On May 24, Casual Male Retail Group (NASDAQ:CMRG) released first-quarter earnings for the period ended May 5.

  • Sales in all channels improved, leading to an 8.2% increase in revenue and a 6.2% rise in comps.
  • Gross margins improved as a result of increasing the private label business and higher initial markups.
  • Excluding the sale of the company's loss prevention business, LP Innovations Inc., for a gain of $1.4 million in 2006, earnings per share rose from an adjusted $0.02 to $0.03.
  • Both Casual Male and competitor Men's Wearhouse (NYSE:MW) earn three out of five stars in the online Motley Fool CAPS investment community.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$111.3

$102.9

8.2%

Net Profit

$1.1

$1.4

(19%)

EPS

$0.03

$0.04

(25%)

Diluted Shares

44.4

37.1

19.6%

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

45.8%

43.8%

2.0

Operating Margin

2.3%

2.3%

(0.1)

Net Margin

1%

1.4%

(0.3)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$6.7

$8.8

(24.1%)

Inventory

$122.7

$103.3

18.8%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$55.9

$56.0

(0.3%)

*Includes accrued expenses and other liabilities.

The balance sheet reflects the company's health.

Cash Flow Highlights

The cash flow statement is at the tailor getting altered.

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