Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Casual Male Retail Group — Investor Presentation (September 2005)
38 slides from Destination Xl's investor presentation, Sep 15, 2005
Slide 1: Rochester Big & Tall
ROCHESTER (= BIG & TALL SJ’
Slide 2: The CMRG Story
The CMRG Story Undisputed leader within a $6 billion men’s big & tall apparel arena Dominant player within specialty big & tall store with 65% market share Increased opportunity to consolidate a fragmented market by focused merchandising initiatives and advanced marketing techniques Focused our grow
Slide 3: Business Overview
Business Overview Casual Male Big & Tall and Rochester Clothing are the nation’s largest specialty retailers of big & tall clothing with 526 stores in 44 states and UK A highly fragmented marketplace combined with rapidly growing big & tall population creates opportunity for store growth to 600-700
Slide 4: Fall 2005
Fall 2005 ROCHESTER BIG & TALL
Slide 5: Rochester Brands
Rochester Brands claiborne tt BURBERRY CANALI —+—$< HE KENNETH COLE new york > VERSACE ( Cloth by Ermenegildo Zegna RALPH i LAUREN ©
Slide 6: Benefits to CMRG
Benefits to CMRG Combined entities give CMRG 65% market share of specialty retail sector Not a turn around – accretive to earnings in year one Senior management continues with incentive contracts Synergies will increase gross margin, reduce overhead costs (warehouse, administration, insurance, etc.)
Slide 7: Rochester Big & Tall Transaction
Rochester Big & Tall Transaction 21 U.S. stores; 1 in London Total revenue $65.0M Audited EBIDTA of $3.3M Potential for an additional 3 million dollar savings through integration 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.
Slide 8: Fall 2005 Casual Male catalog
fall 2005 exclusive — 626 Blue! Nyne shirt sold on page 39 Casual Male BIG & TALL 1.800.767.0319 casualmale.com
Slide 9: Comp Store Trend
Comp Store Trend 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 9.2% Launch of George Foreman collection and TV campaign 4.8% 2.4% Stores change to lifestyle presentation 1.6% 2.0% 2.3% 2.5% -1.1% -2.3% -5.0%
Slide 10: Internet Sales by Month
Internet Sales by Month 2002 - $3,357,447 2003 - $6,229,617 +46.1% 2004 - $9,874,481 +194.1% $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 11: Store Catalog Sales
Store Catalog Sales $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- $7,053,300 $7,283,100 +3.3% $7,968,900 +9.7% $8,814,100 +12.0% FYE02 FYE03 FYE04 FYE05 * % gains over FYE02
Slide 12: Multi-Channel
Multi-Channel Store 100% 80% 60% 40% 20% 0% 2.9% 7.4% online catalog Catalog 100% 80% 60% 40% 20% 0% 46.6% 18.6% store online Online 100% 80% 60% 40% 20% 0% 51.1% 32.1% store catalog
Slide 13: Customer Sales by Channel
Customer Sales by Channel Retail only 100 Catalog Only 123 E-commerce Only 104 Retail & Catalog 276 Retail & E-commerce 290 Catalog & E-commerce 286 Retail & Catalog & E-commerce 455 * Indexed to retail only shoppers
Slide 14: Introducing our new Fall 2005 collection
Introducing our new Fall 2005 collection
Slide 15: Brand Strategy
Brand Strategy 2002 IMU (initial mark-up) under 65% Levis/Dockers & Harbor Bay/Menswear 2005 IMU now over 67% George Foreman, Levis/Dockers, Reebok, Polo Jeans, Nautica Jeans, Izod, Perry Ellis, Calvin Klein, Geoffrey Beene, Henry Grethel, Harbor Bay Result – Better sourcing (reduction of # of vendo
Slide 16: Page retail catalog
52 page retail catalog Mailing Aug, Nov, & Dec 500,000 pieces per mailing
Slide 17: Introducing Blue Vintage Surplus
Introducing 626 Blue® Vintage Surplus
Slide 18: Blue today's classics
626 Blue® today’s classics
Slide 19: Blue new classic options
626 Blue® new classic options
Slide 20: 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 products
Slide 21: Guaranteed In-Stock Program
Guaranteed In-stock Program 7 key items Guaranteed In Stock Program – Bottoms 49 sizes, delivery in 5 working days or FREE August 10 chain rollout
Slide 22: Your Size In-Stock-Guaranteed Program
“Your Size In-Stock-Guaranteed” Program
Slide 23: Merchandise in the In-Stock-Guaranteed Program
Merchandise included in the “Your Size In-Stock-Guaranteed” Program
Slide 24: New Design Casual Male XL
New Design CASUAL MALE XL
Slide 25: Big & Tall Casual Male
Big & Tall CASUAL MALE CASUAL MALE XL
Slide 26: Objectives
Objectives Change the consumer perception of Casual Male to increase awareness of brands, sizes and comfort carried in all channels and appeal to the younger, smaller and taller B&T consumers. Re-engineer the look and feel of the Casual Male brand in all communications including in-store experience,
Slide 27: Developmental Markets
Developmental Markets DMA Population Market Rank Anchor Stores Outlet Stores Phoenix, AZ 2017.3 15 5 1 Columbus, OH 630.1 34 4 2 Grand Rapids, MI 683.5 38 3 0 Indianapolis, IN 589.6 25 6 1 Rochester, NY 392.6 74 4 0 San Antonio, TX 643.6 37 4 0 Total: 4956.7 26 4
Slide 28: Effected Change
Effected Change Exterior store Interior of store, visual presentation, signage, POS package Bags All communications Direct mail Email Catalog version Website New Private label credit card Associate training
Slide 29: You Name It, We've Got It
YOU NAME IT WE’VE got it IN BIG & TALL SIZES
Slide 30: Price Signage
Price Signage 0, Die setecteo styles HARBOR BAY shirts
Slide 31: Fall 05 Catalog
FALL05 You name it, we’ve got it — in big & tall sizes axis calvin klein cutter & buck dockers george forman izod nautica jeans co. polo jeans co. reebok Catalog Warming up to the cold weather. casualmale.com 1.800.767.0319
Slide 32: Sale Flyer
Sale Flyer SALE 30"- 60“off > 3 SUMMER | FALL il SUTSALE
Slide 33: casualmale.com
casualmale.com http://www.casualmale.com/ Google CASUAL MALE XL OUR STORY SHOP BY CATALOG STORES WISH LIST MY ACCOUNT SHOPPING BAG BIG & TALL FALL05 You name it, we’ve got it. REQUEST CATALOG GIFT CERTIFICATES CM REWARDS ABOUT US CONTACT US HELP YOUR PRIVACY RIGHTS EMPLOYMENT INVESTOR RELATIONS All
Slide 34: Bags
Bags CASUAL MALE XL casualmale.com
Slide 35: Gift Card
Gift Card A GIFT FOR YOU TO: FROM: GIFTCARD CASUAL MALE XL GIFTCARD CASUAL MALE XL
Slide 36: Private Label Charge Card
Private Label Charge CASUAL MALE XL 5678 9123 4567 8912 Michael B. Maheropolous
Slide 37: Forward-Looking Statement
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 coul
Slide 38: Casual Male Retail Group
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 (September 2005) on 6ix