remaining contractual term		Aggregate intrinsic value (in 000's)		Number of shares			Weighted-average exercise price per option		Weighted-average remaining contractual term		Aggregate intrinsic value
Stock Options
Outstanding options at beginning of year		754,833		$	4.84	2.6 years		$	—		3,647,581		$	1.09	8.5 years		$	810,596
Options granted ⁽¹⁾		3,185,542		$	0.55		—		2		1,518,154		$	0.71		—		—
Options expired and canceled		(264,146	)	$	4.85		—		—		(22,542	)	$	4.19		—		—
Options exercised		—			—		—		—		—			—		—		—
Outstanding options at end of quarter		3,676,229		$	1.12	9.0 years		$	—		5,143,193		$	0.96	8.8 years		$	4,434,327
Options exercisable at end of quarter		490,687		$	4.83	3.1 years		$	—		439,497		$	4.87	2.6 years		$	—

For the first ~~six~~three months of fiscal ~~2020,~~2021, the Company granted stock options to purchase an aggregate of ~~3,185,542~~1,518,154 shares of common stock and 8,054 restricted stock units. For the first three months of fiscal 2020, the Company granted 45,714 shares of deferred stock. For the first six months of fiscal 2019, the Company granted 720,000 PSUs, 390,299 RSUs and 43,455 shares of deferred stock. The Company’s non-employee directors voted to suspend their compensation for the second quarter of fiscal 2020. Subsequently, such compensation resumed in the third quarter of fiscal 2020.

The Company granted ~~23,148~~136,482 shares of common stock, with a fair value of approximately ~~$24,999,~~$109,186, to certain of its non-employee directors as compensation in lieu of cash in the first ~~six~~three months of fiscal ~~2020. As mentioned above, the non-employee directors voted to suspend their second quarter compensation.~~ 2021.

The Company recognized total stock-based compensation expense of ~~$0.8~~$0.3 million and ~~$0.9~~$0.5 million for the first ~~six~~three months of fiscal ~~2020~~2021 and fiscal ~~2019,~~2020, respectively. The total compensation cost related to time-vested stock options, RSU and PSU awards not yet recognized as of ~~August~~May 1, ~~2020~~2021 was approximately ~~$2.7~~$2.5 million, net of estimated forfeitures, which will be expensed over a weighted average remaining life of 3230 months.

The following table provides a reconciliation of the number of shares outstanding for basic and diluted earnings per share:

	For the three months ended				For the six months ended				For the three months ended
	August 1, 2020		August 3, 2019		August 1, 2020		August 3, 2019		May 1, 2021		May 2, 2020
(in thousands)
Common stock outstanding:
Basic weighted average common shares outstanding		51,078		49,867		50,918		49,734		62,153		50,758
Common stock equivalents – stock options and restricted stock ⁽¹⁾		—		308		—		—
Common stock equivalents – stock options, restricted stock units and deferred stock ⁽¹⁾										847		—
Diluted weighted average common shares outstanding		51,078		50,175		50,918		49,734		63,000		50,758

The following potential common stock equivalents were excluded from the computation of diluted earnings per share in each period, because the exercise price of such options was greater than the average market price per share of common stock for the respective periods or because of the unearned compensation associated with ~~either~~ stock options, restricted stock units, ~~restricted~~ or deferred stock had an anti-dilutive effect.

	For the three months ended				For the six months ended				For the three months ended
	August 1, 2020		August 3, 2019		August 1, 2020		August 3, 2019		May 1, 2021		May 2, 2020
(in thousands, except exercise prices)
Stock options		3,676		865		3,676		850		1,933		538
Restricted stock units		963		1,056		963		1,040		506		963
Restricted and deferred stock		160		85		160		63
Deferred stock										102		160
Range of exercise prices of such options	$0.53 - $7.02		$1.85 - $7.02		$0.53 - $7.02		$2.00 - $7.02		$0.69 - $5.50		$1.85 - $7.02

The above options, which were outstanding at ~~August~~May 1, ~~2020,~~2021, expire from January 31, ~~2021~~2023 to ~~June 11, 2030.~~March 9, 2031.

Excluded from the computation of basic and diluted earnings per share for both periods were 720,000 shares of unvested performance stock units. These performance-based awards will be included in the computation of basic and diluted earnings per share if, and when, the respective performance targets are achieved. In addition, ~~327,382~~435,568 shares and ~~242,040~~335,073 shares of deferred stock at ~~August~~May 1, ~~2020~~2021 and ~~August 3, 2019,~~May 2, 2020, respectively, were excluded from basic earnings per share. Outstanding shares of deferred stock are not considered issued and outstanding until the vesting date of the deferral period.

On February 5, 2021, the Company sold, pursuant to a stock purchase agreement and through a registered direct offering, an aggregate of 11,111,111 shares of its common stock, for a gross purchase price of $5.0 million, before payment of offering costs of $0.6 million. The Company intends to use the net proceeds from the offering for working capital and other general corporate purposes.

During the first quarter of fiscal 2021 and fiscal 2020, the Company recorded income tax expense of $28,000 and $20,000, respectively, related primarily to state margin tax. The Company’s effective tax rate will generally differ from the U.S. federal statutory rate of 21% primarily due to the change in full valuation allowance recorded against its deferred tax assets, permanent items, and state taxes.

Since the end of fiscal 2014, the Company has maintained a full valuation allowance against its deferred tax assets. While the Company has projected it will return to profitability, generate taxable income and ultimately emerge from a three-year cumulative loss, the Company believes that a full valuation allowance remains appropriate at this time, based on the Company’s forecast for fiscal ~~2020.~~2021. Realization of the Company’s deferred tax assets is dependent on generating sufficient taxable income in the near term. ~~At August 1,~~

For federal income tax purposes, at the end of fiscal 2020, the Company had ~~total deferred tax assets of $107.4 million, total deferred tax liabilities of $47.4 million and a valuation allowance of $60.0 million.~~

~~As of August 1, 2020, for federal income tax purposes, the Company has~~ net operating loss carryforwards of approximately $158.2 million, which will expire from fiscal 2022 through fiscal ~~2036~~2037, and net operating loss carryforwards of ~~$34.0~~$43.1 million, that are not subject to ~~expiration.~~expiration, available in the U.S. to reduce future taxable income. For state ~~income tax~~ purposes, at the end of fiscal 2020, the Company ~~has $112.2~~had $111.3 million of net operating losses that are available to offset future taxable income, the majority of which will expire from fiscal ~~2020~~2021 through fiscal ~~2040. Additionally, the Company has $3.9 million of net operating loss carryforwards related to the Company’s operations in Canada, which will expire from fiscal 2025 through fiscal 2040.~~

The Company’s financial statements reflect the expected future tax consequences of uncertain tax positions that the Company has taken or expects to take on a tax return, based solely on the technical merits of the tax position. The liability for unrecognized tax benefits at August 1, 2020 was approximately $2.0 million and was associated with a prior tax position related to exiting the Company’s direct business in Europe during fiscal 2013. The amount of unrecognized tax benefits has been presented as a reduction in the reported amounts of the Company’s federal and state net operating losses carryforwards. No penalties or interest have been accrued on this liability because the carryforwards have not yet been utilized. The reversal of this liability would result in a tax benefit being recognized in the period in which the Company determines the liability is no longer necessary.

In March 2020, the Coronavirus Aid, Relief and Economic Security Act, ("CARES Act") was signed into law. This law includes several taxpayer favorable provisions which may impact the Company including relaxed interest expense limitations, a carryback of net operating losses, permitted accelerated depreciation on certain store build out costs and allowance for the deferral of employer FICA taxes. The CARES Act also included an Employee Retention Credit, which provided the Company with a $1.2 million refundable tax credit in ~~the second~~ ~~quarter of fiscal 2020. The refundable tax credit allowed eligible employers to receive a 50% tax credit for each employee up to $10,000 in wagesand other eligible expenses. This credit only impacts payroll taxes, which are recorded in pre-tax income and has no impact on the income tax provision. In addition~~, it provided for the accelerated payment of any refundable alternative minimum tax credit (“AMT”). Accordingly, during the second quarter of fiscal 2020, the Company received $1.1 million for its refundable AMT receivable.

The discrete tax rate method was used for calculating tax expense for the second quarter and first six months of fiscal 2020 and fiscal 2019. The net tax provision for the second quarter and first six months of fiscal 2020, primarily related to certain states’ margin tax. The Company’s net tax benefit for the second quarter and first six months of fiscal 2019 was the result of the deferred tax impact of $30,000 and $81,000, respectively, in other comprehensive income (loss), which resulted in a corresponding decrease in valuation allowance. This income tax benefit was partially offset by tax expense, primarily for certain states’ margin tax.

~~Results for the first six months of fiscal 2019, included $0.7 million related to CEO search costs, Acting CEO consulting costs, housing allowance and legal fees.~~

~~The Company’s common stock is publicly traded and listed on The Nasdaq Global Select Market (“Nasdaq”) under the symbol “DXLG.”~~ ~~Nasdaq has continued listing standards that the Company must maintain to avoid delisting, including, among others, a minimum bid price requirement of $1.00 per share.~~ On April 9, 2020, the Company received a letter from the Listing Qualifications staff of Nasdaq notifying the Company that, based upon the closing bid price of its common stock for the last 30 consecutive trading days, the Company was not in compliance with Nasdaq Listing Rule 5450(a)(1), as the minimum bid price for the Company’s common stock was less than $1.00 per share for the previous 30 consecutive trading days. At that time, the Company was granted a 180 calendar-day grace period to regain compliance with the minimum bid price requirement. On April 17, 2020, the Company received a follow-up letter from the Listing Qualifications staff notifying the Company that Nasdaq had determined to toll all

~~compliance periods through June 30, 2020. Accordingly, the Company’s 180 calendar-day grace period to regain compliance with the minimum bid price requirement was extended to December 21, 2020.~~

The Notice does not result in the immediate delisting of the Company’s common stock from the Nasdaq Global Select Market. The Company intends to monitor the closing bid price of the Company’s common stock to allow a reasonable period for the price to rebound from its recent decline but will continue to consider its available options to regain compliance. Subsequent to the end of the second quarter of fiscal 2020, on August 12, 2020, the Company received approval from its shareholders to effect a reverse stock split of the Company’s issued and outstanding common stock at a ratio of not less than ~~1-for-2~~ ~~and not more than~~ ~~1-for-5~~, such ratio, and the timing and implementation of such reverse stock split, to be determined in the sole discretion of the Company’s Board of Directors. There can be no assurance that the Company will be able to regain compliance with the minimum bid price requirement or maintain compliance with the other listing requirements.2041.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Certain statements contained in this Quarterly Report on Form 10-Q constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “estimate,” “intend,” “plan,” “continue,” “believe,” “expect” or “anticipate” or the negatives thereof, variations thereon or similar terminology. The forward-looking statements contained in this Quarterly Report are generally located in the material set forth under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” but may be found in other locations as well, and include statements regarding ~~our ability to withstand~~ the continuing impact of the COVID-19 pandemic on our business and financial results, ~~in fiscal 2020 and to manage through the pandemic,~~expected savings from our efforts to ~~restructure~~right size our lease structure, expected sales trends, expected marketing spend, potential freight cost and reduce costs, expected inventory levels in the second half of 2020, the impact of direct sales on results in fiscal 2020, the ability to keep some or all of our reopened stores open and operating during more normalized hours,raw materials cost increases, and our ~~expected~~ liquidity expectations for the next 12 months. These forward-looking statements generally relate to plans and objectives for future operations and are based upon management’s reasonable estimates of future results or trends. The forward-looking statements in this Quarterly Report should not be regarded as a representation by us or any other person that our objectives or plans will be achieved. The following discussion of our financial condition and results of operations should be read in conjunction with the unaudited Consolidated Financial Statements and notes to those statements included elsewhere in this Quarterly Report and our audited Consolidated Financial Statements for the year ended ~~February 1, 2020,~~January 30, 2021, included in our Annual Report on Form 10-K for the year ended ~~February 1, 2020,~~January 30, 2021, as filed with the Securities and Exchange Commission on March 19, ~~2020~~2021 (our “Fiscal ~~2019~~2020 Annual Report”).

Numerous factors could cause our actual results to differ materially from such forward-looking statements. We encourage readers to refer to our “Risk Factors” found ~~in Part II, Item 1A of~~ ~~this Quarterly Report, which supplements our discussion of “Risk Factors” found~~ in Part I, Item 1A of our Fiscal ~~2019~~2020 Annual Report. This discussion ~~set~~sets forth certain risks and uncertainties that may have an impact on future results and direction of our Company, including, without limitation, risks relating to the duration and continuing impact of the COVID-19 pandemic and its impact on the Company’s results of operations, the execution of our corporate strategy, and our ability to grow our wholesale segment, predict customer tastes and fashion trends, forecast sales growth trends, ~~maintain and build our brand awareness~~grow market share and compete successfully in our market.

All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the foregoing. These forward-looking statements speak only as of the date of the document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances in which the forward-looking statement is based.

Destination XL Group, Inc., together with our consolidated subsidiaries (the “Company”), is the largest specialty retailer of big and tall men’s clothing with retail, wholesale and direct operations in the United States and Toronto, Canada. We operate under the trade names of Destination XL^®, DXL^®, DXL Outlets, Casual Male XL^®and Casual Male XL Outlets. At ~~August~~May 1, ~~2020,~~2021, we operated ~~228~~222 Destination XL stores, 17 DXL outlet stores, 4942 Casual Male XL retail stores, 2320 Casual Male XL outlet ~~stores. Our~~stores and a digital business, including an e-commerce site at dxl.com ~~supports our stores, brands~~ and ~~product extensions.~~ a mobile site m.destinationXL.com and mobile app.

Unless the context indicates otherwise, all references to “we,” “our,” “us” and “the Company” refer to Destination XL Group, Inc. and our consolidated subsidiaries. We refer to our fiscal years, which end on January 29, 2022, January 30, 2021 and February 1, 2020 as “fiscal 2021,” “fiscal 2020” and “fiscal 2019,” respectively. ~~Both~~All fiscal ~~2020 and fiscal 2019~~years are 52-week periods.

We have three principal operating segments: our stores, direct business and our wholesale business. We consider our stores and direct business segments to be similar in terms of economic characteristics, production processes and operations, and have therefore aggregated them into one reportable segment, retail segment, consistent with our omni-channel business approach. Due to the immateriality of the wholesale segment’s revenues, profits and assets, its operating results have been aggregated with the retail segment for both periods.

Our customer’s shopping experience continues to evolve across multiple channels and we are continually adapting to meet ~~our guests’~~the guest’s needs. The majority of our stores have the capability of fulfilling online orders if merchandise is not available in the warehouse. As a result, we continue to see more transactions that begin online but are ultimately completed at the store level. Similarly, if a customer visits a store and the item is out of stock, the associate can order the item through our website. A customer also has the ability to order online and pick-up in a store and, more recently due to the COVID-19 pandemic, pick-up at curbside. ~~As we continue to invest in building our e-commerce platform, bringing a heightened digital focus to our Company, additional disclosure on our e-commerce~~

~~growth as it relates to our current initiatives is important.~~ We define store sales as sales that originate and are fulfilled directly at the store level. E-commerce sales, which we also refer to as direct sales, are defined as sales that originate online, whether through our website, at the store level or through a third-party marketplace.

Stores that have been open for 13 months are included in comparable sales. Stores that have been remodeled or re-located during the period are also included in our determination of comparable stores sales. Stores that have been expanded by more than 25% are considered non-comparable for the first 13 months. If a store becomes a clearance center, it is also removed from the calculation of comparable sales. The method of calculating comparable sales varies across the retail industry and, as a result, our calculation of comparable sales is not necessarily comparable to similarly titled measures reported by other retailers.

~~Due~~The Company has not carved-out prior year sales for periods where the stores were temporarily closed in fiscal 2020 due to the ~~fact that our~~pandemic. However, because the Company’s two stores in Canada were closed ~~temporarily during~~for much of the ~~second~~first quarter ~~and first six months~~ of fiscal ~~2020 and continue to operate with reduced hours due to~~ 2021, we removed them from the ~~COVID-19 pandemic, we have not included a discussion~~current calculation of comparable ~~sales for the second quarter and first six months of fiscal 2020 as we do not believe it provides a meaningful metric of our performance during the period.~~sales.

On March 11, 2020, the World Health Organization declared COVID-19 as a global pandemic. The COVID-19 pandemic has negatively affected the global economy, disrupted global supply chains, and created significant disruption of the financial and retail markets, including a disruption in consumer demand for men’s clothing and accessories. While the pandemic ~~has~~ had ~~and will likely continue to have, a significant~~an adverse effect on our business, financial condition and ~~results~~result of operations in fiscal 2020, we ~~moved early~~are hopeful that the worst is behind us and ~~decisively over~~we are on the ~~past several months~~road to ~~preserve our financial flexibility and position ourselves to withstand~~recovery. Substantial uncertainty remains regarding the ~~short-term~~duration of the pandemic, the potential impact of new variants, and the long-term effect of the pandemic on the global economy and its supply chain, unemployment, and overall consumer demand and spending.

