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FORM 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): September 7, 2006

0-15898

(Commission File Number)

 

CASUAL MALE RETAIL GROUP, INC.

(Exact name of registrant as specified in its charter)

 

Delaware   04-2623104
(State of Incorporation)  

(IRS Employer

Identification Number)

555 Turnpike Street, Canton, Massachusetts 02021

(Address of registrant’s principal executive office)

(781) 828-9300

(Registrant’s telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act(17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act(17 CFR 240.13e-4(c))

 

ITEM 7.01 - REGULATION FD DISCLOSURE

The Company will be presenting a slide presentation to various investment groups as part of its upcoming road show. A copy of the slides to be presented at those meetings is attached to this report as Exhibit 99.1, which slide presentation is incorporated by reference herein.

The slide presentation contained in the exhibit includes statements intended as “forward-looking statements,” which are subject to the cautionary statement about forward-looking statements set forth in the exhibit. The slide presentation is being furnished, not filed, pursuant to Regulation FD. Accordingly, the slide presentation will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the slide presentation is not intended to, and does not, constitute a determination or admission by the Company that the information in the slide presentation is material or complete, or that investors should consider this information before making an investment decision with respect to the Company.

ITEM 9.01 - FINANCIAL STATEMENTS AND EXHIBITS

 

  (d) Exhibits

 

Exhibit No.   

Description

99.1    Presentation dated September 7, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

CASUAL MALE RETAIL GROUP, INC.

By:

  

/S/ DENNIS R. HERNREICH

Name:

  

Dennis R. Hernreich

Title:

  

Executive Vice President

 

and Chief Financial Officer

Date: September 7, 2006

Presentation dated Sptember 7, 2006
September 2006
Exhibit 99.1

Casual Male Retail Group
properly positioned to
increase market share to
12% of the big & tall market

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.

1991
Market is growing as a percent to total
menswear sales
Obesity Trends* Among U.S. Adults
1996
(*BMI
30, or about 30 lbs overweight)
No Data         <10%           10%–14%
15%–19%          20%–24%           
25%
2004
In 2004, 7 states had
obesity prevalence
rates of 15–19
percent; 33 states had
rates of 20–24
percent; and 9 states
had rates more than
25 percent

Casual Male Retail Group
has divisions which
support all demographics
within the big & tall
market

Jared M.
•
Custom clothing continues to be growing
in the higher-end men’s business
•
Spring ’07 launch
–
Jared M. shops in high profile Rochester
markets
–
Jared M. catalog
–
Jared M. website

Jared M.
Three areas of opportunity for growth of
Jared M. concept
•
Custom Clothing
–
Rochester is underdeveloped in custom clothing
(3.5% of sales)
–
Jared M. custom shops will contribute to the
contemporary portion of this opportunity
–
New Showroom/Production facility in lower
Manhattan will also support custom clothing
•
Athlete clientele growth
–
Jared M. has solid NBA athlete clientele
–
Project other athlete clientele opportunities in
NFL, MLB, NHL, etc.
•
Exclusive Collection for Rochester Big & Tall
–
Store, catalog and web channels

Rochester Brands

Rochester Overview
•
Rochester currently with 23 US stores 
•
1 store in United Kingdom.
Rochester
* 1 London, United Kingdom
8
3
2

Casual Male Objectives to Increase
Market Share
•
Raise productivity sales per square foot
•
Increasing sales of “smaller”
sizes
•
Attract “younger”
big and tall customers to
Casual Male XL
•
Grow multi channel
•
New marketing efforts
–
Loyalty

Comp Store Trend
-5.0%
-2.3%
-1.1%
2.4%
9.2%
4.8%
1.6%
2.0%
2.3%
2.5%
3.70%
7.90%
5.40%
10.60%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2004
2003
Stores change to
lifestyle presentation
Launch of George Foreman
collection and TV campaign
2005
2006

Sales Per Square Foot
181
184
188
200
170
175
180
185
190
195
200
2003
2004
2005
2006
Forecasted

