The fourth quarter was tough for Casual Male Retail Group Inc.
The Canton, Mass.-based retailer on Thursday said the “sluggish economy and the unseasonable winter weather” resulted in a negative traffic trend and prompted it to revise its guidance for full-year earnings per share, as well as expectations for sales for the year.
For the 2011 fiscal year, it now forecasts diluted EPS in the range of 28 to 29 cents versus prior guidance of 35 to 38 cents.
David Levin, president and chief executive officer, said, “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.”
The company said that comparable-store sales for the year rose 2.1 percent, but it now expects sales for fiscal 2011 to be $397.7 million. That’s on the low end of previous guidance of between $397.5 million and $402.5 million. In addition, Casual Male expects the gross margin rate for the year to be between 46.1 percent and 46.2 percent, down from earlier forecasts of between 46.9 percent and 47.3 percent.
The company plans to report fourth-quarter and full-year results on March 15. Levin declined to provide further details about the business until that time.