The following review of our first quarter results for fiscal 2021 includes a discussion against the first quarter of fiscal 2019 in addition to the first quarter of fiscal 2020. Due to the COVID-19 pandemic and its impact on our results during the consumer. We continue to communicate consistently and transparently with our employees, suppliers, landlords and banks and believe this direct and active communication has meaningfully enhanced the level of partnership and trust to support the plans we have in place to manage through the pandemic.

~~We closed all of our retail stores on March 17, 2020 and, beginning at the end of April 2020 and continuing into the second~~first quarter of fiscal 2020, we ~~started~~believe that the additional discussion against the first quarter of fiscal 2019 is a more meaningful comparison with respect to ~~gradually reopen stores. As of~~the progress the Company made through the end of ~~June, all~~the first quarter of fiscal 2021.

Our financial results for the first quarter exceeded our expectations and we are very pleased by the sales trends we are seeing. We expected that sales would return gradually as vaccine distributions became more widely available and warm weather arrived. We saw a sharp acceleration mid-quarter, resulting in a first quarter comparable sales growth of 3.7% as compared to the first quarter of fiscal 2019, with our direct business increasing 40.7% and our stores ~~had been reopened although all operating at reduced hours. Since the reopening, some~~down (6.7%). Regionally, our strongest performance was from our stores ~~have had to close for periods of time. Store sales were gradually improving~~located in the ~~early weeks~~southeast, south central and Midwest, as compared to our east and west coast stores, which were slower to rebound.

During fiscal 2020, we took many steps to reduce our cost structure and improve our operating leverage to position us for a greater recovery as we emerged from the pandemic. Those steps included the restructuring of our lease portfolio. Working with our landlord community, we have restructured 115 store leases, since the ~~second quarter, but~~beginning of 2020, which we ~~started to see some dips as certain key areas~~expect will result in savings of over $16.1 million over the ~~country began experiencing a resurgence~~respective lease terms, including $6.0 million of expected savings in fiscal 2021. We also took the ~~virus.~~difficult step of reducing our corporate workforce by approximately 29% and our field organization by approximately 54%. We ~~expect that this uncertainty will continue~~also eliminated professional and service contracts where possible. We are seeing the results of these efforts in our SG&A costs for the ~~remainder~~first quarter of fiscal 2021, where we reduced SG&A costs by $7.5 million, as compared to the first quarter of fiscal 2019.

Another key initiative we pursued in fiscal 2020 was to restructure our overall sales promotional strategy to improve our gross margins. Over the past six to nine months, we have been shifting from the broad-based, deep discounts that we took in the first few months of fiscal 2020 ~~and we may have to close and reopen certain store locations to protect our associates and customers,~~ in response to ~~state~~the COVID-19 pandemic to more full-priced messaging, with a focus on differentiated product, and ~~local guidelines. Accelerating~~unique selling propositions. Our promotions in the ~~trend~~first quarter of fiscal 2021 were fewer, more targeted and overall more

efficient than in prior years. This strategy drove significant savings in markdown dollars and an improvement in gross margin rate and we expect to maintain this promotional posture during fiscal 2021.

As a result of our sales performance and the steps taken to improve operating leverage, net income for the first quarter was $0.14 per diluted share.

From a liquidity perspective, during the first quarter of fiscal 2021 we completed two transactions that further strengthened our liquidity: (i) we ~~saw~~raised $4.4 million, net of offering costs, in connection with a direct offering of 11.1 million shares of our common stock, and (ii) we amended our credit facility with Bank of America to allow us the ability to refinance our existing $15.0 million FILO loan by entering into a new $17.5 million FILO loan with higher advance rates and additional borrowing capacity of approximately $5.0 to $10.0 million. At May 1, 2021, our total debt, net of cash, was $44.3 million, as compared to $68.2 million at May 2, 2020 and $72.3 million at May 4, 2019. Our borrowing availability at the end of the quarter was $51.1 million as compared to $16.8 million at May 2, 2020 and $32.2 million at May 4, 2019.

Total sales for the first quarter of fiscal 2021 were $111.5 million, as compared to $57.2 million in the first quarter of fiscal 2020 ~~sales from our direct business increase by $7.6~~and $113.0 million and accounted for approximately 46.1% of our retail sales compared to 21.1% for last year’s second quarter and it is playing a vital role as we are seeing our customers’ shopping preferences shift to online. Given the increased demand, we have been very fortunate that our distribution center has been able to operate without any business disruption. As we previously announced, we began selling protective masks through our wholesale business in the ~~second~~first quarter of fiscal ~~2020. The sale of protective masks~~2019. At May 1, 2021, we had 301 stores as compared to ~~wholesale accounts accounted for $4.1 million of our $5.0 million in wholesale sales.~~

We believe that managing and preserving our liquidity is our top priority to navigate through the pandemic. We have been proactive and decisive in managing our cash obligations. We proactively worked with our leasing partners to mitigate cash burn from short-term lease obligations while our321 stores ~~were closed.~~ ~~Over the past two quarters, we have worked with our vendors on extended payment terms, including entering into short-term promissory terms with vendors.~~ During the second quarter, we negotiated short term rent relief agreements, primarily through rent abatements and rent deferments, with the majority of our landlords. As a result of lease modifications, the Company has reduced rent payments by approximately $10.0 million for fiscal 2020. As of the end of the second quarter, all store leases were current and in good standing.

We have restructured our business, where possible, to reduce operating costs to align with expected sales levels. All of our store associates and approximately 60% of our corporate office had been on furlough since March 2020. As we reopened stores in the second quarter, we gradually brought many of these associates back, doing our best to extend benefits to others remaining on furlough. However, given our current sales expectations in light of the continuing impact of the pandemic on consumer spending, there were approximately 34 corporate associates inat May 2, 2020 and ~~430 store associates in July 2020 that were terminated and not brought back from furlough. In addition~~328 stores at May 4, 2019.

As compared to the furlough, our corporate management team (director level and above) also took a temporary salary reduction, ranging from 10% to 20%, from April 5, 2020 until the end of the second quarter and our non-employee members of board of directors suspended their compensation for the second quarter as well. We also eliminated much of our advertising expense during the second quarter, focusing our marketing spend on digital advertising.

In the first quarter of fiscal 2020, comparable sales for the quarter were up 99.0%, with sales from our stores up 138.7% and the direct business up 46.6%.

As compared to the first quarter of fiscal 2019, comparable sales for the quarter were up 3.7% driven by our direct business, which was up 40.7%, partially offset by our stores, which were down (6.7)%. The increase in our direct business was principally due to our DXL.com e-commerce site, which had a sales increase of 55.8% as compared to the first quarter of fiscal 2019.

We started to see significant improvements beginning in mid-March due in part to stimulus checks, the vaccine rollout, the loosening of COVID-19-related restrictions in some parts of the country and the arrival of warm spring weather. While store traffic improved over the course of the quarter, it remained down as compared to fiscal 2019 levels, but our dollars per transaction and conversion rates were both higher than in fiscal 2019. Regionally, we ~~drew $30.0~~saw the strongest sales improvement in the southeast, south central and mid-west regions, whereas stores in the northeast and west coast, where tighter restrictions were still in place, trailed approximately 800 basis points behind the rest of the chain.

Sales from our wholesale business increased to $3.1 million ~~under our revolving credit facility~~for the first quarter, as compared to ~~preserve our access to cash and we also amended our credit facility to improve our excess availability under our revolver. At August 1, 2020, we had $20.4~~$2.0 million in ~~cash, total debt outstanding, net of debt issuance costs, of $81.4 million and remaining availability under our credit facility of $12.4 million.~~

~~Total debt, net of cash, for~~ the ~~second~~first quarter of fiscal 2020 ~~was $61.0 million, as compared to $58.7~~and $2.4 million in the ~~second~~first quarter of ~~fiscal~~ 2019. At August 1, 2020, our accounts payable balance of $18.5 million, which included $2.0 million of promissory notes payable through April 2021, compared to an accounts payable balance of $36.9 million at August 3, 2019. As we previously mentioned, we cancelled approximately $148 million, at retail, in merchandise receipts for fiscal 2020, and have been focused on keeping our current inventory healthy. At August 1, 2020, our inventory was at $87.4 million, down from $110.4 million at the end of the second quarter last year. While we expect our inventory to increase in the third quarter as we prepare for the fall season, this lower level of inventory negatively impacts our availability under the credit facility. Our access to liquidity will remain our primary objective for the balance of fiscal 2020 and we do believe that we have sufficient liquidity to meet our working capital requirements over the next twelve months, ~~given no further significant shutdowns of the economy~~.

