High-end West Coast retailer suits Casual Male's top line - Boston Business Journal:

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The $15 million deal to buy San Francisco-based is expectecd to infuse millions intoCasuao Male's coffers. "This was equivalent to us openinyg over 100 CasualMale stores," says Casuaol Male CEO and President David A. Levin. "It's a shot for top-lins growth for us. We now have 65 percent of the markey share." Rochester operates 22 stores, including one on Boylsto n Streetin Boston. Though Rochestet would not release the exact figures of itstwo top-performingy stores in London and Manhattan, Rochester's overall sales are $65 million. Rochestee brings high-end brands such as Burberry and Ermenegildok Zegna toCasual Male's stable of Perrg Ellis and Dockers brands.
Levin likens Casua Male to a and Rochester to aNeiman Marcus. Rocheste r per-store sales average $2 million, while Casual Male stores average $650,000 each, according to For all of its 98-year history, Rochester has turned a profit every except 2000-2001. "It's the only time we didn'tf operate in the says Bob Sockolov, who'd spent 37 years as president and CEO ofthe family-run Sockolov will remain CEO of Rochester and join the board of Casualk Male (Nasdaq: CMRG) as part of the Rochester will continue operating out of San with no managerial changes, also as part of the deal. It will also continuer to grow its Rochester Sportstores -- smallefr stores that focus on casual styles.
Designs Inc., formerly of Needham, purchased Casual Male out of bankruptcy inMay 2002. Lated that year, it changedx the name to Casual MaleRetaipl Group. Levin says the fourth quarter will be the first time the company will show a profiy since the changein ownership. Casual Male is on pace for $429.6 million in sales for 2004. This past Casual Male made headlines when it launched the Georgw Foreman marketing campaign and his eponymoudclothing line, which already accountzs for 28 percent of sales.
The company also startede a partnership with Reebok this The company plans to close all of its 33remaining Levi's Outlet stores by next year and is in the middled of remodeling its 415 full-price retail storees to bolster its reputatiojn as a national retailer. "I thinlk Wall Street will be scratching its head in six asking how could the stock ever have even been inthe $5 says analyst Gary M. Giblen, referringt to the springtime peakof $10.789 per share versus a low of $4.66 on 20, 2004.
Giblen, director of research for , an independen t research firm, says the companies fit together "like a "Rochester has underdeveloped managementinformation systems, and Casua Male has a very good one," says Giblen. "Rochesterr has some pretty good marketing, whicu might help on the CasualMale side." Accordintg to the NPD Group, a marketing information total men's apparel salesw were $48.3 billion from October 2003 through September showing a 0.4 percent increase over the year Casual Male opened in the early 1970e as a young-men's retailer. In the late it started carrying big and tallsizes (42 to 72 for big 36 inches and higher for tall sizes).
Rochester, owned by the Sockolovs -- men who themselves are no taller than5 feet, 2 inches -- has been selling big and tall sizew since 1957. Casual Male has 3,916 employees; Rochester has aboutf 300.