May 24-26, 2010

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(NASDAQ: DFZ). May 24-26, 2010. B. Riley 11 th Annual Investor Conference. Safe Harbor Statement - PowerPoint PPT Presentation

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May 24-26, 2010

B. Riley 11th AnnualInvestor Conference

(NASDAQ: DFZ)

(NASDAQ: DFZ)

Safe Harbor StatementSome disclosures in today’s presentation are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements: (1) discuss our future expectations; (2) contain projections of our future results of operations or of our future financial condition; or (3) state other “forward-looking” information. Such statements generally can be identified by forward-looking words such as “may,” “will,” “expect,” “anticipate,” “believe,” “estimate,” or words with similar meanings. These statements involve substantial risks and uncertainties and are based upon our current plans, strategies and an assessment of factors that could impact our business. Risks described in “Item 1A. Risk Factors” of our 2009 Annual Report to Shareholders on Form 10-K give examples of the types of uncertainties that, should they occur, could cause our actual performance to differ materially from the expectations described in our forward-looking statements. We encourage you to review our most recent Form 10K for details of these risk factors. We do not undertake any obligation or plan to update the information presented today.

(NASDAQ: DFZ)

Consistent sales increasesand strong earnings performancefor 5 consecutive years

2006 2007 2008 2009 2010

$97.5♦

$105.3$109.5

$113.8 $107.2♦♦

♦Pro-forma 52-weeks ended July 1, 2006♦♦40-weeks ended April 3, 2010

(NASDAQ: DFZ)

Proven senior management team with extensive industry experience

• Global sourcing – 25+ years

• CEO – 20+ years

• Finance – 20+ years

• Sales – 20+ years

• Creative services – 18+ years

• Human resources – 18+ years

(NASDAQ: DFZ)

Undervalued in our category

Enterprisevalue average10.9x EBITDA

DFZenterprisevalue4.7xEBITDA

(NASDAQ: DFZ)

Excellent potential for expansion over the next 5 years through:

2011 2012 2013 2014 2015

1) Organic growth - Dearfoams

2) New channels

3) International

4) Diversification through acquisition

(NASDAQ: DFZ)

• Our flagship brand, Dearfoams, is the world’s No. 1 slipper brand.

• In the past 12 months, 1/3 of all U.S. slipper consumers have purchased Dearfoams.

• 72% of all U.S. slipper consumers plan to buy Dearfoams at their next purchase.

R.G. Barry was founded in Columbus, Ohio in 1947. Today, we are the world’s leading developer/marketer of accessory footwear.

(NASDAQ: DFZ)

Our current brand lineup includes

Owned Licensed Private

(NASDAQ: DFZ)

We add exceptional value for our retailing partners by leading our category in the core competencies necessary for success.

• Sourcing quality and value (more than 25 million pairs annually)

• Design and product development

• Consumer brand marketing

• Retail category management

• Supply chain and logistics

• Building partnerships with our customers

(NASDAQ: DFZ)

Top retailers and the industry acknowledge our category leadership

Named category manager and sole supplier for replenishment slippers

Footwear Vendor of the Quarter

Men’s Essentials Vendor of the Year

Best in Class – Accessories

‘Partners In Progress’ Award

Trade votes Terrasoles 2009Outdoor Lifestyle Brand of the Year

Accessories Vendor of the Quarter

(NASDAQ: DFZ)

2010 results through three quartersFY2010 9-month performance vs. comparable period in FY2009

DILUTED EPS up 44.8%

SG&A % down 1.5%

2010

2009

Net sales up 12.2% $107.2

Diluted EPS up 47.1% $1.00

Gross profit up 4.0%* 42.2%

Cash up 33.0% $46.7

Net shareholders’ equity up 7.2% $57.8

*as percent of net sales

ROSE 19.0%

(NASDAQ: DFZ)

ICON ADDYY WEYS WWW SKX SHOO DFZ BOOT NKE DECK2%7%

24%

39%48% 51%

52%

85%

217%

DJ Footwear IndexDJ Footwear IndexTop 10 performers May 2006-May 2010

-1%

DFZ

Top quartile performanceDFZ is consistently among the top-performing public footwear and accessories companies

217%

(NASDAQ: DFZ)

Today’s key takeaways• Category leader• Proven model, even in ‘difficult’ years• Organic & new initiative growth• Pristine balance sheet

▶ Strong cash position; minimal cap-x needs - <$1.5 million annually; no debt; and clean inventory

• Undervalued ▶ Enterprise value 4.7 x EBITDA vs. peer average of

10.9 x EBITDA▶ Analysts cite financial strength, low multiple and

strong growth prospects as reasons to BUY

• Dividend policy ▶ $0.20 annually, paid $0.05 per quarter▶ FYTD per share return 23.2 percent of free cash flow

• Strong, focused management team

(NASDAQ: DFZ)

?Questions

Thank you for your consideration

For additional information:

Roy YoustDirector Investor & Corporate Communications

R.G. Barry Corporation/The Dearfoams Company13405 Yarmouth Road NW

Pickerington, OH 43147

614-729-7275 – office614-729-7276 – faxryoust@rgbarry.com

www.rgbarry.com

(NASDAQ: DFZ)

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