Casual Male Retail Group repeats loss in Q3; speeds up opening of DXL stores
Canton, Mass. — Casual Male Retail Group reported Friday a loss of $1.6 million in the third quarter, flat with the prior year’s third quarter.
Sales dipped slightly to $88.7 million from $89 million, and same-store sales inched up 1.5%. However, same-store sales for Destination XL rose 13.8% in the quarter.
"The early success of Destination XL gives us confidence in our plan to accelerate the opening of 225 to 250 DXL stores in major metropolitan areas and to close all of our traditional Casual Male XL locations across the country by the end of 2015," said president and CEO David Levin.
Leading retailers, CPG companies take on cancer
Some of the biggest names in the retail and consumer packaged goods industry were recognized by the American Cancer Society with 2012 Excellence in Philanthropy Awards.
It is a distinction reserved for a select group of companies who contributed in excess of $1 million to aid the Society’s efforts to eliminate cancer as a public health burden. This year’s award recipients collectively donated $53.6 million to the Society’s mission to create a world with less cancer and more birthdays. Among the 2012 honorees were, Abbott, Procter & Gamble, Bank of America, The Coca-Cola Company, Curves International, The Pampered Chef, Foot Locker, United Airlines, General Motors, Walgreens, HairUWear, Walmart, IBM Corporation, Kohl’s, WellPoint, Wells Fargo, Kroger Company, The National Football League and the Maurices and Dressbarn division of the Ascena Retail Group.
"The generosity and ongoing support of these companies has a direct impact on the American Cancer Society’s ability to help people stay well and get well, to find cures for cancer and to fight back," said John R. Seffrin, Ph.D., CEO of the Society. "It is with their help that we are able to save 350 lives per day from cancer and continue on the path toward our goal of saving 1,000 lives per day."
The Excellence in Philanthropy recognition is part of the American Cancer Society’s Corporate Impact Awards, presented annually by the Society’s Corporate & Systems Initiative. The honor is given to corporations that have provided $1 million or more to the Society during the previous calendar year through a combination of corporate contributions, in-kind support, cause marketing and sponsorship, employee giving and/or event fundraising.
Dress for less this Christmas? Ross thinks so
Value never goes out of style during the holiday’s and Ross Stores is well positioned to capitalize on this most enduring of seasonal behaviors.
Even so, following the release of third quarter results on Thursday, Ross stopped short of increasing its fourth quarter forecast the way some investors thought the company might. Ross maintained its full year profit outlook and also offered a conservative projection for same store sales to increase in the range of 1% to 2% during the fourth quarter. The tepid outlook was due in part to a comparison with a prior year fourth quarter when comps rose 7%.
"Our focus on bargains continues to make our stores attractive destinations for value-conscious customers," said Ross vice chairman and CEO Michael Balmuth. "During the holiday season, however, it is always difficult to predict how promotional other retailers may become or how current macro-economic and political uncertainties may impact consumer spending. We are also anniversarying the robust 7% increase in same store sales from last year’s fourth quarter. So, while we hope to do better, we believe it is prudent to maintain our prior fourth quarter guidance."
Fourth quarter earnings for the 14 week period ended February 2, 2013 are expected to range from 99 cents to $1.04 compared to the prior year’s 85 cents a share profit. The additional week in this year’s fourth quarter is expected to add between eight and nine cents to profits.
Balmuth issued the holiday outlook in conjunction with the release of third quarter results that saw sales increase 11% to a little less than $2.3 billion and comparable sales rise 6% on top of a 5% gain the prior year. Earnings for the period were 72 cents, compared to 63 cents the prior year and net income increased 11% to $159.5 million from $144 million.
"We are pleased with the strong sales and earnings increases we generated in the third quarter and first nine months of 2012," Balmuth said. "Our better-than-expected results year-to-date were driven by our ongoing ability to offer shoppers a fresh and exciting array of compelling name brand bargains for the family and the home. In addition, operating our stores on lower inventories while strictly controlling expenses continues to enhance profit margins."