As we head into the second half of fiscal 2020, we are cautiously optimistic. Prior to the COVID-19 pandemic, our key objective was to grow our direct business, and with the current pandemic, those initiatives have just been accelerated and we are working to meet the changing shopping behaviors of our customers. We are working towards becoming a “digital first” retailer, because the vast majority of consumers begin their shopping experience, whether it be online or in a store, with their digital phones. With the current disruption in the retail landscape, we also see potential opportunity to attract a new customer base to our business.

The following is a summary of results for the second quarter and the first six months of fiscal 2020 as compared to the prior year, including adjusted EBITDA, which is a non-GAAP measure. Please see “Non-GAAP Financial Measures” below for a reconciliation of net loss to adjusted EBITDA.

Total sales for the second quarter of fiscal 2020 decreased 38.0% to $76.4 million from $123.2 million in the second quarter of fiscal 2019. We were able to open our stores sooner than expected during the second quarter, and by the end of June, all locations had been reopened. However, with the resurgence of the virus in certain key areas of the country, we started to experience a slowdown in sales from stores in those impacted geographies as July progressed. We continued to see a shift to online shopping during the second quarter and expect to see a similar trend through the remainder of fiscal 2020. Sales from direct business were driven by sales from our DXL.com website, which increased 69% over the prior year second quarter. The strong growth in our direct business, is a direct outcome of the digital strategies we have implemented and the customers’ shift in shopping preferences further grow in response to COVID-19. Our wholesale business contributed $5.0 million in sales during the second quarter, as compared to $2.7 million in the prior year, driven primarily by the sale of $4.1 million in protective masks.

Total sales for the first six months of fiscal 2020 decreased 43.4% to $133.7 million from $236.2 million for the first six months of fiscal 2019. This decrease was principally due to the closing of all of our store locations on March 17, 2020 as well as the decrease in consumer spending as a direct result of the COVID-19 pandemic. With increasing unemployment and the continued uncertainty surrounding the pandemic, we expect to continue to market to our customers primarily through digital and direct means, in an effort to drive traffic to both our website and stores.

For the ~~second~~first quarter of fiscal ~~2020,~~2021, our gross margin rate, inclusive of occupancy costs, was ~~28.1%~~45.6% as compared to a gross margin rate of ~~44.3%~~23.1% for ~~the second~~first quarter of fiscal ~~2019. The decrease~~2020 and 43.7% for the first quarter of ~~16.2%~~fiscal 2019.

As compared to fiscal 2020, the 22.5% point improvement was ~~comprised of~~due to a ~~decline of 5.1% from the deleveraging~~

7.0% improvement in merchandise margins, driven by lower promotional markdowns, and a 15.5% improvement in occupancy costs, due to the ~~decreased~~leveraging of sales ~~base,~~ and ~~a decrease of 11.1% in merchandise margins. Although merchandise margins were down in~~savings realized from the ~~second quarter, they were better than expected. We remained highly promotional during~~renegotiated lease reductions. In the first ~~half~~quarter of ~~the second quarter~~last year, we took deep markdowns in order to ~~reduce inventories~~drive traffic and ~~drive~~move spring inventory, due to our ~~on-line business, but began to scale back after Father’s Day. Our gross margin improved significantly post Father’s Day, where we saw a merchandise margin improvement of 1260 basis points~~stores being closed for ~~the month of July, as compared to May. Because~~much of the growth in our direct channel and free shipping promotions, shipping costs for the second quarter increased over the prior year. Because of the growth in our direct channel and free shipping promotions, shipping costs for the second quarter increased over the prior year.

For the first six months of fiscal 2020, our gross margin, inclusive of occupancy costs, was 26.0% as compared to 44.0% for the first six months of fiscal 2019. The decrease of 18.1% was comprised of a decline of 8.6% from the deleveraging in occupancy costs, due to the store closures and overall reduced sales base, and a decrease of 9.5% in merchandise margins. The decrease in merchandise margins reflects the increased promotional posture we took in response to COVID-19 and an increase in our inventory reserves of approximately $0.7 million inquarter. During the first quarter of fiscal ~~2020.~~2021, we had fewer promotions, focusing on promotional offers to targeted audiences. This strategy drove significant savings in markdown dollars and an improvement in gross margin rate. Partially offsetting this improvement is the continuing increase in the cost of freight due to shortage of containers and vessels for overseas product, which we expect will continue for the short-term. We ~~have been highly promotional since~~are also starting to see an increase in the cost of certain raw materials, particularly cotton.

As compared to fiscal 2019, our ~~stores closed to encourage our customers to shop online and to mitigate a build-up of seasonal inventory.~~

~~Although by its nature, margins from our wholesale business are lower than our retail business, the~~ gross margin rate improved by 1.9%, primarily driven by a 2.2% improvement in occupancy costs, partially offset by a decrease in merchandise margins of 0.3%. In fiscal 2020, we began working with our landlords to renegotiate our current lease agreements given the ~~second~~decrease in sales. Occupancy costs for the quarter ~~and~~decreased $2.6 million from the first ~~six months~~quarter of fiscal ~~2020 for wholesale significantly improved over~~2019. The slight decrease in merchandise margins is primarily due to the ~~prior year.~~increase in direct sales penetration and related shipping expenses.

As a percentage of sales, SG&A expenses for the ~~second~~first quarter of fiscal ~~2020~~2021 were ~~33.7%~~33.3% as compared to ~~38.5%~~56.1% for the second quarter of fiscal 2019. On a dollar basis, SG&A decreased by $21.7 million, or 45.7%, for the second quarter of fiscal 2020 as compared to the prior year. For the first six months of fiscal 2020, SG&A expenses were 43.3% as compared to 39.0% for the first six months of fiscal 2019. On a dollar basis, SG&A expense decreased $34.2 million or 37.1%.

~~We took several steps to reduce our operating costs while our stores were closed, including the~~ furlough of both our store associates and certain corporate associates, a reduction in marketing costs, a temporary salary reduction of 10-20% for management and the suspension of non-employee director compensation for the second quarter. As we reopened stores during the second quarter, our operating costs were realigned with the expected sales levels and associates were brought back on a staggered schedule. We continue to assess and rationalize our entire SG&A cost structure. Given the changes to our business as a result of this pandemic, we are restructuring various areas to ensure that we can operate most efficiently. This included the elimination of approximately 34 corporate positions in the first quarter of fiscal 2020 and ~~an additional 430 store associates in~~39.5% for the ~~second quarter. With~~first quarter of fiscal 2019.

As compared to the reduced sales levels and store traffic, our stores are operating at minimal staffing levels and we did not see an opportunity, at this time, to bring back certain positions from furlough, such as tailors and wardrobe consultants.

first quarter of fiscal 2020, on a dollar basis, SG&A expenses ~~are managed~~increased by $5.0 million, or 15.7%. The increase was primarily due to increases in store payroll and payroll-related costs associated with the corresponding increase in sales and increased advertising costs, which were partially offset by cost savings realized as a result of the cost reduction efforts taken in fiscal 2020 throughout all areas of our business.

SG&A expenses decreased by $7.5 million, or (16.7%), as compared to the first quarter of fiscal 2019. The reduction in SG&A costs is the result of the cost reductions efforts that we took in fiscal 2020 to not only preserve liquidity at the time but to lower our operating cost structure long-term.

Management views SG&A expenses through two primary cost centers: Customer Facing Costs and Corporate ~~Supporting~~Support Costs. Customer Facing Costs, which include store payroll, marketing and other store and direct operating costs, represented ~~20.0%~~17.9% of sales ~~for~~in the first ~~six months~~quarter of fiscal ~~2020~~2021 as compared to ~~23.3%~~22.6% of sales ~~for~~in the first ~~six months~~quarter of ~~last year.~~fiscal 2019. Corporate ~~Supporting~~Support Costs, which include the distribution center ~~support,~~ and ~~other~~ corporate overhead costs, represented ~~23.3%~~15.4% of sales ~~for the first six months of fiscal 2020 compared to 15.7% of sales for the first six months of last year.~~

We regularly review assets for impairment indicators at the individual store level, as this represents the lowest level of identifiable cash flows. When indicators of impairment are present, a recoverability analysis is performed. Based on the indicators present in the first quarter of fiscal ~~2020, we completed a~~ ~~recoverability analysis, which included~~2021 compared to 16.9% of sales in the ~~impact~~first quarter of fiscal 2019. For the ~~COVID-19 pandemic on the operations of our stores and we used~~ ~~projections that were based on multiple probability-weighted scenarios, assuming that our stores gradually open throughout the second~~first quarter of fiscal 2020, ~~but that consumer~~Customer Facing Costs were 25.7% of sales and Corporate Support Costs were 30.4% of sales.

