Not so fast, direct marketing service suppliers. While Casual Male Retail Group Inc. is increasing its marketing budget by $1.5 million, to $20.7 million, in its fiscal 2010 year, you won’t be seeing much of that. The bulk of it will be spent in support of its Destination XL retail concept.
Destination XL combines items from the company’s Casual Male XL and Rochester Clothing lines.
“Some mass market advertising and new customer prospecting may occur in local markets in connection with our Destination XL launch,” the company announced in documents filed with the Securities and Exchange Commission on Friday.
As for direct marketing, the company has already trimmed its catalog circulation, focusing on its more active customers. Total catalog circulation has been cut by 35%, according to the company.
During fiscal 2009, the company issued 15 editions of its Casual Male XL catalogs with a total circulation of more than 7 million copies. The company mailed 10 editions of its B&T Factory Direct catalog. The total circulation of these catalogs was 2 million copies. The company also sent out 2.3 million copies of its Rochester Big & Tall catalog in 13 editions.
Casual Male also released four editions of its Shoes XL catalog, with a total circulation of 1 million copies, and 9 editions of its Casual Living book, with an aggregate circulation of 1.8 million copies.
Casual Male has already seen fallout from its decision to reduce its circulation. While retail sales declined by 10.6%, direct sales dropped by 14.2%.
Casual Male does not break out its direct and retail revenue by dollar amounts. For the year, the company generated $395.2 million in sales, down from $444.2 million a year earlier. But it reported net income of $6.1 million, as opposed to a net loss of $109.3 million during fiscal 2008. Fiscal 2008’s results included a $71.4 million expense in goodwill asset impairment. The fiscal year for 2009 ended on Jan. 30, 2010.
