As to the sleeves, when you put on a sweater, it will take up some of the length. Navy Regs state cuffs should be 3/4 of the way from the wrist to the knuckles; that's about where your sleeves fall. The body is a bit large and could use a bit of a nipping in. It appears to be a bit large overall.
You can stretch the back by hugging yourself, and it will stretch naturally as it breaks in.
A size 38 ought to measure about 20.25" p2p. Looks like this one will measure well over that--maybe 21.25"? Please let us know the p2p and the model name for future reference. PC
There is Navy regs style and then there is contemporary style. I find Navy regs a bit too "relaxed" in look and feel. Nothing against those who want a more traditional fit, but I personally think a more modern James Bond-like fit is very good looking.