Casual Male Retail reports sales results Q1 of fiscal 2009
22 May '09
4 min read
SG&A For the first quarter of fiscal 2009, our SG&A costs decreased $6.2 million, or 14.2% over last year. This decrease is a result of our cost-reduction initiatives and is in line with our expectation to reduce full-year SG&A costs by approximately $26.0 million.
Cash Flow Our Free Cash Flow (as defined below) this quarter improved by $8.0 million to $(2.8) million as compared to $(10.8) million last year.
Balance Sheet & Liquidity We have decreased our inventory levels by $17.9 million, or 14.5%, to $105.6 million from $123.6 million at the end of last year's first quarter. Our total debt is lower than last year's first quarter by $15.1 million and our credit line availability is at $30 million at the end of the first quarter.
Fiscal 2009 Outlook Given the continued uncertainty in the economy, we continue to expect sales for the year to be approximately 10% less than last year. We expect our merchandise margins to improve 275 to 325 basis points, an increase of 50 basis points from our guidance provided in March 2009. However, as a result of the sales shortfall, our merchandise margin improvement will be partially offset by unfavorable leveraging of fixed occupancy costs of approximately 150 basis points.
With our total expected cost savings in SG&A of approximately $26.0 million, we anticipate that SG&A for the year will approximate $151.0 million, or a decrease of 15% over the prior year, representing an $11 million improvement from our previous guidance. Free Cash Flow for fiscal 2009 is expected to approximate $25 million and overall debt levels are anticipated to decline to $20-$25 million, an improvement of approximately $10 million in each case from our last guidance.