During the first quarter of fiscal 2021, we recorded a non-cash gain of $0.8 million on the reduction of our operating lease liability in connection with our decision to close certain retail ~~spending will remain substantially curtailed~~stores, which resulted in a revaluation of the lease liability. Approximately $0.7 million of the non-cash gain related to leases where the right-of-use assets had previously been impaired and was recorded as a reduction of the previously recorded impairment and included in the Impairment of Assets line of the Consolidated Statement of Operations for the three months ended May 1, 2021. The remainder of the non-cash gain of $0.1 million was reflected as a ~~period~~reduction of ~~time. As a result of that analysis, in~~occupancy costs.

In the first quarter of fiscal 2020, we recorded an impairment charge of $16.3 million. The impairment charge included approximately $12.5 million for the write-down of certain right-of-use assets, related to leases where the carrying value exceeded fair value, and $3.8 million for the write-down of property and equipment, related to stores where the carrying value exceeded fair value. ~~No impairment charge was recorded~~ Based on the indicators present in the ~~second~~first quarter of fiscal 2020, ~~however, as discussed above,~~ we completed a ~~there remains uncertainty regarding~~recoverability analysis, which included the impact of the COVID-19 pandemic on the operations of our ~~future results~~stores and we used projections that were based on multiple probability-weighted scenarios, assuming that our stores gradually open throughout the second quarter of ~~operations, which could result in additional impairments.~~fiscal 2020 but that consumer retail spending will remain substantially curtailed for a period of time.

Depreciation and amortization for the ~~second~~first quarter ~~and first six months~~ of fiscal ~~2020~~2021 of ~~$5.3~~$4.5 million ~~and $11.1 million, respectively,~~ decreased from ~~$6.2 million and $12.5~~$5.7 million for the ~~second~~first quarter ~~and first six months~~ of fiscal ~~2019.~~2020. The decrease was due to a lower depreciable cost base, especially from our store assets.

Net interest expense for the ~~second~~first quarter ~~and first six months~~ of fiscal ~~2020~~2021 increased to $1.1 million, ~~and $1.8 million, respectively,~~ as compared to ~~$0.9~~$0.7 million ~~and $1.7 million, respectively,~~ for the ~~second~~first quarter ~~and first six months~~ of fiscal ~~2019~~2020 due to ~~an increase in average borrowings, and~~ an increase in the effective borrowing ~~rates. As a result of our recent amendment to our Credit Facility in~~

~~April 2020, our interest~~ rates ~~under our Credit Facility, which includes our FILO loan, increased by approximately 150 basis points, which will increase our interest costs~~ on a go-forward basis for the remainder of fiscal 2020. In addition, as discussed above, on March 20, 2020, we drew approximately $30.0 million against our revolving credit facility. This action was taken to provide the Company with flexibility to manage its cash flow during this uncertain time. both short-term and long-term borrowings.

We established a full valuation allowance against our deferred tax assets at the end of fiscal ~~2013.~~2014. Based on our forecast for fiscal 2020, we believe that a full valuation allowance ~~continues to remain~~remains appropriate at this time.

~~The discrete tax rate method was used for calculating tax expense. Due to current period losses, our current~~Our tax provision for the first ~~six~~three months of fiscal ~~2020~~2021 and fiscal ~~2019~~2020 was primarily due to ~~current~~ state margin tax, based on gross receipts less certain deductions. The total income tax benefit for the second quarter and first six months of fiscal 2019 also included a deferred tax impact of $30,000 and $81,000, respectively, in other comprehensive income (loss), which resulted in a tax benefit on the Consolidated Statement of Operations related to the corresponding decrease in valuation allowance.

For the ~~second~~first quarter of fiscal ~~2020,~~2021, we had a net ~~loss~~income of ~~$(10.7)~~$8.7 million, or ~~$(0.21)~~$0.14 per diluted share, compared with a net ~~income~~loss of ~~$0.0~~$(41.7) million, or ~~$0.00~~$(0.82) per diluted share, for the ~~second~~first quarter of fiscal ~~2019. For the first six months of fiscal~~ 2020 ~~we had~~and a net loss of ~~$(52.4) million, or $(1.03) per diluted share, as compared to a net loss of $(3.0)~~$(3.1) million, or $(0.06) per diluted ~~share.~~share, for the first quarter of fiscal 2019.

On a non-GAAP basis, before asset impairment costs and CEO transition costs and assuming a normalized tax rate of 26% for all periods, adjusted net income for the first quarter of fiscal 2021 was $0.09 per diluted share, as compared to an adjusted net loss of ($0.37) per diluted share for the ~~second~~first quarter ~~and first six months~~ of fiscal 2020, ~~was ($0.15)~~and an adjusted net loss of $(0.04) per diluted share ~~and ($0.52) per shares, respectively, as compared to adjusted net income (loss) of $0.00 per diluted share and ($0.04) per diluted share, respectively,~~ for the ~~second~~first quarter ~~and first six months~~ of fiscal 2019.

~~Our~~As of May 1, 2021, our inventory ~~on August 1, 2020,~~ decreased approximately ~~$23.0~~$19.9 million to ~~$87.4~~$88.4 million, as compared to ~~$110.4~~$108.3 million at ~~August 3, 2019. We began reacting to~~May 2, 2020. Since the ~~pandemic with respect to~~first quarter of last year, we have been managing our inventory in early March by ultimately cancelling approximately $148 million, at retail, of open orders for fiscal 2020. With respect to the remainder of fiscal 2020, we expect to be responsive to business changes, but expect that our fall inventory buys will be below fiscal 2019 levels. Our objective is to maintain a healthy inventory, which will includeconservatively, narrowing our assortment, while ~~also continuing~~driving meaningfully greater levels of exclusivity with national brands, and at the same time working to ~~manage clearance levels.~~ maintain our supply chain and logistics capabilities.At ~~August~~May 1, ~~2020,~~2021, our clearance inventory decreased by ~~$2.2~~approximately $3.5 million, ~~and represented 11.3%~~representing 10.1% of our total inventory, as compared to ~~10.9%~~11.5% at ~~August 3, 2019.~~ May 2, 2020. We continue to monitor supply chain disruptions across the globe that could delay inventory receipts flow in the second half of the year.

Historically, and consistent with the retail industry, we have experienced seasonal fluctuations as it relates to our operating income and net income. Traditionally, a significant portion of our operating income and net income is generated in the fourth quarter, as a result of the “Holiday” season.

Our primary sources of liquidity are cash generated from operations and availability under our credit facility with Bank of America, N.A., which was most recently amended in ~~April 2020~~March 2021 (“Credit Facility”). ~~Although~~We took several actions during fiscal 2020 to preserve our cash flows from operations has been significantly impacted by the lost revenue as of result of the COVID-19 pandemic, we believe that we have taken sufficient steps to manage our available cash flow for the foreseeable future. Duringliquidity, and in the first ~~six months~~quarter of fiscal ~~2020,~~2021, we ~~amended~~further strengthened our liquidity position by completing a direct offering of our common stock, which raised $4.4 million, net of offering costs, and by amending our Credit Facility to ~~increase~~allow for the refinancing of our $15.0 million FILO loan, which increased our borrowing ~~base, negotiated extended payment terms with vendors, cancelled inventory purchase orders, reduced operating costs and reduced capital spending.~~capability. Based on our current projections, we believe our cash on hand, availability under our Credit Facility, and ongoing cash generated from our ~~direct business, wholesale business and from the our retail~~ operations ~~although they are operating on reduced hours,~~ will be sufficient to cover our working capital requirements and limited capital expenditures for the next 12 months. However, we remain cautiously optimistic regarding the ~~extent~~duration of the pandemic and how it may continue to ~~which the COVID-19 pandemic will~~ impact our financial results ~~will depend on future developments, which are highly uncertain~~ and ~~cannot be precisely predicted at this time.~~liquidity.

