CANTON, Mass., Feb. 2, 2012 /PRNewswire/ -- Casual Male
Retail Group, Inc. (NASDAQ: CMRG), the largest retailer of
big & tall men's apparel and accessories, today announced
revised earnings guidance for the fiscal year ending January 28, 2012 ("fiscal 2011"). The Company
expects earnings per share for fiscal 2011 to be $0.28 to $0.29 per diluted share compared to
previous guidance of $0.35 to $0.38
per diluted share.
"We experienced a negative traffic trend during the fourth
quarter as a result of the sluggish economy and the unseasonable
winter weather," said David A.
Levin, President and Chief Executive Officer. "In an effort
to maintain appropriate inventory levels and improve customer
traffic, we increased our promotional activity and reduced pricing
on our seasonal inventory during the fourth quarter, which had a
negative impact on our expected gross margin rate for fiscal
2011."
For the fourth quarter and fiscal year 2011, the Company expects
that comparable sales for the Company increased 0.8% and 2.1%,
respectively, as compared to the comparable prior year
period. As a result, sales for fiscal 2011 will approximate
$397.7 million, as compared to the
Company's previously reported sales range of $397.5 to $402.5 million. The Company
expects the gross margin rate for fiscal 2011 to range from 46.1%
to 46.2%, a decrease from its previous guidance of 46.9% to
47.3%. Operating expenses (SG&A) for fiscal 2011, which
were previously expected to increase by approximately 3%, are
expected to be slightly more favorable partly due to there being no
management incentive bonuses since performance is below
profitability targets.
For the fourth quarter of fiscal 2011, comparable sales from the
Company's 16 DestinationXL® ("DXL®") stores increased 9.0% as
compared to the prior year's fourth quarter. For fiscal 2012,
the Company plans to open 35-40 additional DXL stores, resulting in
approximately 51-56 DXL stores operating at the end of fiscal 2012,
with at least one store located in most of the major metropolitan
cities across the United States.
At the same time, the Company expects to close approximately 60
existing stores, most of which are in connection with opening these
DXL stores, resulting in an estimated store count of approximately
425 stores at the end of fiscal 2012.
The Company plans to report its fourth quarter and fiscal 2011
financial results on March 15, 2012
when management will also conduct its quarterly conference call to
discuss its results for fiscal 2011 as well as its fiscal 2012
outlook. 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 Europe, operates 420 CasualMaleXL retail and
outlet stores, 16 DestinationXL stores, 14 Rochester Clothing
stores, and direct-to-consumer businesses which include several
catalogs and e-commerce sites, including www.destinationxl.com. 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 the fourth quarter
and fiscal 2011, as well as the Company's expectations regarding
store openings and closing during fiscal 2012, 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. These factors
include, without limitation, the following: the risk that
additional information may arise during the Company's close process
or as a result of subsequent events that would require the Company
to make adjustments to the financial information; the risk that
adjustments to the Company's financial statements may be identified
through the course of the Company's independent registered public
accounting firm completing its integrated audit of the Company's
financial statements and financial controls; and the risk that the
Company will be unsuccessful in implementing its strategic plans
with respect to store openings and closings in fiscal 2012. The
Company also 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 18, 2011, 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.
SOURCE Casual Male Retail Group, Inc.