Casual Male Stores
•
Casual Male XL is the nation’s largest
specialty retailer of big & tall clothing with
485 stores in 44 states
CT-11
DE-3
RI-1
MA-14
MD-13
NH-3
NJ-21
VT-1
5
3
8
55
6
27
11
4
28
12
4
5
5
3
23
9
12
2
11
1
4
2
5
31
22
3
5
26
7
1
9
37
14
7
9
2
Long term potential –
additional 100-130 more
stores

Annual Relocation Plan
2008
2007
2006
Calendar Year
26
28
11
Number of Stores
Relocation of lower performing store will improve $ per
square foot
Relocation Potential

9064 Utica, MI to Sterling Heights, MI
¼
mile apart / Cost $41,975
Old Location:
In-Line Strip Center
with Vacant Anchor
No Street Visibility
4000 Sq. Ft
05 sales: $817,000
05 cash flow: $194,000
New  Location:
End-Cap
Multi-Tenant Building
Mall Pad
3500 Sq. Ft
Trend prior to relocation:  -1.61%
Trend after relocation:  22.89%

9612 Katy, TX
8 miles apart / Cost $126,194
Old Location:
Power Center
Multi-Tenant Pad
2500 Sq. Ft
05 sales: $439,000
05 cash flow: $90,000
New Location:
Duplex Pad
End Cap within
Regional Power Center
3700 Sq. Ft
Trend prior to relocation :  6.12%
Trend after relocation 03/30/06: 29.41%

Increasing sales of smaller
sizes within big & tall

National Sales by Size
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
30
32
34
36
38
40
42
44
46-60
Waist

Market Share Size Opportunity
Casual Male Sales by Size
Data based on ’04 sales of Casual
Pants, Dress Pants and Jeans
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
Waist Size

Rebranding Casual Male

Customer Research
•
Least favorite aspect of clothing shopping was “difficulty
finding items in my size”
–
They were shopping at “the end of the rack”
–
Stigma with “big and tall”
store
–
“big and tall”
stores were consistently referred to as
places where “fat guys”
shop
•
Current image associated with Casual Male
–
A degree of discomfort with shopping at the store for
“big and tall”
–
Belief that the clothing started around a 48”
waist
–
Merchandise and selection lacked a sense of style
–
Had unattractive, inconvenient locations
–
Casual Male was a place of necessity rather than a
destination of choice

50% of customers refer to Casual Male as the “Big & Tall”
store

Before

After

Attracting “Younger”
Big & Tall
Customers to Casual Male Brand

Obesity in Young Men
•
Opportunity to increase penetration of under 30 demographic
–
Among
American
men
ages
20
-
34,
prevalence
of
obesity
has
increased dramatically since 1976
•
CM
indexes
low
in
young
men’s
demo-
identifies
opportunity
for
growth
Men Age 20 - 34
8.9
14.1
21.7
0
5
10
15
20
25
1976-1980
1988-1994
1999-2002

Customer Lifestyles
Synrgy
Age 18-35
Harbor Bay
Age 30-50
626 Blue
Age 18-35

Multi Channel Shopping
In-store, Catalog & Online

Customer Sales by Channel
* Indexed to retail only shoppers
100
123
104
276
290
286
455
0
50
100
150
200
250
300
350
400
450
500
Retail only
Catalog Only
E-commerce
Only
Retail &
Catalog
Retail & E-
commerce
Catalog & E-
commerce
Retail &
Catalog & E-
commerce

Casual Male Direct Growth
•
Penetration of Casual Male’s direct business continues
to grow…
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
2004
2005
2006 Forecast

Casual Male Internet Sales by Year
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
2002
2003
2004
2005
2006
Forecast

Loyalty Program

Loyalty Program Launch Mailer
•
Mail date: October 15
th
/
Circulation: 1M
•
Creative: 24 page mailer
with wrap
•
Free gift in store for top
15K customers
•
Top 300K customers will
be auto-enrolled and will
receive loyalty card &
populated application
with brand mailer
•
~600K customers will
receive populated
customer application with
brand mailer

B & T Factory Direct
•
Launching a new Direct venture which
addresses the lower end big & tall shopper
•
Strategy is to take market share from King
Size, largest direct business in bit & tall
•
Initial phase is web launch in mid-September
with B&T Factory Direct site;www.btdirect.com
•
Launch 68 page catalog in Spring ‘07

B & T Factory Direct

B & T Factory Direct