Casual Male Has Q4 Turnaround

"When we purchased Casual Male at a bankruptcy auction in May 2002, we said it was a three year turnaround story . The reality is it's a four year turnaround story," the firm's President, David A. Levin, told investors in a conference call Thursday.

Levin said the men's clothier was one year behind the earning plan laid out when CMRG took control of the languishing company but said the retailers strategy to improve its market share is working.

"Traffic is improving, we're delivering consistent comp sales increases, our gross margins look to improve this year and our marketing initiatives are going to pay off. Now it's all about execution," he said.

The turnaround can be seen in the numbers. For all of 2004, net income was $1.5 million, or 4 cents a share, compared with a loss of $12.1 million, or 34 cents a share, just one year earlier.

Sales in the fourth quarter, which ended Jan. 29, also improved significantly, rising by almost $24 million to $118.2 million from last year's fourth quarter sales of $ 94.5. Part of that increase was due to the firm's acquisition of the 22-store chain, Rochester Clothing, which the company acquired in 2004 after it divested of its interest in its Echo Outlet joint venture. The company also operates Casual Male Big &Tall stores.

Levin said the company's restructuring of its Casual Male business and the addition of new brands, including the George Foreman line of apparel which generated $57.3 million, or 23.3 percent of total sales , also helped the bottom line. The firm's internet business, which increased 62 percent last year, 87% in 2003 and 94% in 2002, also fueled the turnaround.

The Canton, MA-based clothier operates 493 Casual Male Big & Tall stores, 22 Rochester Big & Tall stores and plans to open 10 Casual Male and two or three Rochester stores in 2005.