Improvements in same-store sales and gross margin helped Casual Male Retail Group Inc. turn a third-quarter profit versus a year-ago loss.
In the three months ended Oct. 30, the Canton, Mass.-based operator of big & tall men’s wear stores generated net income of $289,000, or 1 cent a diluted share. The performance matched analysts’ expectations, as compiled by Yahoo Finance, and came against a year-ago net loss of $1.4 million, or 3 cents.
Sales for the quarter ticked up 1.4 percent, to $89.9 million from $88.7 million, and gained 3 percent on a same-store basis. Gross margin rose 300 basis points to 45.7 percent of sales.
“We continue to be pleased with our customers’ response to the DXL stores opened over the past two quarters,” said David Levin, president and chief executive officer. “We are currently planning for improved business trends in 2011, including opening between eight and 12 more DXL stores in locations throughout the U.S.”
Destination XL, which melds the mix from the company’s Casual Male, Rochester and Shoes XL operations under one roof, made its debut this summer. The company said Thursday that, based on the performance so far, it plans to have between 75 and 100 DXL stores in operation by fiscal 2015. A DXL Web site is planned for the first quarter of fiscal 2011.
The company currently operates 445 Casual Male XL stores, four DXL units and 17 Rochester stores. It expects to reduce its store count to about 350 by 2015 but, according to Levin, square footage will remain about the same.
Thomas Filandro, retail analyst with Susquehanna Financial Group, called Casual Male “a formidable operator. And the DXL format is pretty impressive. It has an upscale feel, offers more sku’s [stockkeeping units] and has a lifestyle feel. They’re definitely moving in the right direction.”
The analyst feels Casual Male’s momentum will serve it well as it fights off a new challenge from J.C. Penney Co. Inc., which recently unveiled plans for The Foundry Big & Tall Supply Co., which will launch its Web site in April, followed by 10 stores in May, with plans for 300 units within five years.
Filandro said the men’s big & tall market is so complex, there’s not really room for a second player. “It takes time to build critical client mass. If J.C. Penney were doing this three years ago, they could be a competitor, but DXL is so unique and draws such a wide audience, I don’t think a competitor can come in and take share.”
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye