StreetInsider.com  Aug 17  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Casual+Male+Retail+Group+Inc+%28CMRG%29+Misses+Q2+EPS+by+1c/7669393.html for the full story.
StreetInsider.com  May 18  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Casual+Male+Retail+Group+%28CMRG%29+Reports+In-Line+Q1+EPS%3B+Comps+Up+2%25%3B+Reaffirms/7453345.html for the full story.
Benzinga  Feb 29  Comment 
Casual Male Retail Group, Inc. (NASDAQ: CMRG) today announced that its first DestinationXL® store in the Middle East will open this spring in Symphony Mall, Kuwait City, Kuwait under a franchise agreement between one of its subsidiaries and The...
Benzinga  Aug 18  Comment 
Casual Male Retail Group Inc (NASDAQ: CMRG) reported upbeat second-quarter profit and reaffirmed its forecast for the year. Casual Male reported its quarterly net income at $6.6 million, or $0.14 per share, up from $5.6 million, or $0.12 per...
StreetInsider.com  Aug 18  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Casual+Male+Retail+Group+%28CMRG%29+Tops+Q2+EPS+by+1c%3B+Comps+Up+4.9%25%3B+Guides+FY11+EPS/6727615.html for the full story.
MarketWatch  Jul 22  Comment 
Not all spending has dried up. If you look around, you’ll see there are good opportunities to invest in retail companies, writes Hilary Kramer.
Wall Street Journal  Nov 11  Comment 
Trying to spur sales growth, mass-market retailer J.C. Penney is gearing up for some specialty ventures, including an e-commerce site for gift givers and a chain for big and tall men.
TheStreet.com  Oct 13  Comment 
NEW YORK (TheStreet) -- Dennis Hernreich, CFO of Casual Male Retail Group, discusses the company's Destination XL plans and gives his forecasts for the all-important Christmas season.
Benzinga  Oct 11  Comment 
Brigham Exploration Company (NASDAQ: BEXP) shares rose 0.61% to create a new 52-week high of $21.37. Analysts at MKM Partners initiated coverage of BEXP with a “buy” rating. Casual Male Retail Group Inc (NASDAQ: CMRG) shares gained 3.41% to...
StreetInsider.com  Sep 28  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/The+Bon-Ton+Stores+%28BONT%29+Signs+Apparel+Agreement+with+Casual+Male+Retail+%28CMRG%29/6001852.html for the full story.


Casual Male Retail Group, Inc. (NASDAQ: CMRG) sells "big and tall" men's clothing, with 500 store locations throughout the United States, London, England and Canada, along with e-commerce and catalog operations. Casual Male operates under the trade names of Casual Male XL, Rochester Big & Tall Clothing and Sear’s Canada- Casual Male. The company offers hard to find sizes for "big and tall" men in a wide variety of basic casual wear and sportswear. The growing big and tall market size is approximately $6.0 billion in sales annually.[1]

Casual Male is the only national retailer to sell exclusively men's big & tall apparel, which places it in an advantageous position as the obesity rate in the U.S. has grown tremendously in the past twenty years.

Even by the hefty standards of the big and tall market, CMRG's customers are overweight. Nationally, only 35% of male Big & Tall customers have waistlines over 46 inches. However, 75% of CMRG's customers have waistlines larger than 48 inches. [2] In order to more effectively target customers with 42 - 46 inch waists, CMRG is launching a marketing initiative (through television ads) and launching three independent e-commerce sites that offer a variety of footwear and lifestyle products for men and women in the big & tall segment.

Low operating margins have been commonplace for CMRG, currently at 3.1%[3] due to high SG&A costs and merchandise markdowns as the retailer struggles to sell all of the products on its shelves.

Company Overview

CMRG is the leading specialty retailer of men's big & tall apparel with over $395.17 million in sales in fiscal 2010.[3] The men's big & tall apparel market includes sales of pants with a waist size of 42" and greater and shirts and tops with sizes of XL and greater.[4] Casual Male product assortment includes both national brands, such as Perry Ellis America, Geoffrey Beene, Izod and Reebok as well as in-house brands: Harbor Bay, Synrgy, 626 BLUE and Comfort Zone. Rochester Big & Tall stores offer brands like Burberry, Ermenegildio Zegna, Polo/Ralph Lauren and Tommy Bahama and in-house brands like Rochester 1906 and Castagne.

