Home / Knowledge / News / Apparel/Garments / Operating income up at Casual Male Retail

Operating income up at Casual Male Retail

28
Nov '11
Casual Male Retail Group Inc., the largest retailer of big & tall men's apparel and accessories, reported operating results for the third quarter and nine months ended October 29, 2011.

Third Quarter Highlights (3QFY11 vs. 3QFY10)
• Comparable sales increased 0.7% against prior year's comparable sales increase of 3.0%
• Operating loss of $1.4 million as compared to operating loss of $0.8 million.
• SG&A expenses include approximately $1.4 million, or $(0.03) per diluted share, for anticipated litigation settlements and incurred legal expenses to date.
• Net loss of $(1.6) million, or $(0.03) per diluted share, compared to net income of $0.3 million, or $0.01 per diluted share.
• Total sales decreased 0.6% to $89.4 million.
• Gross margin decreased 70 basis points (20 basis points in merchandise margin and 50 basis points in occupancy expense) to 45.0% as compared to 45.7% for the prior year.

Nine Month Highlights (2011 vs. 2010)
• Comparable sales increased 2.6% against prior year's comparable sales increase of 0.9%.
• Operating income increased 7.3% to $10.8 million as compared to operating income of $10.1 million for the prior year.
• Net income of $9.2 million, or $0.19 per diluted share, as compared to $10.0 million, or $0.21 per diluted share.
• Total sales increased 1.4% to $286.2 million.
• Gross margin increased 80 basis points to 46.8% as compared to 46.0% for the prior year.

Destination XL
Through the end of the third quarter of fiscal 2011, the Company has opened 7 new DXL stores with an additional 5 stores planned in the fourth quarter of fiscal 2011, resulting in 16 DXL stores opened by the end of fiscal 2011 (a decrease from previous guidance of 20 stores).

In addition, the Company anticipates opening 35-40 (an increase from previous guidance of 25 -30 stores) Destination XL stores in fiscal 2012. Because of the real estate and customer demographics, the size of each store will vary between 6,000 to 12,000 square feet, to accommodate each market.

During the third quarter, the Company introduced its DXL catalog and launched its DXL website. The Company's customers can now shop across all brands and product extensions and the new website brings all of its customers under one brand.

Fiscal 2011 Outlook
As a result of the sales shortfall that the Company experienced during the third quarter of fiscal 2011, the Company has revised its earnings forecast for fiscal 2011. For fiscal 2011, the Company expects earnings to be $0.35 to $0.38 per diluted share. This is a decrease from the Company's previous guidance of $0.40 to $0.45 per diluted share. The Company's revised earnings guidance is as follows:

• Total sales of $397.5 million to $402.5 million (a decrease from previous guidance of $405 - $410 million). Total sales for fiscal 2011 are expected to be lower than our previous guidance due to the decrease in store traffic experienced during the third quarter of fiscal 2011.


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Pharr sells Pharr High Performance to Coats Group

Pharr, a provider of differentiated textile products and assorted...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

TOAI highlights importance of textiles in auto industry

The first edition of the conference 'Textile Opportunities in a...

Pic: Shutterstock

Textiles | On 22nd Feb 2020

Cocona's 37.5 fibres to have new biodegradable additive

All of the 37.5 staple fibres and filament yarns by Cocona, will now...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The new deal is better than NAFTA for the US textile industry

Textile industry, Head honchos

Textile industry
Head honchos

Relaxation in FDI norms will support growth of retail sector

Top executives, Textile industry

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Mala Alwani,

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Martina Giorgetti,

Martina Giorgetti

Italy-based Cibitex is a manufacturer of textile finishing machinery,...

Henk-Jan Rohaan,

Henk-Jan Rohaan

The custom-built machineries of Brugman Holland are known for reliability, ...

Larry L Kinn, Suominen Corporation

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search