Exhibit 99.1 |
2 Big & Tall Market • Market defined as: – big = waist size between 40” and 70” – tall = height over 6’2” • Big and tall men account for approximately 11% of the male population. • Big and tall market size is approximately $6 billion and growing at almost twice the rate of the regular size men’s apparel market. – Big & tall apparel market is highly fragmented; characterized by many small, local operators. |
3 Market is growing as a percent to total menswear sales Obesity Trends* Among U.S. Adults (*BMI 30, or about 30 lbs overweight) No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% 30% 1985 2005 2000 1995 1990 2007 Source: CDC |
4 Selected Income Statement Information $4.3m $3.0m $1.0m Interest Expense $33.9m $34.1m $20.0m Marketing Expense $-9.6m $7.6m $15.0m - $20.0m Free Cash Flow 44.4% 42.7% 43.7% - 44.2% Gross Margin $178.1m $178.1m $152.0m SG&A $464.1m $444.2m -11.0% to -12.0% Sales 2007 2008 2009 Projected • Free Cash Flow is defined as cash flow from operating activities, less capital expenditures and discretionary store asset acquisitions. |
5 Selected Balance Sheet Information $17.3m $12.5m $7.0 - $8.0m Fixed Term Loan $41.0m $38.7m $7.5m -$10.0m Borrowing Under Revolver $117.8m $98.6m $88.6m Inventory 2007 2008 2009 Projected • Projected Borrowing Under Revolver includes the impact from the September 2009 sale of stock from a shelf registration. |
Our Store Concepts |
7 Casual Male Stores • Casual Male XL is the nation’s largest specialty retailer of big & tall clothing with 396 full price stores and 65 outlet stores in 47 states CT-10 DE-3 RI-1 MA-13 MD-13 NH-3 NJ-20 VT-1 4 2 10 55 5 26 10 4 23 12 3 5 5 2 18 8 10 2 11 1 4 2 6 32 17 3 5 26 5 1 8 38 13 7 8 1 1 1 3 |
8 Rochester • Targets the higher income consumer within the big and tall market – $100,000 per year average salary • 20 store locations in downtown major metropolitan areas and upscale suburbs • Average store size: 8,156 square ft • Average sales / square foot: $256 – Stores carry higher-end designer product – Average transaction size: $300 Rochester * 1 London, United Kingdom Ma-1 DC-1 1 5 1 2 1 1 2 3 1 Locations |
Hybrid Stores |
10 Concept The Hybrid store, as conceived, is a combination Casual Male, Rochester store featuring the lifestyle sportswear apparel wardrobe needs offered by Casual Male, but with an added lifestyle of higher-end fashion apparel offered by Rochester and an enhanced Clothing section featuring the quality and fashion of Rochester Clothing and the price points of Casual Male clothing |
11 OAKBROOK, IL • Hybrid Store Front |
12 Hybrid Store Customers • Prior Casual Male XL only customers are now spending 16% of their purchases on Rochester merchandise. • Customers who previously shopped both Casual Male XL and Rochester Clothing are shopping more frequently. • Prior Rochester only customers that are now shopping at a Hybrid store are spending 4% more than Rochester non-hybrid customers. |
Destination XL Destination XLTM TM DXLTM – Superstore concept |
14 DXLTM Superstore – Customer Research • Through customer research conducted in 2009, customers expressed the need for more apparel choices within one store concept supporting the concept of Destination XL. – The Destination XL store concept received positive feedback from focus groups due to its comprehensive selection – Customers willing to travel between 45 minutes to 1 hour on average to shop the store |
15 DXLTM Store Concept • DXL Store will range from 10,000 SF – 12,000 SF as compared to the average Casual Male Store of 3,500 SF • DXL Store will combine all products at CMRG including Casual Male XL, Rochester Clothing, B&T Factory Direct, Living XL, and Shoes XL Expanding the assortment will offer consumers more than 3 times the current selection at Casual Male XL, allowing customers to select from a broad selection of price points and brands within each lifestyle. • In addition to the expansive merchandise, DXL Store will house new services such as on-site tailors and online ordering presented in a new and exciting way. |
16 DXLTM Store Concept • With the re-branding of Casual Male Big and Tall to Casual Male XL, we experienced increased traffic and new customers. We anticipate the same results with the new DXL logo and store front, attracting the smaller big and tall customer (42” – 44” waists) • CMRG has a plan to open 5 to 10 DXL stores in major markets each year over the next several years. • With the expansion of DXL stores, we will reduce the number of Casual Male XL stores with a market which we anticipate will result in lower operating costs and higher profits per store. |
17 DXLTM Schaumburg, IL • Moving our current 5,000-square foot Casual Male XL store less than a mile down the road to a 12,000-square foot DXL store. • We will roll in the two stores closest to Schaumburg, Bloomingdale and Niles 11.2 and 11.4 miles away respectively, with combined sales of close to one million dollars in 2008. • We expect 4-Wall Store Cash Flow to increase from 21% in our existing 3 Casual Male XL stores to 30%-35% with the new DXL store. |
9451 Schaumburg, IL 9183 Niles, IL 11.4 miles 9512 Bloomingdale, IL 11.2 miles DXL Schaumburg, IL 0.9 miles |
19 Invitation: Identity Application SAMPLE ONLY – NOT FINAL |
20 |
21 Club: Suits SAMPLE ONLY – NOT FINAL |
22 Prototype Only |
23 Our Direct to Consumer Brands CasualmaleXL.com Rochesterclothing.com Livingxl.com BTDirect.com ShoesXL.com |
24 CMRG Internet Sales by Year $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2002 2003 2004 2005 2006 2007 2008 |
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30 Europe United Kingdom France Italy Netherlands Spain Germany |
31 Casual Male XL Program Rewards • 2.6MM customers enrolled to date • 85% of all Casual Male XL customers are enrolled • Loyalty member’s average spend per transaction is 26% or $18 higher than non-members • 90% of all transactions involve a loyalty member |
32 • Launched a new level of the XL loyalty program in 2009 to 43,000 of Casual Male XL’s top customers. • Benefits included double point promotions, presale opportunities as well as special recognition on all marketing collateral. • Prestige customers spent almost $600 on clothing purchases in 2009. |
33 Forward Looking Statements: This presentation contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those indicated. Such risks and uncertainties may include, but are not limited to: the failure to implement the Company's business plan for increased profitability and growth in the Company's retail stores sales and direct-to-consumer segments, the failure of management to develop the Company’s new direct to consumer businesses, the failure of changes in management to achieve improvement in the Company's competitive position, adverse changes in costs vital to catalog operations, such as postage, paper and acquisition of prospects, declining response rates to catalog offerings, failure to maintain efficient and uninterrupted order-taking and fulfillment in our direct-to-consumer business, changes in or miscalculation of fashion trends, extreme or unseasonable weather conditions, economic downturns, escalation of energy costs, a weakness in overall consumer demand, increases in wage rates, the ability to hire and train associates, trade and security restrictions and political or financial instability in countries where goods are manufactured, increases in raw material costs from inflation and other factors, the interruption of merchandise flow from the Company's centralized distribution facilities, competitive pressures, and the adverse effects of natural disasters, war, acts of terrorism or threats of either, or other armed conflict, on the United States and international economies. These, and other risks and uncertainties, are detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2009 filed on March 23, 2009 and other Company filings with the Securities and Exchange Commission. Casual Male assumes no duty to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. |