First Quarter Fiscal 2010 Results (ended May 1, 2010)[5]

Casual Male reported net income of $4.2 million, or $0.09 per diluted share, versus net income of $0.3 million, or $0.01 per diluted share, in the year-ago period. Comparable sales for the quarter decreased 0.7% and total sales decreased 2.6% to $95.0 million. Gross margin improved 330 basis points to 45.9%.

The Company expects to open four Destination XL stores during the second and third quarters of fiscal 2010. The first store, which is scheduled to open July 2010, will be in Schaumburg, Illinois, with stores in Memphis, Tennessee; Las Vegas, Nevada; and Houston, Texas to open by August 2010.

Retail and Direct Channel Operations

  • Casual Male XL: Casual Male merchandise is sold through 401 Casual Male XL retail stores, Casual Male XL catalogs and the company's e-commerce site. The retailer sells well-known brands of merchandise including: Polo Ralph Lauren, Nautica, Nautica Jeans Co., EcKo, Levi’s, Dockers, Calvin Klein, Reebok and others. The average Casual Male XL store is approximately 3,521 square feet and has approximately $185 in sales per square foot annually.[1]
  • Rochester Big & Tall: Rochester Clothing stores carry a broad selection of quality apparel, at higher price points, from well-known branded manufacturers such as Polo Ralph Lauren, Robert Graham, Joseph Abboud, Michael Kors, Ermenegildo Zegna, Cutter and Buck, Tommy Bahama, and Paul & Shark. The Rochester customer is able to find a wide range of apparel from traditional and modern sportswear to suits and accessories. These stores offer a personal shopper-type experience, with experienced staff that has a strong knowledge of the merchandise and services, such as custom made-to-measure suiting and on-site tailoring. At January 31, 2009, Casual male operated 27 Rochester Clothing stores, located in major cities throughout the United States and one store in London, England. The average Rochester Clothing store is approximately 8,192 square feet and has approximately $256 in sales per square foot annually.
  • Shoes XL: The company's website, shoesXL.com, carries a complete line of men’s footwear in extended sizes. This website offers customers a full range of footwear in hard-to-find sizes. Shoes XL currently has a selection of more than 400 shoes, ranging in sizes from 12M to 17M and widths up to 5E. The online store carries a number of designer brands including Cole Haan, Allen Edmonds, Timberland, Calvin Klein, Lacoste and Bruno Magli.
  • Living XL: The company's Living XL business, which includes the website livingxl.com, specializes in the selling of select unique, high-quality products which help larger people maintain a more comfortable lifestyle. Products sold on the website and in catalogs include sports and outdoor accessories, patio furniture, travel accessories, medical products and other household items.

Trends and Forces

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In 1985, there were only 8 states in the U.S. where at least 10% of the population was obese.[6]
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In 1995, at least 10% of the adult population was obese in all 50 states.[7]
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In 2007, at least 25% of the adult population was obese in 30 states and at least 15% of the adult population was obese in all 50 states.[8]

Rising Obesity Rates in the United States

In 2005, 61% of U.S. adults were overweight or obese, up more than 50% in ten years. Additionally, in 2005, all 50 states classified 15% or more of their total adult population as obese, versus four states in 1991.[1] According to the Center for Disease Control, the rate of obesity for the under-30 age group is growing faster than any other segment of the population.[1] These statistics suggest that there is a significant gap between the market share of the big & tall apparel market and the overall percentage of the population classified as overweight.[1]

As 75% of CMRG's sales are to men with 48 inch waists and larger, the majority of CMRG's business is derived from sales to men who would be classified as obese.[9] Because CMRG is a prominent retailer for clothing sized for obese men, the company stands to gain customers and subsequently sales as obesity rates rise in the United States. Obesity is a condition determined by an adult's Body Mass Index, which is a ratio of weight related to height. As the only major national retailer specializing in big & tall apparel and other related merchandise, CMRG stands to gain considerably if the obesity trend continues.

