Casual Male Retail Group Inc. posted net income of $3.6 million for the fourth quarter, compared to a net loss of $108 million in the prior year.
The direct marketer and retailer reported sales of $110.7 million for the quarter ended Jan30, a 10.1% decrease from $121.9 million last year.
The Canton, MA firm reported that gross margin increased 760 basis points to 46.4% over the prior year.
Management attributed this to improvements in merchandise margin, which was partially offset by deleveraging of fixed occupancy costs.
“Despite lower sales volumes related to the challenging macro environment, we dramatically improved our profitability and cash flow by aggressively managing inventory and expenses,” said CEO David Levin, in a statement. “As a result, we improved our merchandise margin by 890 basis points in the fourth quarter, reduced our bank debt 78% to $11 million and generated $26 million in free cash flow in fiscal 2009.”
