Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Casual Male Retail Group — Investor Presentation (April 2009)
31 slides from Destination Xl's investor presentation, Apr 22, 2009
Slide 1: Casual Male Retail Group, Inc.
CASUAL|MALE retail group inc.
Slide 2: Big & Tall Market
Big & Tall Market Market defined as: big = waist size between 40” and 70” tall = height over 6’2” Big and tall men account for approximately 11% of the male population. Big and tall market size is approximately $6 billion and growing at almost twice the rate of the regular size men’s apparel market.
Slide 3: Market is growing as a percent to total menswear sales
Market is growing as a percent to total menswear sales Obesity Trends* Among U.S. Adults (*BMI 30, or about 30 lbs overweight) No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% 30% 1985 2005 2000 1995 1990 2007 Source: CDC
Slide 4: 2009 Goals
2009 Goals Optimize Free Cash Flow projected $15 million Maximize liquidity of our Revolver and paying down balance to $25- $30 million at year end Managing inventory levels and reducing by 10% or $10 million Reducing SGA by 9% to $162.5 million Cutting Capital Expenditures to $5 million Improving M
Slide 5: Selected Balance Sheet Information
Selected Balance Sheet Information 17.3 12.5 7.6 Fixed Term Loan 41.0 38.7 25-30 Borrowing Under Revolver 117.8 98.6 88.6 Inventory 2007 2008 2009 Projected
Slide 6: Selected Income Statement Information
Selected Income Statement Information 33.9 34.1 26.6 Marketing Expense 4.3 3.0 1.5 Interest Expense 21.4 12.6 5.0 Capital Expenditure 44.4% 42.7% 45.2% Gross Margin 178.1 178.1 162.5 SGA 464.1 444.2 400.0 Sales 2007 2008 2009 Projected
Slide 7: Cash Flow Analysis
Cash Flow Analysis Generate Free Cash Flow in the amount of $15 million with total sales down 10% Cash Flow is Neutral with total sales decline in the mid to high double digits • •
Slide 8: Casual Male
CASUAL! MALE ROCHESTER CASUALIMALE CLOTHING BBM CASUAL MALE XL Se
Slide 9: Casual Male Stores
Casual Male Stores Casual Male XL is the nation’s largest specialty retailer of big & tall clothing with 401 full price stores and 66 outlet stores in 47 states CT-10 DE-3 RI-1 MA-13 MD-13 NH-3 NJ-20 VT-1 4 2 10 55 5 29 10 4 23 12 3 5 5 2 20 8 10 2 11 1 4 2 6 33 19 3 5 25 5 1 8 39 13 7 8 1 1 1 3 Lon
Slide 10: Rochester
Rochester Targets the higher income consumer within the big and tall market $100,000 per year average salary 21 store locations in downtown major metropolitan areas and upscale suburbs Average store size: 8,192 square ft Average sales / square foot: $256 Stores carry higher-end designer product Aver
Slide 11: Casual Male Rochester
CASUAL MALE 1 ROCHESTER
Slide 12: Concept
Concept The Hybrid store, as conceived, is a 6,000 square ft. combination Casual Male, Rochester store featuring the lifestyle sportswear apparel wardrobe needs offered by Casual Male, but with an added lifestyle of higher end fashion apparel offered by Rochester and an enhanced Clothing section fea
Slide 13: Hybrids
Hybrids Eliminated duplicative accessories/furnishings between combined Rochester and Casual Male. Good, better, best tiered offering with most of best coming from Rochester’s good and better assortment. Edited assortment for brands carried in both companies i.e. Polo, CK Jeans. Assortment will be m
Slide 14: Operational Models
OPERATIONAL MODELS Tailoring Service Pricing Average Unit Retail Square Footage Full Service Tailoring Full Service Tailoring No Tailoring Service Offered Leaning Towards Full Service Full Service Semi Self Service Mid-High Moderate High End Moderate $45.00 $74.90 $32.10 9,045 8,069 3,534 Hybrid Sto
Slide 15: Oakbrook, IL - Existing Locations
OAKBROOK, IL • Existing Locations
Slide 16: Oakbrook, IL - Hybrid Store Front
OAKBROOK, IL • Hybrid Store Front
Slide 17: Typical Hybrid Store Layout Proposal
TYPICAL HYBRID STORE LAYOUT PROPOSAL
Slide 18: Typical Hybrid Store Shop Identity
TYPICAL HYBRID STORE SHOP IDENTITY LIGHT WOOD vs. DARK WOOD
Slide 19: Comp Trend
Comp Trend 4.4% 4.6% 9.0% 2.0% -2.0% 0.3% -5.3% -9.3% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 2004 2005 2006 2007 Q1 Q2 Q3 Q4 2008
Slide 20: CM Sales Metrics By Quarter
CM Sales Metrics By Quarter -12.00% -10.00% -8.00% -6.00% -4.00% -2.00% 0.00% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Traffic Comp Sales -10.00% -5.00% 0.00% 5.00% 10.00% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Conversion DPT
Slide 21: Our Direct to Consumer Brands
Our Direct to Consumer Brands CasualmaleXL.com Rochesterclothing.com Livingxl.com BTDirect.com ShoesXL.com
Slide 22: CMRG Internet Sales by Year
CMRG Internet Sales by Year $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2002 2003 2004 2005 2006 2007 2008
Slide 23: CASUALI|MALE
CASUALI|MALE WARDROBE: ater a buy all 4 pieces i \ bettors a ¥ 5 ALL SHOES ¥ BUY ONE, | ONE visit one of over © | bes : ae stres ticnelgall = : y .N ‘ a
Slide 24: Rochester Clothing
ROCHESTER CLOTHING J
Slide 25: rLE. PRICED RIGHT.
rLE. PRICED RIGHT. NEW ARRIVALS! 3114/80
Slide 26: Unique, in >t Hall and pl
Unique, in >t Hall and pl EVINGAL a balk (G--d)) ad BATH SHEET te as na SALE & CLEARANCE BLOWOU! UP TO 90% OFF!
Slide 27: Dozens of
Dozens of NEW ARRIVALS $ lew our NEW SPRING extales ontine! > Sign up to raceive our LATEST catalog
Slide 28: lel
‘|@ «| lel | éa @)
Slide 29: Obesity in Europe
Obesity in Europe 135 million adults are affected by obesity Many countries more than half the adult population is overweight and 30% defined as clinically obese In most European countries 1 in 4 children are obese which is over 80 million children • • •
Slide 30: Casual Male XL Loyalty Program Rewards
Casual Male XL Loyalty Program Rewards Current Program Performance: 2.2MM customers have been enrolled to date Of the 1.43MM retail customers, 1.18 or 83% are enrolled 83% of new customers captured in POS are being enrolled 88% of transactions involved an XL Rewards member Loyalty members average sp
Slide 31: Forward Looking Statements
Forward Looking Statements: This presentation contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially fro
Casual Male Retail Group — Investor Presentation (April 2009) on 6ix