For the first ~~six~~three months of fiscal 2021, cash flow from operations improved by approximately $24.6 million to $7.8 million as compared to $(16.8) million for the first three months of fiscal 2020 ~~cash flow from operations decreased by approximately $9.9 million to $(9.0) million as compared to $0.9~~and $(16.5) million for the first ~~six~~three months of fiscal 2019. Free cash flow, a non-GAAP measure, ~~decreased~~improved by ~~$4.4~~$25.4 million to ~~$(11.1)~~$7.0 million for the first ~~six~~three months of fiscal 2021 as compared to $(18.4) million for the first three months of fiscal 2020 ~~as compared to $(6.7)~~and $(20.2) million for the first ~~six~~three months of fiscal 2019. The ~~primary reason for this decrease~~improvement in free cash flow was primarily due to ~~a decrease~~our improvement in earnings ~~offset by a decrease in capital expenditures.~~as well as faster inventory turn. Cash flow from financing activities ~~increased $19.9~~decreased by $(60.3) million as compared to ~~$27.2 million for the first six months of~~ fiscal 2020, ~~as compared $7.3 million for the first six months of fiscal 2019,~~primarily due to the repayment of amounts outstanding under our revolver, including the repayment of most of the $30.0 million ~~draw-down~~that we drew-down on our Credit Facility in March 2020 to provide the Company with financial flexibility during the ~~pandemic.~~pandemic partially offset by the decrease in working capital needs.

The following is a summary of our total debt outstanding at ~~August~~May 1, ~~2020~~2021 with the associated unamortized debt issuance costs:

(in thousands)	Gross Debt Outstanding		Less Debt Issuance Costs			Net Debt Outstanding		Gross Debt Outstanding		Less Debt Issuance Costs			Net Debt Outstanding
Credit facility	$	66,803	$	(258	)	$	66,545	$	33,560	$	(189	)	$	33,371
FILO Loan		15,000		(159	)		14,841		17,500		(757	)		16,743
Total debt	$	81,803	$	(417	)	$	81,386	$	51,060	$	(946	)	$	50,114

Our Credit Facility provides for a maximum committed borrowing of $125.0 million, which, pursuant to an accordion feature, may be increased to $175.0 million upon our request and the agreement of the lender(s) participating in the increase (the “Revolving Facility”). The Credit Facility includes a sublimit of $20.0 million for commercial and standby letters of credit and a sublimit of up to $15.0 million for swingline loans. Borrowings made pursuant to the Revolving Facility under the Credit Facility bear interest, calculated under either the Federal Funds rate or the LIBOR rate, at a rate equal to the following: (a) the Federal Funds rate plus a varying percentage based on the Company’s excess availability, of either 1.75% or 2.00%, or (b) the LIBOR rate (the Company being able to select interest periods of 1 week, 1 month, 2 months, 3 months or 6 months) plus a varying percentage based on the Company’s excess availability, of either 2.75% or 3.00%. The current maturity date is May 24, 2023.

We had outstanding borrowings of ~~$66.8~~$33.6 million under the Credit Facility at ~~August~~May 1, ~~2020.~~2021. At ~~August~~May 1, ~~2020,~~2021, outstanding standby letters of credit were ~~$2.8~~$2.7 million and there were no outstanding documentary letters of ~~credit were $0.6 million.~~credit. The average monthly borrowing outstanding under the Credit Facility during the first ~~six~~three months ended ~~August~~May 1, ~~2020~~2021 was approximately ~~$69.2~~$51.2 million, resulting in an average unused excess availability of approximately ~~$23.2~~$24.3 million. Unused excess availability at ~~August~~May 1, ~~2020~~2021 was ~~$12.4~~$51.1 million.

~~The Credit Facility also includes a~~In March 2021, we refinanced our existing $15.0 million FILO loan ~~for $15.0~~(the “existing FILO loan”) and entered into a new $17.5 million FILO loan (the “new FILO loan”). The new FILO loan has higher advance rates and additional borrowing capacity of approximately $5.0 to $10.0 million. The total borrowing capacity under the new FILO loan is based on a borrowing base, generally defined as a specified percentage of the value of eligible accounts ~~including~~(including certain trade ~~names,~~names) that ~~steps~~step down over time, plus a specified percentage of the value of eligible inventory that steps down over time. ~~During~~The new FILO loan will be subject to quarterly principal repayments of $218,750 beginning December 31, 2021.

The new FILO loan is subject to a prepayment penalty, if any portion of the principal for the new FILO Loan is prepaid during the initial two-year period, equal to the greater of (i) the incremental interest that would have been incurred with respect to that principal repayment during the two year period and (ii) 3% of the principal prepayment, unless the prepayment occurs after March 16, 2022 in connection with the Company’s renegotiation of its Credit Agreement in which case the prepayment premium would be equal to 1% of the principal prepayment. The new FILO loan expires on May 24, 2023, but may be automatically extended in connection with any extension of the revolving facility under the Credit Agreement, but no later than March 16, 2026, without approval from the FILO lender.

Borrowings made under the new FILO loan will bear interest, at the LIBOR rate (with a LIBOR floor of 1.0%) plus an applicable margin rate of 7.50% during the first ~~quarter of fiscal 2020, we entered into an amendment that extended these advance rates to December 2020 before they begin to step down.~~

~~As a result of extending the advance rates under the FILO loan,~~six months from March 16, 2021. Thereafter, the applicable margin ~~rates~~rate will be 7.50% for ~~borrowings were increased by approximately 150 basis points.~~so long as the Company’s 12-month trailing consolidated EBITDA (as defined in the Fourth Amendment) measured as of the end of each month is less than $18.0 million, or 7.00% when 12-month trailing consolidated EBITDA is equal to or greater than $18.0 million. Accordingly, ~~current borrowings made under~~ the ~~FILO loan bear~~ interest~~calculated under either the Federal Funds rate or the LIBOR~~ rate at a rate equal to the following: (a) the Federal Funds rate plus a varying percentage based on the Company’s excess availability, of either 3.75% or 4.00% or (b) the LIBOR rate (the Company being able to select interest periods ofMay 1, week, 1 month, 2 months, 3 months or 6 months) plus a varying percentage based on the Company’s excess availability, of either 4.75% or 5.00%. At August 1, 2020, the outstanding balance of $15.0 million2021 was ~~in a 6-month LIBOR-based contract with an interest rate of 6.00%~~8.50%.

The following table sets forth the open stores and related square footage at ~~August~~May 1, 2021, May 2, 2020 and ~~August 3,~~May 4, 2019, respectively:

	August 1, 2020				August 3, 2019				May 1, 2021				May 2, 2020				May 4, 2019
Store Concept	Number of Stores		Square Footage		Number of Stores		Square Footage		Number of Stores		Square Footage		Number of Stores		Square Footage		Number of Stores		Square Footage
(square footage in thousands)
DXL Retail		228		1,729		220		1,697		222		1,691		228		1,729		220		1,697
DXL Outlets		17		82		16		82		17		82		17		82		16		82
Casual Male XL Retail		49		160		60		200		42		137		50		164		60		200
Casual Male Outlets		23		69		29		88		20		60		26		79		29		88
Rochester Clothing		-		-		3		36		-		-		-		-		3		36
Total Stores		317		2,040		328		2,103		301		1,970		321		2,054		328		2,103

InWe do not plan to open any new stores or rebrand any of our ~~efforts~~Casual Male XL stores during fiscal 2021. We have 155 stores that have leases with either a natural lease expiration or a kick-out option within the next two years. This provides us an opportunity to ~~preserve~~right size our ~~liquidity,~~store portfolio, through ongoing lease renegotiations or lease-term expirations, to ensure that we are optimizing our store profitability and omni-channel distribution. Since the beginning of fiscal 2020, we have ~~reduced the majority~~renegotiated approximately 115 of our ~~capital spending, unless such spending is necessary~~store leases, which we expect will result in over $16.1 million of savings over the life of the leases, including $6.0 million of expected savings in fiscal 2021. We will continue to work with our ~~immediate business needs.~~ landlords on leases where our rents are not aligned with sales.

Our capital expenditures for the first ~~six~~three months of fiscal ~~2020~~2021 were ~~$2.1~~$0.8 million as compared to ~~$7.6~~$1.6 million for the first ~~six~~three months of fiscal ~~2019.~~2020. During the first ~~six months~~quarter of fiscal ~~2020,~~2021, we closed ~~five Casual Male XL outlets and one~~4 DXL retail stores, 4 Casual Male XL retail ~~store.~~ stores and 2 Casual Male XL outlets.

