Destination Xl Group, Inc. · NASDAQ:DXLG
Destination Xl — Casual Male Retail Group — Investor Presentation (September 2006)
53 slides from Destination Xl's investor presentation, Sep 7, 2006
Slide 1: Casual Male Retail Group Inc.
CASUALIMALE retail group inc.
Slide 2: Market is growing as a percent to total menswear sales
1991 Market is growing as a percent to total menswear sales Obesity Trends* Among U.S. Adults 1996 (*BMI 30, or about 30 lbs overweight) No Data <10% 10%–14% 15%–19% 20%–24% 25% 2004 In 2004, 7 states had obesity prevalence rates of 15–19 percent; 33 states had rates of 20–24 percent; and 9 states h
Slide 3: Casual Male Retail Group divisions support all big & tall demographics
Casual Male Retail Group has divisions which support all demographics within the big & tall market
Slide 4: Brands and divisions
BOR ALES Established 1906 Sears’ —— CASUAL|MALEY) M. c US TOM CLOTHING (Gaiee] XQ Outlet
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Slide 7: Jared M.
Jared M. • Custom clothing continues to be growing in the higher-end men’s business • Spring ’07 launch – Jared M. shops in high profile Rochester markets – Jared M. catalog – Jared M. website
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Slide 10: Designer brands
claiborne = Ht BURBERRY. CANALI —>—_ He Cloth by Ermenegildo Zegna TAS
Slide 11: Home | Shirts | Pants | Sale
Home | Shirts | Pants | Sale The first look at Polo Ralph Lauren Fall Collection 2006 Wy ‘Visit our new stores now open in Boca Raton, FT... Manhasset, NY and Woodbury Common Premium Outlets, NY.
Slide 12: Rochester overview
Rochester Overview • Rochester currently with 23 US stores • 1 store in United Kingdom. Rochester * 1 London, United Kingdom
Slide 13: Rochester Big & Tall
ROGHESRERSBIGTSS PAB ROCHESTER = BIG &MALD=
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Slide 16: Comp Store Trend
Comp Store Trend -5.0% -2.3% -1.1% 2.4% 9.2% 4.8% 1.6% 2.0% 2.3% 2.5% 3.70% 7.90% 5.40% 10.60% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2004 2003 Stores change to lifestyle presentation Launch of George Foreman collection and TV campaign 2005 2
Slide 17: Sales Per Square Foot
Sales Per Square Foot 2003 2004 2005 2006 Forecasted
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Slide 19: Annual Relocation Plan
Annual Relocation Plan Calendar Year Number of Stores 2008 2007 2006 Relocation of lower performing store will improve $ per square foot Relocation Potential
Slide 20: Relocation: Utica to Sterling Heights, MI
¼ mile apart / Cost $41,975 9064 Utica, MI to Sterling Heights, MI Old Location : In-Line Strip Center with Vacant Anchor No Street Visibility 4000 Sq. Ft 05 sales: $817,000 05 cash flow: $194,000 New Location : End-Cap Multi-Tenant Building Mall Pad 3500 Sq. Ft Trend prior to relocation: -1.61% Tre
Slide 21: Relocation: Katy, TX
8 miles apart / Cost $126,194 9612 Katy, TX Old Location : Power Center Multi-Tenant Pad 2500 Sq. Ft 05 sales: $439,000 05 cash flow: $90,000 New Location : Duplex Pad End Cap within Regional Power Center 3700 Sq. Ft Trend prior to relocation : 6.12% Trend after relocation 03/30/06: 29.41%
Slide 22: Increasing sales of smaller sizes within big & tall
Increasing sales of smaller sizes within big & tall
Slide 23: National Sales by Size
National Sales by Size $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 46-60 Waist
Slide 24: Market Share Size Opportunity
Market Share Size Opportunity Casual Male Sales by Size Data based on ’04 sales of Casual Pants, Dress Pants and Jeans $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 Waist Size
Slide 25: Rebranding Casual Male
Rebranding Casual Male
Slide 26: 50% of customers refer to Casual Male as the Big & Tall store
50% of customers refer to Casual Male as the “Big & Tall” store
