Casual Male RetailGroup, Inc., retail brand operator of Casual Male XL, Rochester Big & Tall, B&T Factory Direct, Living XL and Shoes XL, announced today its operating results for the fourth quarter and fiscal year ended February 2, 2008.
Comparable sales for the fourth quarter of fiscal 2007 decreased 0.3% when compared to the same 13 week period of the prior year's fourth quarter and for fiscal 2007 increased 2.0% when compared to the same 52-week period of fiscal 2006.
Overall, total sales for the 13-week fourth quarter of fiscal 2007 decreased 7.5% to $133.9 million from $144.7 million for the 14-week fourth quarter of fiscal 2006. The additional week in fiscal 2006 generated sales of approximately $6.7 million. For the 52 weeks in fiscal 2007, total sales decreased $1.3 million, or less than 1%, to $464.1 million from $465.4
million for the 53 weeks in fiscal 2006.
Income from continuing operations for the fourth quarter of fiscal 2007 was $1.3 million, or $0.03 per diluted share, compared to $8.4 million, or $0.19 per diluted share, for the fourth quarter of fiscal 2006, after excluding a tax benefit of $30.5 million, or $0.64 per diluted share, (as described in the non-GAAP table below) related to the reversal of the Company's valuation allowance against its deferred tax assets.
Primary factors which resulted in the earnings decrease in the fourth
quarter of fiscal 2007 include:
- an acceleration of writing off and clearing Rochester merchandise product which is no longer relevant to its updated merchandise strategy, together with other related inventory adjustments, for an aggregate inventory write-down of approximately $6.1 million, or $0.08 per diluted share.
Overall, net income, on a GAAP basis, was $0.6 million, or $0.02 per diluted share, for the fourth quarter of fiscal 2007 as compared to $38.7 million, or $0.83 per diluted share, for the fourth quarter of fiscal 2006.
For fiscal 2007, net income was $0.4 million, or $0.01 per diluted share, as compared to $42.6 million, or $0.98 per diluted share, for fiscal 2006. Included in the fiscal 2007 results is a loss from discontinued operations of $0.08 per diluted share related to the closure and sale of the Jared M. business. Also, included in the fiscal 2006 results is a tax benefit of $30.5 million, or $0.64 per diluted share, related to the reversal of the Company's valuation allowance against its deferred tax assets.
"During the most recent quarter, the environment for men's apparel was extremely challenging and Casual Male was affected by a reduction in store traffic of 7.5%," said David Levin, President and CEO of Casual Male. "On a positive note, the other key sales metrics, such as customer conversion and average ticket, were very positive, suggesting to us that when our guests are coming to our stores, they are encountering a very positive shopping experience."