Casual Male Retail Group, Inc. Reports Sales and Operating Results for the Second Quarter and First Six Months of Fiscal 2008
CANTON, Mass., Aug. 21 /PRNewswire-FirstCall/ -- Casual Male Retail Group, Inc. (Nasdaq: CMRG), retail brand operator of Casual Male XL, Rochester Clothing, B&T Factory Direct, LivingXL and ShoesXL, announced today its sales and operating results for the second quarter and first six months of fiscal 2008.
Comparable sales for the thirteen week period ended August 2, 2008 increased 0.3% when compared to the same period of the prior year. For the twenty-six week period ended August 2, 2008 comparable sales decreased 0.8% as compared to the same period of the prior year. Total sales for the second quarter of fiscal 2008 remained flat at $113.5 million as compared to the second quarter of fiscal 2007. For the first six months of fiscal 2008, total sales decreased 1.4% to $221.1 million as compared to $224.2 million for the same period in the prior year.
For the second quarter of fiscal 2008, net income was $1.9 million, or $0.05 per diluted share, compared to net income for the second quarter of fiscal 2007 of $2.5 million, or $0.06 per diluted share. For the first six months of fiscal 2008, net income was $2.0 million, or $0.05 per diluted share, as compared to net income of $3.6 million, or $0.08 per diluted share for the first six months of fiscal 2007.
"Despite the continued weakness in the economy and in the men's apparel business, we saw an improvement in our sales performance trends this past quarter. Although overall store traffic continues to be down, our conversion rates and average sales transactions are up, which indicate to us we are executing well in this difficult retail environment," said David Levin, President and CEO of Casual Male.
2008 Guidance and Highlights
The Company has revised its earnings guidance for fiscal 2008 to $0.22 to $0.27 per diluted share, a decrease of $0.03 per diluted share from prior guidance, based on an estimated total sales level of $470 to $475 million. The earnings guidance was adjusted primarily as a result of expectations of continued weakness in the economy and softness in traffic and sales trends.
Investors are invited to listen to a broadcast of the Company's conference call to discuss its second quarter and first six months of fiscal 2008 earnings results. The conference call will broadcast live today, Thursday, August 21, 2008 at 9:00 a.m. Eastern Time at www.casualmalexl.com and then click on the investor relations icon. The call will be archived online within one hour after its completion. Participating in the call will be David Levin, President and Chief Executive Officer, and Dennis Hernreich, Executive Vice President, Chief Operating Officer and Chief Financial Officer.
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.
Casual Male Retail Group, Inc., the largest retailer of big and tall men's apparel with operations throughout the United States, Canada and London, England, operates 463 Casual Male XL retail and outlet stores, 27 Rochester Clothing stores, and direct to consumer businesses which include several catalogs and e-commerce sites. The Company is headquartered in Canton, Massachusetts, and its common stock is listed on the NASDAQ Global Market under the symbol "CMRG."
Certain information contained in this press release, including the Company's expectations regarding sales and operating results for fiscal 2008, constitutes forward-looking statements under the federal securities laws. The discussion of forward-looking information requires management of the Company to make certain estimates and assumptions regarding the overall retail environment and the Company's strategic plans 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, including without limitation, its Annual Report on Form 10-K filed on March 26, 2008, that set forth certain risks and uncertainties that may have an impact on future results and direction of the Company.
Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The Company undertakes no obligation and expressly disclaims any duty to update such statements.
CASUAL MALE RETAIL GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) For the three For the six months ended months ended August 2, August 4, August 2, August 4, 2008 2007 2008 2007 Sales $113,475 $113,529 $221,117 $224,160 Cost of goods sold including occupancy 62,137 60,699 121,440 120,706 Gross profit 51,338 52,830 99,677 103,454 Expenses: Selling, general and administrative 43,485 42,875 86,805 86,217 Depreciation and amortization 4,107 4,194 8,275 8,218 Total expenses 47,592 47,069 95,080 94,435 Operating income 3,746 5,761 4,597 9,019 Other income, net 132 138 262 275 Interest expense, net (733) (1,070) (1,554) (1,876) Income from continuing operations before income taxes 3,145 4,829 3,305 7,418 Provision for income taxes 1,258 1,931 1,322 2,965 Income from continuing operations 1,887 2,898 1,983 4,453 Loss from discontinued operations, net of taxes - (425) - (854) Net income $1,887 $2,473 $1,983 $3,599 Net income per share - basic Income from continuing operations $0.05 $0.07 $0.05 $0.11 Loss from discontinued operations $0.00 ($0.01) $0.00 ($0.02) Net income per share - basic $0.05 $0.06 $0.05 $0.09 Net income per share - diluted Income from continuing operations $0.05 $0.07 $0.05 $0.10 Loss from discontinued operations $0.00 ($0.01) $0.00 ($0.02) Net income per share - diluted $0.05 $0.06 $0.05 $0.08 Weighted-average number of common shares outstanding: Basic 41,405 41,606 41,398 41,899 Diluted 41,689 43,338 41,690 43,878 CASUAL MALE RETAIL GROUP, INC. CONSOLIDATED BALANCE SHEETS August 2, 2008 and February 2, 2008 (In thousands) August 2, 2008 February 2, 2008 ASSETS Cash and investments $5,643 $5,293 Inventories 112,742 117,787 Other current assets 14,647 14,316 Deferred income taxes 27,300 28,617 Property and equipment, net 60,794 62,156 Goodwill and other intangibles 99,143 95,851 Other assets 1,255 1,341 Total assets $321,524 $325,361 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable, accrued expenses and other liabilities $57,367 $65,080 Notes payable 44,896 40,978 Long-term debt, net of current portion 10,013 12,450 Deferred gain, net of current portion 24,180 24,912 Stockholders' equity 185,068 181,941 Total liabilities and stockholders' equity $321,524 $325,361
SOURCE Casual Male Retail Group, Inc.
Jeff Unger, Vice President of Investor Relations of Casual Male Retail Group, Inc.
Andrew Bard of Weber Shandwick