With ever-stronger same-store sales, big-and-tall men's retailer Casual Male Retail Group
The sales figures beat analysts' forecasts, and while Men's Warehouse
Catering to the larger-sized male physique -- the company calls the 3X size the "sweet spot" of its target market -- Casual Male has successfully rebranded its image, and it's now pursuing acquisitions to scale up the company and broaden its appeal.
Earlier this year, the plus-sized men's clothier acquired high-end custom retailer Jared M. Though that division recorded a quarterly loss, management expects the division to turn profitable in the first quarter of 2007.
The company also acquired an online large-sized lifestyle retailer called SuperSizeWorld.com, which offers products and accessories aimed at the big-and-tall man. Next year, Casual Male will rechristen the site ThinkBig.com. Need an extra-large toilet seat? You'll be able to find it at ThinkBig. Same with wider patio chairs, longer wristwatch bands, outdoor apparel, and other items that cater to the often-overlooked needs of big men.
It's an interesting strategy for Casual Male, which has typically focused on the clothing needs of the big and tall. When it emerged from bankruptcy a few years ago, it shed the Levi's and Dockers outlet stores it had been carrying, scooped up Rochester Big & Tall, and made a play for that demographic, which retailers had previously ignored.
Abercrombie & Fitch
The age demographic is also changing. American Eagle Outfitters
That kind of opportunity has made Casual Male a popular destination for the larger-sized population. With its new website acquisition, Casual Male can now inundate its mailing list with promotions for items that its customers might have previously had trouble finding. It could also make the Casual Male name synonymous with the plus-size lifestyle, rather than just a place to get a decent suit that actually fits.
Over the past year, the stock has more than doubled in value, and though it sits about 8% below its 52-week high, I continue to see stronger opportunities for the company and the stock, which should result in some supersized profits for investors.
Further expansive Foolishness:
- Foolish Forecast: Casual Male Relaxes
- Casual Male Grows Up
- Casual Male's Heavier Profits
- Casual Male's Casual Relationships
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