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): May 22, 2008
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 2.02 | Results of Operations and Financial Condition. |
On May 22, 2008, Casual Male Retail Group, Inc. (the “Company”) issued a press release announcing the Company’s sales and results of operations for the first quarter of fiscal 2008. The Company also provided guidance with respect to expected earnings per diluted share for fiscal 2008. A copy of this press release is attached hereto as Exhibit 99.1.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. |
Description | |||
| 99.1 | Press release announcing sales and operating results for the first quarter of fiscal 2008. |
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: May 22, 2008
Exhibit 99.1
For Information, Contact:
Jeff Unger
Vice President of Investor Relations
Casual Male Retail Group, Inc.
561-514-0115
Andrew Bard
Weber Shandwick
212-445-8368
CASUAL MALE RETAIL GROUP, INC. REPORTS SALES AND OPERATING RESULTS
FOR THE FIRST QUARTER OF FISCAL 2008
CANTON, MA, (May 22, 2008) — 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 | ||
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