Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Casual Male Retail Group — Investor Presentation (June 2006)
40 slides from Destination Xl's investor presentation, Jun 7, 2006
Slide 1: Casual Male Retail Group, Inc.
CASUALIMALE retail group inc. CRSUAL|/MALE ROCHESTER Hae se) TAL t
Slide 2: '06 & '07 Initiatives
’06 & ’07 Initiatives • Redefine Casual Male image to increase market share • Store growth – expansion of Rochester Clothing • Jared M. Acquisition • Continued accelerated growth of internet and catalog • Gross margin improvement
Slide 3: Redefine Casual Male Image
Redefine Casual Male Image
Slide 4: Market Share Size Opportunity
Market Share Size Opportunity Casual Male Sales by Size $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Waist Size Data based on ’04 sales of Casual Pants, Dress Pants and Jeans
Slide 5: Sale $
Sale $
Slide 6: Customer Research
Customer Research Least favorite aspect of clothing shopping was “difficulty finding items in my size” – They were shopping at “the end of the rack” – Stigma with “big and tall” store – “big and tall” stores were consistently referred to as places where “fat guys” shop Current image associated with
Slide 7: 50% of customers refer to Casual Male as the "Big & Tall" store
50% of customers refer to Casual Male as the “Big & Tall” store
Slide 8: Casual Male
CASUAL MALE
Slide 9: Before
Before
Slide 10: After
After
Slide 11: Slide 11
Slide 12: Slide 12
Slide 13: Brands carried at Rochester
claiborne es 5 5 = BURBERRY, CANALI —+—— HH KENNETH COLE new york Cloth by Ermenegildo Zegna Rapa fy Latren
Slide 14: Rochester vs. Casual Male
Rochester vs. Casual Male Metrics Average sales per store $2.3M vs CM $650,000 Average transaction $400 vs CM $75 Average store sq. footage 5,000-6,000 sq. ft. vs CM 3,500 sq. ft. Average income of customer $100,000+ vs CM $71,000 Cost to open new store $100 sq. ft. vs CM $36 sq. ft. Inventory neede
Slide 15: Rochester Overview
Rochester Overview • Major growth for next 5 years. We will be in expanding Rochester from 24 stores to 40 more stores Rochester * 1 London, United Kingdom
Slide 16: Rochester Big & Tall
ROGHESRERSBIGISSVALE ROGHESTER = BIG &MALL=
Slide 17: Slide 17
Slide 18: Jared M. Acquisition
Jared M. Acquisition
Slide 19: Jared M. Acquisition
Jared M. Acquisition • Custom clothing continues to be growing in the higher end men’s business • Rochester is underdeveloped in custom clothing (3.5% of sales) • Jared M. $3.0M company catering to professional athletes • Utilized CMRG infrastructure for multi-channeled opportunities • Spring ’07 la
Slide 20: Jared M.
Jared M.
Slide 21: Continued accelerated growth of internet and catalog
Continued accelerated growth of internet and catalog
Slide 22: Comp Store Trend
Comp Store Trend Stores change to lifestyle presentation Launch of George Foreman collection and TV campaign -5.0% -2.3% -1.1% 2.4% 9.2% 4.8% 1.6% 2.0% 2.3% 2.5% 3.70% 7.90% 5.40% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 23: CM 2005 Internet Sales by Month
CM 2005 Internet Sales by Month $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 $2,800,000 $3,000,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2002 - $3,357,447 2003 - $6,229,617 2004 - $9,874,481 2005 -
Slide 24: Customer Sales by Channel
Customer Sales by Channel * Indexed to retail only shoppers Retail only Catalog Only E-commerce Only Retail & Catalog Retail & E- commerce Catalog & E- commerce Retail & Catalog & E- commerce
Slide 25: Father's Day
FATHER’S DAY CASUAL!IMALE Preferred Guest Days: Thursday, June 8th thru Sunday, June 11th 4 days only! extra 10% off coupon on back! Sale Thursday, June th thru Father's Day, Sunday, June 18th ‘shop by phone shop over 490 stores shoponting [iM 1.900.767.0319 ‘all 1.866 think, casualmalexL-com
Slide 26: Summer catalog
SUMMER 21 CASUALIMALE Casual Male XL, the leader in big & tall clothing, now available by catalog or online. by catalog or online {98 825 saa west. sears comn/cesualmaleXL
Slide 27: Sears.com Big & Tall page
Order Status | Customer Service | My Profile “G@ Recently Viewed Cart - 0 items (40.00 Sears (Appliances Auto] Baby | Clothing | Electronics & Computers | Fitness & Sports | —= For the Home | Health & Wellnes4 Jewelry = Lawn & Garden | Shoes Tools | Toys & Games Search in| Clathing = for] Sears Outl
Slide 28: Good life. Great price.
Good life. Great price.
Slide 29: Gross Margin Improvements
Gross Margin Improvements • Inventory management • Direct sourcing • Building proprietary brands
Slide 30: Gross Margin Opportunity
Gross Margin Opportunity • Core vs. seasonal/fashion – core year round basic stock items (5 pocket jean, pique polo, pocket tee, underwear, etc.) • Implementation of E3 (replenishment system) determined that we were 25% out of stocks on core items – demand exceeded supply – Better margins on core pr
Slide 31: Guaranteed In-stock Program
Guaranteed In-stock Program • 7 key items • GIS Program – Bottoms 49 sizes, delivery in 5 working days or FREE • 8/21 launch • Sold 449,405 units • Units 26% increase • 4,623 units fulfilled through catalog • 13 pieces of free items given away
Slide 32: Direct Sourcing
Direct Sourcing • Direct Sourcing of goods through Li & Fung, as agent beginning in 2006 • New Department created, hiring of industry veteran • Potential for 40% of Casual Male Inventory to go Direct • Cost saving of up to 15% • Better sourcing (reduction of # of Vendors) • Rochester has very little
Slide 33: Comfort
Comfort HARBOR BAY 626 BLUE Vintage Vintage Surplus SYNRGY
Slide 34: Casual Male catalog page
W casuatimaceyy 07s rely on the qualy and function ‘of basic items designed for your ifestyle exter Pe Pe Fautbog intent yg wth seaptham ad serene Dato ng lr ny. ew Mack ro ee este, ‘er he, cc hob ize TALL OUT Bi 1, rn Pipa $24 (5219 coche ree actor Ba Mectaek a Cemec Thcanftt 0 ton and sat Sotiaeoc
Slide 35: » eae is
» eae is ee
Slide 36: Blue
626 BLUE
Slide 37: Collection will consist of Wovens, Casual Pant, and Knits
Collection will consist of Wovens, Casual Pant, and Knits Assortment will reflect items/attitude and overall look of successful contemporary brands such as George Foreman Signature, Perry Ellis, I.N.C., etc.
Slide 38: Slide 38
Slide 39: Forward-Looking Statement
Any remarks that we make today about future expectations, plans and prospects for Casual Male Retail Group, Inc. which are not historical facts, are forward-looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause the Company’s actu
Slide 40: Casual Male Retail Group Turnpike Street
Casual Male Retail Group 555 Turnpike Street Canton, MA 02021 (781) 828-9300 x 2004 jeffunger@usa.net clinsky@cmal.com
Casual Male Retail Group — Investor Presentation (June 2006) on 6ix