Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Casual Male Retail Group — Investor Presentation (July 2005)
29 slides from Destination Xl's investor presentation, Jul 12, 2005
Slide 1: July 2005
July 2005
Slide 2: The CMRG Story
The CMRG Story Undisputed leader within a $6 billion men’s specialty big & tall apparel arena Dominant player within specialty big & tall space with 65% market share Increased opportunity to consolidate a fragmented market by focused merchandising initiatives and advanced marketing techniques Focuse
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: Spring Rochester Big & Tall catalog
Spring ROCHESTER Big & Tall Don’t miss our Cutter & Buck insert inside Polo Ralph Lamen Pan Stripe Mesh Poloroide on Page 3.
Slide 5: 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 an incentive contracts Synergies will increase gross margin, reduce overhead costs (warehouse, administration, insurance, et
Slide 6: Rochester Big & Tall Transaction
Rochester Big & Tall Transaction 21 U.S. stores; 1 in London Total revenue $65.0M Average sales per store $2.3M vs CM $650,000 Average transaction $400 vs CM $75 Average store sq. footage 7,500sq. ft. vs CM 3,500 sq. ft Average income of customer $100,000+ vs CM $71,000 Audited EBIDTA of $3.3M Poten
Slide 7: Rochester Brands
Rochester Brands Claiborne CANALI BURBERRY KENNETH COLE new york VERSACE RALPH LAUREN DKNY Cloth by Ermenegildo Zegna
Slide 8: Fall catalog
Fall Exclusive 626 Blue! Nyne shirt on page 39 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% -1.0% -5.0% -2.3% -1.1% 2.4% 9.2% 4.8% 1.6% 2.0% 2.3% Launch of George Foreman collection and TV campaign Stores change to lifestyle presentation Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 10: 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 11: Internet Sales by Month
Internet Sales by Month $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 2002—$3,357,447 2003—$6,229,617 +46.1% 2004—$9,874,481 +194.1%
Slide 12: 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 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: Summer 2005
summer 2005 polo ralph lauren nautioa jeans co.cutter & buck reebock izod levis dockers george foreman polo jeans co. nautica
Slide 15: Fall 2005 catalog
Fall 2005 You name it. we’ve got it brands you want. styles one you like. sizes that fit 52 page retail catalog Mailing Aug, Nov, & Dec 500,000 pieces per mailing
Slide 16: CRM Overview
CRM Overview What is it? Central depository in-house database of CM customer info which both collects and deploys customer information What’s the benefit? Customer data including sales, contact info, preferences, etc is updated daily rather than monthly Marketing will have quicker access to data inc
Slide 17: In-store Opportunities
In-store Opportunities Customer lookup- will be able to view a customer’s detailed purchase history and transactional data by channel Attributes- will be able to view customer provided information: size, favorite color, brand, sports team, etc. Triggers- reminders on POS screen based on attributes.
Slide 18: 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 19: Guaranteed In-stock Program
Guaranteed In-stock Program 7 key items Tested 20 stores in 4th quarter Guaranteed In Stock Program –Bottoms 49 sizes, delivery in 5 working days or FREE Fall launch We’ve got it. You’ll find your size or it’s free.
Slide 20: Guaranteed in-stock promotion
FREE $10 gift card 25% off entire stock of athletic footwear Reebok Now Babree Slechers Choose from a greet and action of your favourite styles. Sdel 11-18 W Reg.$eo-$jo Sale $37 50-$52.50 we’ve got it. Find your size or it’s free: YOUR SIZE IN-STOCK All featured items guaranteed. IN-STORE FOR YOU E
Slide 21: Great sale prices
Great sale prices on your favourites! Stock up now on everyday basics. In –stock or it’s free: Guaranteed! sale 21 sale 39 sale 39 sale 16 sale sale 34
Slide 22: Customer Lifestyles
Customer Lifestyles Joe Jock Age 18-50 Functional Active Cool Jay Age 18-35 Urban Laid Back Kyle Age 18-35 Contemporary Mainstream Mike Age 30-50 Traditional Newman Age 50+ Older Traditional Professor Paul Age 45+ Dress & Designer Gift Giver Age 25+ All Classifications
Slide 23: 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 24: Introducing 626 Blue
Introducing Not only will you discover the classic character of our new brand. 626 BLUE, but you’ll enjoy shopping our entire selection of quality name brands, designed to fit your size and your style. Polo Jeans Co. Izod Polo Ralph Lauren Nautica NYNE Calvin klein Jeans Harbor Bay Geoffrey Beene Co
Slide 25: Introducing today's classics
Introducing today’s classics Define your style with the attitude reflected on vintage apparel! 4. casualmale.com Order anytime, toll-free: 1.800.767.0319
Slide 26: Today's new classic options
today’s new classic options Discover your favorites in timeless styles, fits and washes! 6. casualmale.com to more! Order anytime, toll-free: 1.800.767.0319
Slide 27: Balance Sheet Refinancing
Balance Sheet Refinancing Post- RBT Acquisition and Levi’s and Ecko Sales 3rd Qtr, 2004 Post- RBT Acquisition and Levi Sale 3rd Quarter, 2004 Year-end 2004 Average Debt Balance Annualized Interest Average Rate Average Debt Annualized Average Balance Interest Rate 5% due 2007 $7.60 $0.38 5.0% $7.60 $
Slide 28: 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 co
Slide 29: 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 (July 2005) on 6ix