There have been no material changes to the critical accounting policies and estimates disclosed in our Form 10-K for the year ending ~~February 1, 2020.~~January 30, 2021. See Note 1 to the Consolidated Financial Statements included in this report for information on recent accounting pronouncements and changes in accounting principles.

Adjusted net income (loss), adjusted net income (loss) per diluted share, free cash flow and Adjusted EBITDA are non-GAAP measures. These non-GAAP measures are not presented in accordance with GAAP and should not be considered superior to or as a substitute for net loss or cash flows from operating activities or any other measure of performance derived in accordance with GAAP. In addition, all companies do not calculate non-GAAP financial measures in the same manner and, accordingly, the non-GAAP measures presented in this Quarterly Report may not be comparable to similar measures used by other companies. We believe that inclusion of these non-GAAP measures helps investors gain a better understanding of our performance, especially when comparing such results to previous periods and that they are useful as an additional means for investors to evaluate our operating results, when reviewed in conjunction with our GAAP financial statements.

Reconciliations of these non-GAAP measures are presented in the following tables (certain columns may not foot due to rounding):

Adjusted net income (loss) and adjusted net income (loss) per diluted share. Adjusted net income (loss) and adjusted net income (loss) per share reflect an adjustment assuming a normal tax rate of 26% and the add-back of CEO transition and impairment of assets. We have fully reserved against our deferred tax assets and, therefore, net ~~income (loss)~~loss is not reflective of earnings assuming a “normal” tax position. Adjusted net loss provides investors with a useful indication of the financial performance of the business, on a comparative basis, assuming a normalized tax rate of 26%.

	For the three months ended											For the six months ended												For the three months ended
	August 1, 2020						August 3, 2019					August 1, 2020						August 3, 2019						May 1, 2021					May 2, 2020							May 4, 2019
	$			Per diluted share			$			Per diluted share		$			Per diluted share			$			Per diluted share			$			Per diluted share		$			Per diluted share			$				Per diluted share
(in thousands, except per share data)
Net income (loss) (GAAP basis)	$	(10,714	)	$	(0.21	)	$	38		$	0.00	$	(52,440	)	$	(1.03	)	$	(3,043	)	$	(0.06	)	$	8,697		$	0.14	$	(41,726	)	$	(0.82	)	$		(3,081	)	$	(0.06	)
Adjust:
Impairment of assets																									(652	)				16,335							-
CEO transition costs		-						-					-						702						-					-							702
Impairment of assets		-						-					16,335						-
Add back actual income tax provision (benefit)		24						(8	)				44						(29	)					28					20							(21	)
Add income tax (provision) benefit, assuming a normal tax rate of 26%		2,779						(8	)				9,376						616						(2,099	)				6,596							624

Adjusted net income (loss) (non-GAAP basis)	$	(7,911	)	$	(0.15	)	$	22		$	0.00	$	(26,685	)	$	(0.52	)	$	(1,754	)	$	(0.04	)	$	5,974		$	0.09	$	(18,775	)	$	(0.37	)	$		(1,776	)	$	(0.04	)

Weighted average number of common shares
outstanding on a diluted basis					51,078						50,175					50,918						49,734						63,000					50,758							49,602

Free Cash Flow. We define free cash flow as cash flow from operating activities less capital expenditures. Free cash flow excludes the mandatory and discretionary repayment of debt. Free cash flow is a metric that management uses to monitor liquidity. We expect to fund our ongoing capital expenditures with cash flow from operations.



	For the six months ended						For the three months ended
(in millions)	August 1, 2020			August 3, 2019			May 1, 2021			May 2, 2020			May 4, 2019
Cash flow from operating activities (GAAP basis)	$	(9.0	)	$	0.9		$	7.8		$	(16.8	)	$	(16.5	)
Capital expenditures, infrastructure projects		(1.4	)		(5.2	)
Capital expenditures for DXL stores		(0.7	)		(2.4	)
Capital expenditures								(0.8	)		(1.6	)		(3.7	)
Free Cash Flow (non-GAAP basis)	$	(11.1	)	$	(6.7	)	$	7.0		$	(18.4	)	$	(20.2	)

Adjusted EBITDA. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation and amortization and is before ~~CEO transition costs and~~ any impairment of ~~assets.~~assets and CEO transition costs. We believe that adjusted EBITDA is useful to investors in evaluating our performance.

	For the three months ended					For the six months ended						For the three months ended
	August 1, 2020			August 3, 2019		August 1, 2020			August 3, 2019			May 1, 2021			May 2, 2020			May 4, 2019
(in millions)
Net income (loss) (GAAP basis)	$	(10.7	)	$	0.0	$	(52.4	)	$	(3.0	)	$	8.7		$	(41.7	)	$	(3.1	)
Add back:
Impairment of assets													(0.7	)		16.3			-
CEO transition costs		-			-		-			0.7			-			-			0.7
Impairment of assets		-			-		16.3			-
Provision (benefit) for income taxes		-			-		0.0			-			-			-			-
Interest expense		1.1			0.9		1.8			1.7			1.1			0.7			0.9
Depreciation and amortization		5.3			6.2		11.1			12.5			4.5			5.7			6.3
Adjusted EBITDA (non-GAAP basis)	$	(4.3	)	$	7.1	$	(23.2	)	$	11.9		$	13.7		$	(18.9	)	$	4.8

In the normal course of business, our financial position and results of operations are routinely subject to a variety of risks, including market risk associated with interest rate movements on borrowings and foreign currency fluctuations. We regularly assess these risks and have established policies and business practices to protect against the adverse effects of these and other potential exposures.

We utilize cash from operations and from our Revolving Facility of our Credit Facility to fund our working capital needs. Our Credit Facility is not used for trading or speculative purposes. As part of our Credit Facility, we also have an outstanding ~~$15.0~~$17.5 million FILO loan. In addition, we have available letters of credit as sources of financing for our working capital requirements. Borrowings under the Credit Facility, which expires May 24, 2023, bear interest at variable rates based on Bank of America’s prime rate or LIBOR.

At ~~August~~May 1, ~~2020,~~2021, we had outstanding borrowings under our Revolving Facility of ~~approximately $66.8~~$33.6 million, of which ~~approximately $62.0~~$28.0 million were in LIBOR-based contracts with an interest rate of ~~approximately~~ 4.00%. The remainder was prime-based borrowings, with a rate of 5.25%. At ~~August~~May 1, ~~2020,~~2021, the ~~$15.0~~interest rate for the $17.5 million outstanding ~~borrowings~~ under the FILO loan ~~were in a LIBOR-based contract with an interest rate of 6.00%~~was 8.50%.

Based upon a sensitivity analysis as of ~~August~~May 1, ~~2020,~~2021, assuming average outstanding borrowing during the first ~~six~~three months of fiscal ~~2020~~2021 of ~~$69.2~~$51.2 million under our ~~Credit~~Revolving Facility and ~~$15.0~~$17.5 million outstanding under our FILO loan, a 50 basis point increase in interest rates would have resulted in a potential increase in interest expense of approximately ~~$421,000~~$344,000 on an annualized basis.

Our two DXL stores located in Ontario, Canada conduct business in Canadian dollars. ~~Both stores were closed temporarily on March 17, 2020 due to the COVID-19 pandemic and did not reopen until June 2, 2020 and June 16, 2020.~~ Sales from these stores were immaterial to consolidated sales. As such, we believe that movement in foreign currency exchange rates will not have a material adverse effect on our financial position or results of operations.

As required by Rule 13a-15 under the Exchange Act, our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of ~~August~~May 1, ~~2020.~~2021. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of ~~August~~May 1, ~~2020,~~2021, our disclosure controls and procedures were effective.

While the majority of our employees are working remotely during the COVID-19 pandemic, we have not experienced any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the ~~first six~~three months ended ~~August~~May 1, ~~2020~~2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

We are subject to various legal proceedings and claims that arise in the ordinary course of business. Management currently believes that the resolution of these matters will not have a material adverse impact on our future results of operations or financial position.

~~Except as described below, there~~There have been no material changes to the risk factors as previously disclosed in Part I, Item 1A of our Fiscal ~~2019~~2020 Annual Report.

The global impact of the COVID-19 pandemic has had and, based on the current status and uncertainty, will likely continue to have a significant adverse effect on our business, financial results, liquidity, supply chain and workforce.

On March 11, 2020, the World Health Organization declared the current outbreak of a novel coronavirus disease (“COVID-19”) a global pandemic. Federal, state and local agencies have mandated various restrictions including travel restrictions, restrictions on public gatherings, state of emergencies, stay-at-home orders and closure of all non-essential businesses, among others.

