For Information Contact:
Company Contact:
Jeff Unger, Investor Relations
(561) 514-0115
Andrew Bard, Weber Shandwick Worldwide
(212) 445-8368
Casual Male Retail Group, Inc. Reports Fourth Quarter Comparable Sales
Increase of 7.5% and Fiscal Year 2006 Comparable Sales Increase of 9.0%
CANTON, MA, February 8, 2007 -- Casual Male Retail Group, Inc.
(NASDAQ/NMS: "CMRG"), retail brand operator of Casual Male XL and
Rochester Big & Tall, today reported its sales results for the fourth
quarter and fiscal year 2006.
Total sales for the 14 week period ended February 3, 2007 increased
12.5% to $145.8 million from $129.7 million for the prior year's 13
week period ended January 28, 2006. Comparable sales for the 13 week
period of the fourth quarter of fiscal 2006 increased 7.5% as compared
to the comparable 13 week period of the fourth quarter of fiscal 2005.
For the 53 week fiscal year ended February 3, 2007, total sales
increased 10.9% to $467.4 million from $421.4 million for the 52 week
fiscal year ended January 28, 2006. Comparable sales for the first 52
weeks of fiscal year 2006 increased 9.0% as compared to the comparable
52 week period of fiscal 2005. The additional week in fiscal 2006
generated sales of approximately $6.7 million.
"Our comp sales results were 7.5%, which is our thirteenth consecutive
quarter of positive comp sales. We were unable to sustain our previous
trend of 9.7%, as sales were less than expected during the significant
six-week holiday period. The warm weather in December negatively
affected store traffic and sales of seasonal apparel; although sales
returned to previous trends in the month of January. In addition, sales
for our Rochester catalog division were below current trends. We are
engaged in litigation that seeks, among other things, to recover
damages that the Rochester catalog division sustained as a result of
competitive activity and electronic data destruction that we believe
were unlawful. We continued our plan of less promotional activity than
a year ago, and as expected, gross margins will improve by at least 100
basis points over last year," said David Levin, Chief Executive Officer
and President of Casual Male.
Dennis Hernreich, Executive Vice President COO/CFO of Casual Male
added, "In the quarter, the Company incurred incremental expenses
associated with the initial start-up of new businesses and product
extensions, such as, BT Factory Direct, Jared M. and ThinkBig.com.
Considering the effects of the higher level of expenses and softer than
anticipated sales during the quarter, the Company is expecting to
report earnings per share in the fourth quarter of between $0.19 and
$0.21 per share without consideration for any reversals of tax
allowance reserves, compared to $0.18 per share for the fourth quarter
of 2005, as adjusted for comparability."
The Company expects to release its fourth quarter and fiscal year end
2006 earnings on March 29, 2007 and will hold a conference call and web
cast at http://www.casualmale.com/investor.
During the conference call, the Company may discuss and answer
questions concerning business and financial developments and trends.
The Company's responses to questions, as well as other matters
discussed during the conference call, may contain or constitute
information that has not been disclosed previously.
In addition to the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), our above discussion
with regards to expected fourth quarter earnings includes a reference
to prior year fourth quarter earnings of $0.18 per share, which has
been adjusted for comparability to reflect a normalized tax rate, which
is a non-GAAP measure. Normalized tax basis reflects a 37.5% effective
tax rate on pre-tax income (loss). The Company believes that the
inclusion of this non-GAAP measure helps investors to gain a better
understanding of the Company's performance, especially when comparing
such results to the current fourth quarter estimates. However, this
non-GAAP financial measure included in this press release is not meant
to be considered superior to or as a substitute for results of
operations prepared in accordance with GAAP. The following table shows
the reconciliation of net income for the fourth quarter of fiscal 2005
of $0.33 per diluted share, on a GAAP basis, to $0.18 per diluted
share, affected for the adjustment for normalized taxes and without the
net tax benefit of $2.8 million, primarily related to the reversal of
the Company's valuation allowance, and the $1.0 million in net charges
incurred in connection with the retirement of the Company's long-term
debt.
Fourth Quarter
Fiscal 2005
(in millions, except for earnings
per share(EPS) amounts)
Diluted
EPS
Net income as reported $13.5 $0.33
Add back of other expense, net
(associated with the prepayment of
certain long-term debt) 1.0 0.02
Deduct benefit from valuation allowance
reversal, net of tax accrual (2.8) (0.06)
Income tax provision, assuming
normalized tax of rate of 37.5% (4.4) (0.11)
Adjusted net income, after normalized tax benefit $7.3 $0.18
Weighted average shares outstanding -- diluted 45.1
Casual Male Retail Group, Inc., the largest retailer of big and tall
men's apparel with retail operations throughout the United States,
Canada and London, England, operates 472 Casual Male XL stores, the
Casual Male e-commerce site, Casual Male catalog business, 12 Casual
Male at Sears-Canada stores, 24 Rochester Big & Tall stores and a
direct-to-consumer business. The Company is headquartered in Canton,
Massachusetts, and its common stock is listed on the NASDAQ Global
Market under the symbol "CMRG."
The discussion of forward-looking information requires management of
the Company to make certain estimates and assumptions regarding the
Company's strategic direction and the effect of such plans on the
Company's financial results. The Company's actual results and the
implementation of its plans and operations may differ materially from
forward-looking statements made by the Company. The Company encourages
readers of forward-looking information concerning the Company to refer
to its prior filings with the Securities and Exchange Commission that
set forth certain risks and uncertainties that may have an impact on
future results and direction of the Company.
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