Narrow Operating Margins Caused by High SG&A Expenditures

Although CMRG has posted a gross margin above 41% every year since 2003, CMRG currently has an operating margin of only 3.1%[1] CMRG's SG&A (selling, general and administrative) expenses totaled $162.5 million in 2009, representing 41.3% of total revenue.[1] Much of these expenses are tied to write-downs and markdowns of merchandise inventories, which occurs when a retailer is unable to sell its merchandise and either drops its prices or sells the merchandise to discounters and off-price retailers. These expenses significantly detract from profits and prevent CMRG from earning larger operating margins.

New Online Business Ventures: Branching Out from Men's Clothing

In 2007, CMRG launched three new direct-to-consumer catalog and e-commerce business ventures: B&T Factory Direct, LivingXL and ShoesXL. B&T Factory Direct targets value-oriented customers in the men's big & tall apparel market by offering low priced private label merchandise similar to the assortment in Casual Male XL outlet locations. In addition to the B&T Factory Direct website, CMRG circulates 1.5 million B&T Factory Direct catalogs.[10] LivingXL targets big & tall men and women looking for plus-sized lifestyle products, including sports and outdoor accessories, patio furniture, travel and medical accessories and other household items. CMRG circulated 4.2 million LivingXL catalogs in addition to operating the LivingXL e-commerce website.[11] ShoesXL sells a range of men's footwear (casual, athletic, dress, formal) in extended sizes (Men's 12 to 17 with larger widths) from brands such as Timberland Company (TBL), Calvin Klein and Lacoste.[12]

Increasing Marketing Efforts to Capture 42-46" Waist Customer

Approximately 65% of the men's big & tall apparel market in the United States is composed of sales to customers with waist sizes between 42" and 46".[13] However, this segment accounted for only about 25% of CMRG's sales.[14] Rather than shopping at CMRG's specialty big & tall stores, these customers are shopping through other channels, such as catalogs and big & tall departments at mainstream department stores. In order to capture sales from this customer segment, CMRG has increased its marketing and advertising expenditures to 8% of sales to develop and launch a television ad campaign that is specifically directed at this 42-46" waist customer for 2008.[15]

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The proportion of overweight and obese adults in European populations is not as high as in the United States, but is still at record levels.[16]


CMRG is the only national specialty retailer of men's big & tall apparel. The second largest specialty big & tall apparel retailer was Dahle's Big & Tall, which CMRG acquired in 2008. As such, CMRG's direct competition comes from big & tall direct marketers who reach customers through catalogs and e-commerce operations and department stores and discount stores and mass merchandisers with big & tall departments.

Big & Tall Direct Marketers:

Department Stores:

Discount Stores and Mass Merchandisers:


  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Casual Male Retail Group 2009 Annual Report
  2. Casual Male Retail Group (CMRG) Annual Report 2008, Letter to Shareholders, pg. 2
  3. 3.0 3.1 CMRG Wikinvest Data Central
  4. Casual Male Retail Group (CMRG) Annual Report 2008, Our Industry, pg. 6
  5. Wikinvest: "Casual Male Retail Group, Inc. Reports First Quarter 2010 Results"
  6. Center for Disease Control, U.S. Obesity Trends 1985-2007
  7. Center for Disease Control, U.S. Obesity Trends 1985-2007
  8. Center for Disease Control, U.S. Obesity Trends 1985-2007
  9. Casual Male Retail Group (CMRG) Annual Report 2008, Letter to Shareholders, pg. 2
  10. Casual Male Retail Group (CMRG) Annual Report 2008, B&T Factory Direct, pg. 8
  11. Casual Male Retail Group (CMRG) Annual Report 2008, Living XL, pg. 10
  12. Casual Male Retail Group (CMRG) Annual Report 2008, ShoesXL, pg. 10
  13. Casual Male Retail Group (CMRG) Annual Report 2008, Letter to Shareholders, pg. 2
  14. Casual Male Retail Group (CMRG) Annual Report 2008, Letter to Shareholders, pg. 2
  15. Casual Male Retail Group (CMRG) Annual Report 2008, Marketing and Advertising, pg. 12
  16. EuroState Year Book 2006-2007
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