Slide 27: Casual Male
CASUAL MALE
Slide 28: Before
Before
Slide 29: After
After
Slide 30: Attracting Younger Big & Tall Customers
Attracting “Younger” Big & Tall Customers to Casual Male Brand
Slide 31: Obesity in Young Men
Obesity in Young Men • Opportunity to increase penetration of under 30 demographic – Among American men ages - 34, prevalence of obesity has increased dramatically since 1976 • CM indexes low in young men’s demo- identifies opportunity for growth Men Age 20 - 34 8.9 14.1 21.7 1976-1980 1988-1994 199
Slide 32: Customer Lifestyles
Customer Lifestyles Synrgy Age 18-35 Harbor Bay Age 30-50 626 Blue Age 18-35
Slide 33: Blue
626 BLUE’
Slide 34: Introducing Synrgy
introducing | synacy SYNRGY
Slide 35: Your Size, Harbor Bay
— “ia youR SIZE HARBOR BA
Slide 36: Multi Channel Shopping
Multi Channel Shopping In-store, Catalog & Online
Slide 37: Casual Male marketing
‘ALLO CASUAL!MALE CASUAL MALE why be avéragelwhen mex |
Slide 38: Customer Sales by Channel
Customer Sales by Channel * Indexed to retail only shoppers Retail only Catalog Only E-commerce Only Retail & Catalog Retail & E- commerce Catalog & E- commerce Retail & Catalog & E- commerce
Slide 39: Casual Male Direct Growth
Casual Male Direct Growth • Penetration of Casual Male’s direct business continues to grow… $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 2004 2005 2006 Forecast
Slide 40: Casual Male Internet Sales by Year
Casual Male Internet Sales by Year $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2002 2003 2004 2005 2006 Forecast
Slide 41: Loyalty Program
Loyalty Program
Slide 42: Loyalty Program Launch Mailer
Loyalty Program Launch Mailer • Mail date: October 15 th / Circulation: 1M • Creative: 24 page mailer with wrap • Free gift in store for top 15K customers • Top 300K customers will be auto-enrolled and will receive loyalty card & populated application with brand mailer • ~600K customers will receive
Slide 43: Earn double points
— PLUS — Earn DOUBLE POINTS fn purchases thru Sun,, Det 22nd
Slide 44: Sears
Sears
Slide 45: Casual Male XL now available by catalog or online
CASUAL!/IMALE Casual Male XL, the leader in big & tall clothing, now available by catalog or online.
Slide 46: Sears Men's Big & Tall page
Order Status | Customer Service | My Profile Recently Viewed PY Cart - 0 items ($0.00 Sears (Appliances | autS@] Baby ‘Electronics & Computers Fitness & Sports | For the Home | Health & WellnesS4 Jewelry | Lawn & Garden | Shoes Tools | Toys &Games | Search in| Clothing >| for 30 | { Sears outlet |/
Slide 47: Stylish shirts, pants & jeans fashion
‘we've got it! stylish shirts, pants & jeans fashion
Slide 48: B&T Factory Direct
B&T Factory Direct
Slide 49: B&T Factory Direct
yO & Tay ZN: BT FACTORY DIRECT ~~
Slide 50: B&T Factory Direct
B & T Factory Direct • Launching a new Direct venture which addresses the lower end big & tall shopper • Strategy is to take market share from King Size, largest direct business in bit & tall • Initial phase is web launch in mid-September with B&T Factory Direct site; www.btdirect.com • Launch 68 pa
Slide 51: Your sizes. Your style.
YOUR RIZES. TOUR STSLE. AT LAST. YOUR SIZES. YOUR WELCOME tone vy Ft Eton of BAT Dect. The lec ct lo orb set, tha he, the wos ou ant Locking get it COMFORT | come isimporare 19 a tore rp ia arcs cangtoynndctien youl Borah saith "nese busines oan, coca ye eset thea ia enw cates took ata atin to teste
Slide 52: Great Price Basics
i GREAT PRICE BASICS STYLE. PRICED RIGHT.
Slide 53: Growth drivers
Growing of America Lower Income Customers Custom Clothing Market Share increase | 2 % Rochester Store Growth Loyalty Program Catalog/ Internet Younger/ Smaller
Casual Male Retail Group — Investor Presentation (September 2006) on 6ix