Casual Male Retail Group, Inc. Reports Sales and Operating Results for the First Quarter of Fiscal 2008
CANTON, Mass., May 22 /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 first quarter of fiscal 2008.
Sales for the first quarter of fiscal 2008 decreased 2.7% to $107.6 million from $110.6 million for the first quarter of fiscal 2007. Comparable sales for the thirteen week period ended May 3, 2008 decreased 2.0% when compared to the same thirteen week period of the prior year.
For the first quarter of fiscal 2008, net income was $96,000, or $0.00 per diluted share, compared to net income for the first quarter of fiscal 2007 of $1.1 million, or $0.03 per diluted share. Results for the first quarter of fiscal 2007 include a loss from the Jared M discontinued operations of $0.4 million, or $(0.01) per diluted share.
"As we anticipated, our first quarter sales were impacted by the difficult economy and overall weakness in the men's apparel business, but we were able to maintain our merchandise margin rates and control our expenses," said David Levin, President and CEO of Casual Male. "We are also encouraged that while store traffic was down, our conversion rate and average sales transaction at Casual Male XL improved significantly in the first quarter."
2008 Guidance and Highlights
The Company continues to expect earnings per share for fiscal 2008 of approximately $0.25 to $0.30 per diluted share, based on an estimated total sales level of $470 to $480 million.
Investors are invited to listen to a broadcast of the Company's conference call to discuss its first quarter fiscal 2008 earnings results. The conference call will broadcast live today, Thursday, May 22, 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 466 Casual Male XL retail and outlet stores, 26 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 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 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, 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.
[tables to follow] CASUAL MALE RETAIL GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) For the three months ended May 3, 2008 May 5, 2007 Sales $107,642 $110,631 Cost of goods sold including occupancy 59,303 60,007 Gross profit 48,339 50,624 Expenses: Selling, general and administrative 43,320 43,342 Depreciation and amortization 4,168 4,024 Total expenses 47,488 47,366 Operating income 851 3,258 Other income, net 130 138 Interest expense, net (821) (807) Income from continuing operations before income taxes 160 2,589 Provision for income taxes 64 1,036 Income from continuing operations 96 1,553 Loss from discontinued operations, net of taxes - (429) Net income $96 $1,124 Net income per share - basic Income from continuing operations $0.00 $0.04 Loss from discontinued operations $0.00 ($0.01) Net income per share - basic $0.00 $0.03 Net income per share - diluted Income from continuing operations $0.00 $0.04 Loss from discontinued operations $0.00 ($0.01) Net income per share - diluted $0.00 $0.03 Weighted-average number of common shares outstanding: Basic 41,391 42,191 Diluted 41,692 44,383 CASUAL MALE RETAIL GROUP, INC. CONSOLIDATED BALANCE SHEETS May 3, 2008 and February 2, 2008 (In thousands) May 3, 2008 February 2, 2008 ASSETS Cash and investments $6,381 $5,293 Inventories 123,558 117,787 Other current assets 16,207 14,316 Deferred income taxes 28,527 28,617 Property and equipment, net 60,733 62,156 Goodwill and other intangibles 95,772 95,851 Other assets 1,316 1,341 Total assets $332,494 $325,361 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable, accrued expenses and other liabilities $60,235 $65,080 Notes payable 53,996 40,978 Long-term debt, net of current portion 11,231 12,450 Deferred gain, net of current portion 24,546 24,912 Stockholders' equity 182,486 181,941 Total liabilities and stockholders' equity $332,494 $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