Reuters
May 21, 2009
Casual Male Retail posts surprise Q1 profit, shares up
Reuters
May 21, 2009
May 21 (Reuters) - Casual Male Retail Group Inc (CMRG.O), which makes clothing for larger men, posted a surprise first-quarter profit as it managed its costs better, sending its shares up as much as 29 percent.
Casual Male Retail, Spring 2009 |
The company, which operates the Casual Male XL and Rochester Big and Tall Stores as well as a catalog and e-commerce business, said it continues to expect sales for the year to decline about 10 percent.
For the first quarter, it reported income of $336,000, or 1 cent a share, compared with $96,000, or breakeven, a year ago.
Sales fell 9 percent to $97.6 million, while comparable sales for the 13-week period ended May 2 fell 10.7 percent.
Two analysts on average were expecting company to post a loss of 3 cents a share, according to Reuters Estimates.
Selling, general and administrative expenses fell 14.2 percent to $37.1 million for the quarter.
"The cost reductions implemented during the quarter relate primarily to re-focusing our marketing spend..., reductions in our corporate headcount, store and distribution productivity improvements, and renegotiation of numerous service and supply contracts," the company said.
Shares of the Canton, Massachusetts-based company touched a high of $1.70 before shedding some gains to trade up 22 cents at $1.54 on the morning of Thursday 21 May on Nasdaq. (Reporting by Poojya Trivedi in Bangalore; Editing by Himani Sarkar)
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