The COVID-19 pandemic has had, and will likely continue to have, a significant adverse effect on our business, financial results and liquidity. All of our stores were closed on March 17, 2020 and remained closed the end of April 2020, at which point we began to open our stores on a gradual basis through June 30, 2020. While our direct and wholesale businesses were operational, our total revenues for the first six months of fiscal 2020 decreased by approximately 43.4%. Based on the continuing uncertainty regarding the pandemic, we are unable, within reason, to estimate the impact to the remainder of fiscal 2020. As such, we are focused on mitigating the effects of the COVID-19 pandemic and preserving our liquidity. These efforts included, among other things, (i) the furloughing of substantially all of our associates while our stores remained closed, (ii) temporarily reducing, on a tiered basis, the salaries of all members of management through August 2, 2020, (iii) suspending merit increases, (iv) eliminating approximately 34 positions in May 2020 and an additional 430 store associates in July 2020, (v) suspending compensation for non-employee directors for the second quarter of fiscal 2020, (vi) eliminating capital expenditures and operating expenses, where possible, (vii) negotiating with vendors and landlords for extended payment terms, (viii) cancelling approximately $148.0 million of on-order merchandise, at retail, (ix) drawing approximately $30.0 million under our credit facility and amending that facility to increase our borrowing base availability by delaying the step-down of our advance rates and amending the agreement to permit the Company the ability to enter into an aggregate of up to $15.0 million in promissory notes with merchandise vendors, and (x) pursuing all opportunities that may be available to us under the ~~Coronavirus Aid, Relief and Economic Security Act, ("CARES Act").~~

The above actions may not be successful in mitigating the effects of this pandemic, which is highly uncertain and difficult to predict, and the actions that we take may negatively impact or delay our strategic initiatives. For example, even though the majority of our stores have reopened, we cannot be assured that (i) consumer demand and, therefore, sales will return to levels experienced prior to the pandemic, (ii) new practices or protocols could impact our business and may continue and/or increase, such as, for example, occupancy limitations, (iii) our stores can remain open if there is a resurgence of the virus and therefore need to close again, or (iv) our associates will be willing to staff our stores, as a result of health concerns. Furthermore;

In addition to the specific risks to our business noted above, we will also be subject to the long-term effects the COVID-19 pandemic may have on the U.S. economy as a whole. The U.S. is experiencing unprecedented unemployment and a possible economic recession that would likely impact consumer discretionary spending, and therefore consumer demand for our products. The magnitude of the impact of the COVID-19 pandemic will be determined by the length of time that the pandemic continues, and while government authorities’ measures relating to the pandemic may be relaxed as the pandemic abates, these measures may be reinstated as the pandemic continues to evolve. In addition to the risks noted above, the COVID-19 pandemic may also heighten other risks described in our Fiscal 2019 Annual Report, including risks to our supply chain, the health and safety of our customers and employees, and our ability to maintain compliance with the financial covenants under our Credit Facility.

Our common stock currently trades on The Nasdaq Global Select Market (“Nasdaq”). Nasdaq has continued listing standards that the Company must maintain to avoid delisting, including, among others, a minimum bid price requirement of $1.00 per share. On April 9, 2020, the Company received a letter from the Listing Qualifications staff of Nasdaq notifying the Company that, based upon the closing bid price of its common stock for the last 30 consecutive trading days, the Company was not in compliance with Nasdaq Listing Rule 5450(a)(1), as the minimum bid price for the Company’s common stock was less than $1.00 per share for the previous 30 consecutive trading days. At that time, the Company was granted a 180 calendar-day grace period to regain compliance with the

minimum bid price requirement. On April 17, 2020, the Company received a follow-up letter from the Listing Qualifications staff notifying the Company that they had determined to toll all compliance periods through June 30, 2020. Accordingly, the Company’s 180 calendar-day grace period to regain compliance with the minimum bid price requirement was extended to December 21, 2020.

On June 23, 2020, the Compensation Committee established the performance metrics for the 2020 Annual Incentive Plan (“AIP”), in which our Named Executive Officers participate. Our Named Executive Officers, as reported in the 2019 Proxy Statement are Messrs. Kanter, Stratton, Molloy, Chane and Gaeta. The potential payout for each performance metric is based on full-year results for fiscal 2020. A participant’s payout under the AIP is based on earned wages, accordingly, each participant’s earned wages for fiscal 2020 reflect a reduction in normal earnings due to either: (i) furlough or (ii) temporary pay reductions, ranging from 10% to 20%. Each of our Named Executive Officers took a temporary salary reduction of 20% for the period April 5, 2020 through August 2, 2020.None.

For fiscal 2020, Mr. Kanter, Mr. Stratton and Mr. Molloy will participate at 100%, 55% and 50% of their respective earned wages while Messrs. Chane and Gaeta will participate at 40% of their respective earned wages.

The following performance metrics and potential payouts levels are derived from the Company’s annual operating plan and budget for fiscal 2020, as revised in March 2020 for the COVID-19 pandemic. These metrics are intended to be achievable, with an approximate 50% probability; however, given the uncertainty surrounding the COVID-19 pandemic and its impact on our financial results, there is an inherent risk that these metrics may not be attainable. Consistent with prior years, we will disclose the actual targets under the AIP once the performance period has ended.

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Delaware	04-2623104
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
555 Turnpike Street Canton, MA	02021
(Address of principal executive offices)	(Zip Code)


Title of each class	Trading symbol(s)	Name of each exchange on which registered
~~Common Stock, $0.01 par value~~	DXLG	~~NASDAQ Stock Market LLC~~

	~~August~~May 1, ~~2020~~	2021
Expected volatility	~~82.3%~~97.4% - ~~87.8%~~104.9%
Risk-free interest rate	~~0.22%~~0.31% - ~~0.27%~~0.60%
Expected life	3.0 - 4.0 ~~yrs.~~
Dividend rate		—	-
Weighted average fair value of options granted	$~~0.32~~	0.47

				Potential Payout
Performance Metric	Weight			Threshold (50% payout)			Target (100% payout)			Maximum (150% payout, except Kanter where payout is 200%)

Sales		40	%		94.1	%		100.0	%		105.9	%

Adjusted EBITDA		40	%		89.1	%		100.0	%		110.9	%

Personal Goals (1)		20	%	-				100.0	%		150.0	%


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

~~4.1~~		~~Form of Indenture (included as Exhibit 4.1 to the Company’s Registration Statement on Form S-3 (File No. 333-238929) filed June 4, 2020 and incorporated herein by reference)~~.

10.1		~~Third Amended~~Employment Agreement between the Company and ~~Restated Long-Term Incentive Plan (included~~Stacey Jones effective as ~~Exhibit 10.1 to the Company’s Current Report on Form 8-K filed June 12, 2020 and incorporated herein by reference).~~of February 21, 2021.

10.2		Fourth Amendment to the Seventh Amended ~~Employment~~and Restated Credit Agreement ~~between~~dated March 16, 2021, by and among Bank of America, N.A., as Administrative Agent and Collateral Agent, the Lenders identified therein, PLC Agent LLC, as FILO Agent, the Company, as Lead Borrower, the Company and ~~Ujjwal Dhoot effective~~CMRG Apparel, LLC, as ~~of August 2, 2020.~~Borrowers, and the Guarantors identified therein (included as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on March 18, 2021, and incorporated herein by reference).*

10.3		Form of ~~Non-Qualified Option~~Stock Purchase Agreement ~~for Associates (pursuant~~(included as Exhibit 10.1 to the Company’s ~~Long-Term Incentive Plan,~~Current Report on Form 8-K/A, filed on February 5, 2021, and incorporated herein by reference).*

10.4		Placement Agency Agreement between the Company and D.A. Davidson & Co. (included as ~~amended)~~Exhibit 10.2 to the Company’s Current Report on Form 8-K/A, filed on February 5, 2021, and incorporated herein by reference).*

31.1		Certification of the Chief Executive Officer of the Company pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2		Certification of the Chief Financial Officer of the Company pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Inline XBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document.

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File – The cover page interactive data file does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.

		* Previously filed.

	DESTINATION XL GROUP, INC.

Date: ~~August~~May 27, ~~2020~~2021	By:	/S/ John F. Cooney
		John F. Cooney
		Vice President, Managing Director, Chief Accounting Officer and Corporate Controller (Duly Authorized Officer and Chief Accounting Officer)

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company