Specialty retailer Casual Male Retail Group, Inc. (CMRG) Thursday reported a narrower loss for the third quarter, reflecting lower expenses, despite a decline in sales. However, the company remains cautious for the remainder of 2009. Casual Male shares are currently trading down more than 9% on the Nasdaq.
For the third quarter, the Canton, Massachusetts-based company's net loss was $1.41 million or $0.03 per share compared with a loss of $3.20 million or $0.08 per share last year.
Casual Male's sales for the period dropped to $88.69 million from $100.01 million in the third quarter of fiscal 2008.
The company noted that both retail and direct channels experienced similar decline during the third quarter, contributing to an overall comparable sales decrease of 10.6% and 11.8%, respectively.
Third quarter gross margin rate improved by 50 basis points over the same quarter last year, reflecting a 240 basis point improvement in merchandise margin, offset by a 190 basis point deleveraging of fixed occupancy costs.
Commenting on the results, Executive Vice President, Chief Operating Officer and Chief Executive Officer Dennis Hernreich said, "Our profitability year to date has improved as a result of reducing our SG&A expenses by 17% and improving upon our merchandise margins."
During the three-month period, selling, general and administrative costs were $35.29 million versus $42.74 million, and depreciation and amortization expenses fell to $3.89 million from $4.14 million a year earlier. Total expenses for the period were down at $39.17 million compared to $46.89 million in the previous-year period.
For the nine-month period, Casual Male reported net earnings of $2.55 million or $0.06 per share as compared with a loss of $1.22 million or $0.03 per share in the comparable period prior year. Year-to-date sales slumped to $284.50 million from $321.13 million in the first nine months of fiscal 2008.
Looking ahead, the company said it remains cautious about sales trends for the fourth quarter. Casual Male currently expects sales for the year to be nearly 11% to 12% less than last year, as compared to its previous range of 10% to 12%.
The company anticipates merchandise margins to improve between 300 to 325 basis points, partially offset by unfavorable leveraging of fixed occupancy costs of about 190 to 200 basis points.
In Thursday's regular trading session, CMRG is currently trading on the Nasdaq at $2.52 per share down $0.27 or 9.52% on a volume of 54,413 shares. In the 52-week period, the shares have been trading in a range of $0.26 to $3.78.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.