Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Casual Male Retail Group — Investor Presentation (January 2010)
33 slides from Destination Xl's investor presentation, Jan 11, 2010
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: Selected Income Statement Information
Selected Income Statement Information $4.3m $3.0m $1.0m Interest Expense $33.9m $34.1m $20.0m Marketing Expense $-9.6m $7.6m $15.0m - $20.0m Free Cash Flow 44.4% 42.7% 43.7% - 44.2% Gross Margin $178.1m $178.1m $152.0m SG&A $464.1m $444.2m -11.0% to -12.0% Sales 2007 2008 2009 Projected • Free Cash
Slide 5: Selected Balance Sheet Information
Selected Balance Sheet Information $17.3m $12.5m $7.0 - $8.0m Fixed Term Loan $41.0m $38.7m $7.5m -$10.0m Borrowing Under Revolver $117.8m $98.6m $88.6m Inventory 2007 2008 2009 Projected • Projected Borrowing Under Revolver includes the impact from the September 2009 sale of stock from a shelf regi
Slide 6: Casual Male brands and stores
CASUAL! MALE ROCHESTER CASUALIMALE CLOTHING BBM CASUAL MALE XL Se
Slide 7: Slide 7
Slide 8: Rochester targets the higher income consumer within the big and tall market
Rochester Targets the higher income consumer within the big and tall market $100,000 per year average salary 20 store locations in downtown major metropolitan areas and upscale suburbs Average store size: 8,156 square ft Average sales / square foot: $256 Stores carry higher-end designer product Aver
Slide 9: Casual Male Rochester
CASUAL MALE 1 ROCHESTER
Slide 10: Concept: Hybrid store
Concept The Hybrid store, as conceived, is a 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 featuring the qualit
Slide 11: Oakbrook, IL Hybrid Store Front
OAKBROOK, IL • Hybrid Store Front
Slide 12: Hybrid Store Customers
Hybrid Store Customers Prior Casual Male XL only customers are now spending 16% of their purchases on Rochester merchandise. Customers who previously shopped both Casual Male XL and Rochester Clothing are shopping more frequently. Prior Rochester only customers that are now shopping at a Hybrid stor
Slide 13: Destination XL Superstore concept
Destination XL TM – Superstore concept Destination XL TM DXL TM
Slide 14: DXL Superstore – Customer Research
DXL TM Superstore – Customer Research Through customer research conducted in 2009, customers expressed the need for more apparel choices within one store concept supporting the concept of Destination XL. The Destination XL store concept received positive feedback from focus groups due to its compreh
Slide 15: DXL Store Concept
DXL TM Store Concept DXL Store will range from 10,000 SF – 12,000 SF as compared to the average Casual Male Store of 3,500 SF DXL Store will combine all products at CMRG including Casual Male XL, Rochester Clothing, B&T Factory Direct, Living XL, and Shoes XL Expanding the assortment will offer cons
Slide 16: DXL Store Concept
DXL TM Store Concept With the re-branding of Casual Male Big and Tall to Casual Male XL, we experienced increased traffic and new customers. We anticipate the same results with the new DXL logo and store front, attracting the smaller big and tall customer (42” – 44” waists) CMRG has a plan to open 5
Slide 17: DXL Schaumburg, IL
DXL TM Schaumburg, IL Moving our current 5,000-square foot Casual Male XL store less than a mile down the road to a 12,000-square foot DXL store. We will roll in the two stores closest to Schaumburg, Bloomingdale and Niles 11.2 and 11.4 miles away respectively, with combined sales of close to one mi
Slide 18: Schaumburg, IL
9451 Schaumburg, IL 9183 Niles, IL 11.4 miles 9512 Bloomingdale, IL 11.2 miles DXL Schaumburg, IL 0.9 miles
Slide 19: Invitation: Identity Application
Invitation: Identity Application SAMPLE ONLY – NOT FINAL
Slide 20: Slide 20
Slide 21: Club: Suits
Club: Suits SAMPLE ONLY – NOT FINAL
Slide 22: XL = a -
XL = a - SHIRTS ACTIVEWEAR” | “SUITS” | ACCESSORIES” | FO ANOS” |” SALE SOK Tax’ CLASSICS: //FRom OUR GIFT CARDS FIT EVERY TIME! GET READY FOR Suuer GREAT LOOKS FOR EVERY OCCASSION.
Slide 23: Our Direct to Consumer Brands
Our Direct to Consumer Brands CasualmaleXL.com Rochesterclothing.com Livingxl.com BTDirect.com ShoesXL.com
Slide 24: 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 25: Casual Male Big & Tall
CASUAL!IMALE Bie TALL CASUAL!IMALE 09 over. new items inside ro Xtra charge for Bigs zes! visit one of over Stores nationwide
Slide 26: Rochester Clothing
ROCHESTER CLOTHING
Slide 27: Gifts Under $35
GIFTS UNDER $35
Slide 28: Slide 28
Slide 29: Shoes XL
SHOES XL
Slide 30: Europe
Europe United Kingdom France Italy Netherlands Spain Germany
Slide 31: Casual Male XL Program Rewards
Casual Male XL Program Rewards 2.6MM customers enrolled to date 85% of all Casual Male XL customers are enrolled Loyalty member’s average spend per transaction is 26% or $18 higher than non-members 90% of all transactions involve a loyalty member • • • •
Slide 32: Prestige XL Program 2009
Prestige XL Program 2009 Launched a new level of the XL loyalty program in 2009 to 43,000 of Casual Male XL’s top customers. Benefits included double point promotions, presale opportunities as well as special recognition on all marketing collateral. Prestige customers spent almost $600 on clothing p
Slide 33: 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 (January 2010) on 6ix