Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Casual Male Retail Group — Investor Presentation (September 2009)
30 slides from Destination Xl's investor presentation, Sep 15, 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 Sales Decrease of 10% - 12% Generate Free Cash Flow between $20.0m - $25.0m Maximize Availability under the Credit Facility and pay down bank debt to $14.5m - $18.0m Reduce Inventory Levels by 10.0% or $10.0m Reduce SG&A Expense by 15% to $151.0m Limit Capital Expenditures to $5.0m Improv
Slide 5: Sale of Common Stock
Sale of Common Stock On September 2, we sold 4,950,000 shares of common stock to institutional investors. Sale price of $2.75/share raised $13.6m of capital. Transaction costs of approximately $1.0m results in Net Proceeds of approximately $12.6m. Funds will be used to pay down revolving debt and us
Slide 6: 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 reg
Slide 7: 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 $20.0m - $25.0m Free Cash Flow 44.4% 42.7% 43.7% – 44.2% Gross Margin $178.1m $178.1m $151.0m SG&A $464.1m $444.2m -10.0% to -12.0% Sales 2007 2008 2009 Projected • Free Cash
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 65 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 22 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 11: Casual Male Rochester
CASUAL MALE 1 ROCHESTER
Slide 12: Concept
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 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 8,156 3,515 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: CMRG Comparable Sales Trend
CMRG Comparable Sales Trend -0.15 -0.1 -0.05 0 0.05 0.1 2005 2006 2007 2008 Q1 Q2 2009
Slide 20: Our Direct to Consumer Brands
Our Direct to Consumer Brands CasualmaleXL.com Rochesterclothing.com Livingxl.com BTDirect.com ShoesXL.com
Slide 21: 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 22: Casual Male website
CASUAL!MALE CASUAL!MALEY FREE GROUND SHIPPING" 334 = Stach tf... OCCASION i purchase . ag life’s better when Tt visit @he of over 470 ‘stores nationwide CASUAL MALE CASUAL MALE XL. ROCHESTER CLOTHING SHOES XL LIVING XL_ B&T FACTORY DIRECT
Slide 23: Rochester Clothing website
ROCHESTER CLOTHING -% View Om New. CONVERS! | Ganoc onus iii NW MARKDOWNs, JOST s1i ‘Shop for designer ‘to wear now and later CASUAL MALE CASUAL MALE XL. ROCHESTER CLOTHING SHOES XL LIVING XL_ B&T FACTORY DIRECT
Slide 24: Buy More Save More promotion
[BUY@MORETSAVE|MORE!) comceer< ‘ize ae ae NO RISK! FREE RETURN SHIPPING! save POLORAIPH LATE BE% FE pa CASUAL MALE CASUAL MALE XL. ROCHESTER CLOTHING SHOES XL LIVING XL_ B&T FACTORY DIRECT
Slide 25: Living XL
B procucts oka end plus-sbed man Gnd omen, We tt yours LINEUP Sturdy Canopy and Portable Chairs ‘AS LOW AS $49.95, Relax... we make eve C Vbit LivingXL.com
Slide 26: ShoesXL.com
Sonal shoesXL.com for aver 400 style NO RISK! FREE RETURN SHIPPING! Timbertans! 4S our satistaction is 100% guaranteed! Fall 09 field. oui Ws new! It's here! ‘Your complete shoe source for the season shea! —___— = -amplete shoe source for the season ahead CASUAL MALE CASUAL MALE XL. ROCHESTER CLOTHI
Slide 27: “2eTrere ret
Ma “2eTrere ret pblck your colour! Th About Casual Male ng colours are h = Customer Service +44 569 569 569
Slide 28: 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 29: 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 30: 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 (September 2009) on 6ix